Legal Question in Real Estate Law in Pennsylvania

Re: commercial lease-confession of judgment

Confession of judgment is a very severe remedy. It allows a landlord to enter judgment for eviction and judgment without notice or a right to defend. The ramification of this clause is too complex to describe in this forum. I suggest you consult with a lawyer. It is a standard clause but as a tenant you should try to eliminate it. If I can be of any assistence, please call. Gerald Hershenson 215-579-9390

Re: commercial lease-confession of judgment

It is common in PA commercial leases to have confession of judgment. This permits the landlord to enter a judgment against a defaulting tenant without having to go through an entire law suit first.

However, there are ways to build in protections for the tenant so that a judgment is not entered without the tenant having some kind of written notice and an opportunity to cure any alleged default.

Sometimes this is limited to confession of judgment for possession of the premises, sometimes landlords will seek a confession of judgment for the entire rent due for the term of the lease.

These provisions are negotiable to some extent.

If your partner already has signed this lease, nothing can be done to change the terms, because it is already binding.

There are many other issues contained in leases for business property. It is important to consult with a real estate attorney with leasing experience to determine what your exposure to liability will be and how you may be protected.