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See some of Saul Fenchel's eminent domain articles covering various subjects in Eminent Domain Condemnation.

If I am an owner, how do leases affect the award?

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Leases will typically contain provisions governing the respective rights of the landlord and tenant in the event of condemnation (i.e., the “condemnation clause”). For example, most leases contain provisions giving the landlord or tenant the option to cancel the lease in the event of a taking1, especially if the taking is substantial as defined by the lease. These lease provisions will provide for allocation of the damages under various circumstances.

1In commercial leases, there is no general concept of “fairness” in the allocation. The literal terms of the lease will govern. Both the lessor and lessee should pay special attention to the drafting of a condemnation clause in a lease.

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