i live in a condo and have a land lease that i pay monthly. is an escalation clause legal.

I'm interested in knowing if leased land is subject to an esclation for condo property
In Property Management - Asked by Raymond r. - May 2, 2015
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Answer(s)

Marty C.
Corporate Investor
Capistrano Beach, CA

Yes an escalation clause can be legal. It should have been brought to your attention by the agent, seller, or developer. However as as withmany things in Real Estate it is let the buyer beware.

May 5, 2015
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Barry B.
Broker/Agent
Oceanside, CA

PROBABLY, BUT I WOULD NEED TO KNOW UNDER WHAT CIRCUMSTANCES THE ESCALATION CLAUSE BECOMES EFFECTIVE. IT THE LEASE HAS BUILT-IN RENT INCREASES AND YOU ARE THE RENT INCREASE STAGE THAN YES IT IS LEGAL. IF YOU ARE SELLING YOUR CONDO AND THE LEASE CALLS FOR A RENT INCREASE AT THE TIME OF SALE, THEN YES IT IS LEGAL.
I WOULD SUGGEST YOU TALK TO AN ATTORNEY IF YOU THINK THERE IS SOMETHING WRONG.
ANYTIME YOU BUY PROPERTY ON LEASED LAND, YOU SHOULD EITHER READ THE ENTIRE LEASE, OR HAVE IT REVIEWED BY AN ATTORNEY. THERE ARE MANY CASES WHERE AT THE END OF LEASE, THE BUILDINGS REVERTS TO THE LAND OWNER WITHOUT COMPENSATION.
GOOD LUCK. IF YOU WOULD LIKE TO DISCUSS YOUR SITUATION IN MORE DETAIL, PLEASE FEEL FREE TO CONTACT ME.
BARRY

May 9, 2015
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Sam P.
Redlands, CA

The short answer is yes, it is permissible to have an escalation clause in which the rents increase over the term of the lease. In fact, for very long term leases and for commercial leases, it is quite common. There are many ways in which the rents can be increased, either by a fixed amount or percentage, or by the use of an index (such as the consumer price index) and margin. I've represented tenants in lease negotiations and have been very successful in getting the landlords to rewrite the lease terms.

May 11, 2015
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Marie S.
Beaverton, OR

Illegal Fraud False Pretenses.
.Financial Abuse
FalsifyingbVerbal Contract...
Scams .Thousands If Dollars Property Invasion to Committ
Harm Fraud Assaults
ADA Abuse Owner of inhabital Abusive Assaults
Scams ..To Take Money Scam Personal Information
Hippa Violation...

Feb 19, 2017
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