Use Provisions

While more common in commercial leases, both type of lease can contain provisions as to the use to which the property can be put. Generally, such a provision might require compliance with all applicable laws and codes regarding any specific use of the property. More specifically, it might state that the premises are to be used only for (for example) storage of nonflammable materials, or “for an auto repair facility,” or “for fewer than five individuals and no pets.” It may also require the tenant to obtain any permits necessary for occupancy and operation of the premises or business. Finally, certain commercial leases will have clauses specifically designed to incorporate rules for the commercial development (such as use restriction or shopping center rules, etc.) so that the tenant has no argument that it lacked knowledge of the rules.

In addition to restrictions such as set forth in the preceding paragraph, there may also be restrictions that are protectionist in nature – that is, they mandate that only “Coffee Shop” is permitted to run a coffee shop in the plaza or mall, or that nobody except “Department Store” can run a department store for men’s clothing in the plaza or mall, etc.