Legal Question in Real Estate Law in Illinois

The lease reads: "In the event that the T sublets, assigns or otherwise transfers its interest in the Lease and at any time receives periodic rent and/or consideration which exceeds that which T would at that time be obligated to pay to L, T shall pay L 50% of the gross increase in such rent and 50% of any other consideration as received by the T." But it seems unfair to pay the L since T made significant improvements to the unit and had the lease for 10 years.


Asked on 10/16/12, 10:28 am

1 Answer from Attorneys
Stephen Messutta

There are some things in leases that the law forbids. This is not one of them. I assume you are the T. If you made improvements to a leasehold, and unless you had a special agreement with the landlord, anything you add that is permanent usually becomes the L's property at the end of the lease without compensation to T. The length of the lease is really irrelevant. So it may be time for you to take the lease to a local attorney to review; reviewing pieces of it may not tell the whole story and there may be some helpful provisions. Since you did not include your zip code, there may be local ordinances affecting your lease; if not Illinois law does not prevent such a "sharing of rental profit" arrangement although it is more often seen in commercial leases if anything.

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Answered on 10/17/12, 8:04 am


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