A real estate lawyer representing borrowers is forced to wear many hats during a transaction. Your mission is to negotiate debt documents, establish legal opinions and reorganize your corporate structure for “ends” or “bankruptcies,” among countless other tasks. However, one of the things that is often lost in weeds at the beginning of the transaction is the analysis of any confidentiality provisions in your client`s leases. Who is the restricted party? This may seem obvious, but the obligation of confidentiality is often one-way and only engages the tenant, especially when the lessor has offered concessions under this specific tenancy agreement that he does not want to publicly disclose. If your client is unable to comply with the confidentiality rules as it stands, you must negotiate a separate agreement with the tenant. As this may take time, we propose to start this process as soon as possible in the agreement. In most countries, it is illegal for landlords to pass on financial information about a potential tenant or tenant to third parties without written consent. And the more broadcast there is, a landlord must take extra precautions to protect tenants from identity theft. First, you need to make sure your client is following the rules himself. They should consider the appropriateness of certain authorized recipients of confidential information. It is customary for leases to allow disclosure to the lessor`s brokers, mortgages, lawyers, accountants and other professionals. However, authorized disclosure may be conditional on the recipient receiving a confidentiality agreement and the lease agreement most likely provides no indication of the form of the confidentiality agreement. What is the tenant`s recourse in the event of a violation of the provisions? A tenant`s typical remedy would involve a termination action for non-disclosure.
However, the rental agreement can give the tenant the right to very specific remedies, such as . B a reduction in rent for any apparent breach of confidentiality restrictions or an early termination right. The purpose of the contract is to prevent the unauthorized disclosure of confidential information (as defined below) on the residential rental property at the address (the “property”). “Confidential information” is proprietary information that relates to the property, including, but not limited to: revenue, taxes, planned capital improvements, the identity or financial status of investors or partners, or any other information transmitted in writing or during a discussion and declared confidential. Without the landlord`s prior written consent, the tenant: (a) will not disclose confidential information to third parties; b) make or authorize copies or other copies of confidential information; or (c) to use confidential information for commercial purposes. At the landlord`s request, the tenant must return within thirty days all original materials relating to confidential information. This agreement and the obligation for the tenant to keep confidential information confidential remain in effect until what happens first: (a) the lessor sends the tenant a written notice making it public under this agreement, or (b) the confidential information disclosed under this contract is no longer confidential. Commercial landlords with multiple properties or developments with more than one tenant generally refuse to disclose to potential tenants the rental conditions in which they have previously entered.