Legal Question in Real Estate Law in New York

Re: Rent Commencement Date

The attorney that drafted that commercial lease should be contacting his or her malpractice carrier.

In every contract (lease or otherwise) there is a duty to act in good faith.

When the parties entered into the lease agreement, there was no reasonable expectation that the tenant remains in the premises rent free indefinitely. The tenant had a duty to act in good faith to obtain all governmental approvals. There is some reasonable time for this to occur.

If the tenant is not acting in a good faith manner than the landlord would have the option of giving notice that approvals must be obtained on a specific date (that must be reasonable) or the tenant would either have to commence paying rent or vacate the premises. In other words, the landlord would deliver a "time of the essence letter" for a time condition that was not set forth in the lease.

Mike.