USA - NEW YORK Law and Practice Contributed by: Adam S. Walters, Erin C. Borek, Timothy P. Moriarty and Kelly E. Marks, Phillips Lytle LLP
to file beneficial ownership information reports with FinCEN pending the outcome of the case. 5.6 Annual Entity Maintenance and Accounting Compliance New York corporations and limited liability com - panies have biennial statement fees of USD9 each. These fees are subject to change. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time A lease and a license are two common legal arrangements that allow a person, company, or other organisation to occupy or use real estate that it does not own. A lease is a contract between a landlord and a tenant whereby the tenant is given the exclu - sive right to occupy the landlord’s property for an agreed-upon time period. A lease is an inter - est in real property that can be transferred to another, subject to restrictions contained in the lease agreement. A license is an agreement granting a limited use of a property. A license is not an interest in real property. A license is typically terminable by the licensor, not transferrable, and not exclusive, and may be subject to a right of relocation. 6.2 Types of Commercial Leases There are several types of commercial leases,
Parties sometimes refer to net leases as single net leases, double net leases or triple net leases. The distinctions are not absolute, but in a triple net lease, the tenant pays all costs and expens - es with respect to the real property. Gross Leases The landlord provides services and pays the operating expenses for the property, and such expenses are typically factored into the tenant’s rent. In addition, the tenant typically pays esca - lation charges with regard to real property taxes and operating expenses. In Class A office build - ings, the tenant typically pays its proportionate share of taxes and operating expenses over the negotiated base year. In retail leases, the tenant typically pays its pro - portionate share of such taxes and expenses from the first dollar. Ground Leases The landlord leases the land to the tenant. The tenant pays ground rent, covers all costs and expenses, and is responsible for all improve - ments to the premises. Upon the expiration of the lease, possession of the land and ownership of any improvements revert to the landlord. 6.3 Regulation of Rents or Lease Terms There is no commercial rent regulation in New York State. The terms of commercial leases are a matter of negotiation between the parties, sub - ject to case law and statutes pertaining to spe - cific issues. For example, statutes provide that a lease cannot contain a waiver of a landlord’s responsibility for its negligence. There are no-going regulations of rents for com - mercial leases.
as follows. Net Leases
The tenant pays rent, as well as all or a portion of the operating expenses for the property such as taxes, insurance, maintenance, and utilities.
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