Legal Question in Real Estate Law in Michigan
Triple Net Expenses
I lease a space for my business. The lease agreement states (in
more than one place) I am responsible for .1395% for Triple Net
Expenses. I received a bill from my landlord for 13.95%. When I
pointed out the error to the landlord, she stated ''when you move
the decimal point over 2 spaces, .1395% becomes 13.95%.'' No
where, in my contract, does it mention anything about moving the
decimal point over 2 spaces. This would make sense if the contract
stated ''.1395'' without the percentage sign, but a percentage sign
is clearly present. While I understand 13.95% is a resonable
amount to pay for Triple Net Expenses, shouldn't I only be charged
the amount written in my contract? Am I responsible for 13.95% or
.1395%. How do I respond to her? What are my next steps?
2 Answers from Attorneys
Re: Triple Net Expenses
.1395% would read exactly the way you claim. If your landlord (not you) drafted the lease agreement, she may be held to its literal terms. You seem to have a good argument for paying only .1395% as written. Should you have further questions or require assistance, please contact me via www.lawgreg.com
Re: Triple Net Expenses
I beleive that you would have a good case for paying only the percentage allowed in the contract. However, if the space is retail space, and you need some goodwill from the landlord, (maybe you want to renew in the future), AND you believe that the intended share is fair, prehaps you might consider paying the $13.95. It's really a business decision - weigh the cost of 13.95% agaisnt the utility of agreeing with the landlord. Good luck.
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