USA - NEW JERSEY Law and Practice Contributed by: Steven Fleissig, David Freylikhman, Cory Mitchell Gray and David Jensen, Greenberg Traurig LLP
6.13 Tenant’s Ability to Alter and Improve Real Estate Tenants must typically request the landlord’s prior written consent as to any alterations or changes to be made within its leased prem - ises. This is especially important for a landlord in terms of any potential tenant alterations that could reach beyond the tenant’s own premises and potentially affect the structural portions of the building, the building systems, or affect ingress and egress. Often, the lease will provide that a tenant may make alterations without the landlord’s consent provided that such alterations are cosmetic in nature, do not exceed a dollar threshold, do not require a building permit, and/ or do not affect the structure, the roof, the build - ing systems, or ingress to or egress from the building. 6.14 Specific Regulations All tenants in New Jersey are entitled to the right of quiet enjoyment. Residential tenants are given greater rights relating to a warranty of habitabil - ity. In addition, case law in New Jersey imposes an obligation on landlords to mitigate damages in the event of a tenant default. This applies in com - mercial and residential contexts. Accordingly, in the event of a tenant default where the lease is terminated, the landlord must use commercially reasonable efforts to relet the premises. 6.15 Effect of the Tenant’s Insolvency The tenant’s insolvency in a lease context is gov - erned by applicable bankruptcy, insolvency, and creditor’s rights statutes. When the tenant files for bankruptcy under federal bankruptcy law, an “automatic stay” is imposed which initially restricts the enforcement of remedies or the ter - mination of the lease by the landlord, absent of relief from the bankruptcy courts.
response to the equivalent section in the 2023 US Real Estate guide below. The COVID part of the question can, I think, be safely ignored as no longer particularly relevant. We will be removing the COVID-19 questions from the 2025 ques- tionnaire anyway. In New Jersey, landlord and tenant each main - tain their own insurance. Typically, the landlord will impose an obligation on tenants to maintain specific forms of coverage and to include the landlord as an additional insured. Such insur - ance will usually include general commercial lia - bility and personal injury in certain amounts and limits that will vary depending on the premises and the use. Often, landlords are not required to maintain any insurance but will do so as a matter of business practice and will look to cover the common areas, structures, and roof as well as general commercial liability and personal injury, with such costs to be included in the operating expenses payable by tenants. 6.12 Restrictions on the Use of Real Estate In New Jersey, landlord and tenant each main - tain their own insurance. Typically, the landlord will impose an obligation on tenants to maintain specific forms of coverage and to include the landlord as an additional insured. Such insur - ance will usually include general commercial liability and personal injury in certain amounts and limits that will vary depending on the prem - ises and the use. Often, landlords are not required to maintain any insurance but will do so as a matter of business practice and will look to cover the common are - as, structures, and roof as well as general com - mercial liability and personal injury, with such costs to be included in the operating expenses payable by tenants.
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