ozazure
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- Oct 12, 2010
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It's crazy rare to put a Caveat on a tenants house. We've leased shops for decades and I can't think of ever even considering such a move, we have also had tenants get months behind in the rent and let it go on because retail has been tough and you'd rather have someone in there (shop leases are typically 5 years), but eventually you just evict them if it seems the business is not going to recover. I think it's very rare, but perhaps the landlord had been offered the option because the tenants were desperate to stay in business and it was to avoid an eviction.
It is a fair sized shopping centre, with tenants such as Big W and Target, it is a different scale to individual investors renting to retailers. I imagine if they already have lawyers it is a relatively straightforward thing to do that prevents them losing money.