Condemnation and Destruction Clause Samples
The Condemnation and Destruction clause outlines the procedures and rights of the parties if the leased property is condemned by a government authority or destroyed by events such as fire or natural disaster. Typically, this clause specifies whether the lease will terminate automatically or if the landlord must repair or rebuild the premises, and may address the distribution of any insurance proceeds or compensation received from the government. Its core function is to provide clarity and allocate risk between landlord and tenant in the event the property becomes unusable due to condemnation or destruction, ensuring both parties understand their rights and obligations in such circumstances.
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Condemnation and Destruction. (a) If, prior to the Closing Date, all or any significant portion (as defined in this Section) of the Property is taken by eminent domain (or, if prior to the Closing Date, any eminent domain proceeding with respect to any significant portion of the Property has been commenced or Seller has received written notice threatening to commence any such eminent domain proceeding), Seller shall notify Purchaser thereof promptly after obtaining knowledge thereof and either Purchaser or Seller shall have the right to terminate this Agreement, which termination shall be effected by giving notice to the other not later than ten (10) days after the giving of Seller's notice. For the purposes hereof, a "significant portion" of the Property shall mean such a portion of the Property as shall have a value, as reasonably determined by Seller, in excess of ten (10%) percent of the Purchase Price. If either party elects to terminate this Agreement as aforesaid, the provisions of Section 16(b) shall apply. If neither Seller nor Purchaser elects to terminate this Agreement as aforesaid, or if an "insignificant portion" (i.e., anything other than a significant portion) of the Property is taken by eminent domain (or becomes the subject of a pending taking), there shall be no abatement of the Purchase Price and Seller shall assign to Purchaser (without recourse) at the Closing the rights of Seller to the awards theretofore received, if any, for the taking, and Purchaser shall be entitled to all rights of Seller under the Loan Documents, if any, to receive and keep all awards for the taking of the Property or such portion thereof.
(b) If, prior to the Closing Date, a material part (as defined in this Section) of the Property is destroyed or damaged by fire or other casualty, Seller shall promptly notify Purchaser thereof and either Purchaser or Seller shall have the right to terminate this Agreement, which termination shall be effected by giving notice to the other not later than ten (10) days after the giving of Seller's notice. For the purposes hereof, a "material part" of the Property shall mean a part of the Property as shall have a value, as reasonably determined by Seller, in excess of ten (10%) percent of the Purchase Price. If either party elects to terminate this Agreement as aforesaid, the provisions of Section 16(b) shall apply. If neither Seller nor Purchaser elects to terminate this Agreement as aforesaid, or if there is damage to or destruction of an "immaterial part"...
Condemnation and Destruction. (a) If, prior to the Closing Date, the Property, or any material part of any Property, is taken by eminent domain (or is the subject of a pending or contemplated taking which has not been consummated), the Partnership shall notify Home Properties of such fact, and Home Properties shall have the option (which option shall be set forth in a notice from Home Properties to the Partnership given not later than fifteen (15) business days after receipt of the notice from the Partnership):
(i) to terminate this Agreement, in which event, the Deposit shall be returned to Home Properties, and, thereafter, this Agreement shall be deemed to be null, void and of no further force or effect between the parties (other than with respect to the indemnities and agreements that expressly survive termination of this Agreement); or
(ii) to accept the assignment of the Interests, without abatement of the Consideration, in which event the Partnership shall assign and turn over to Home Properties at the Closing, and Home Properties shall be entitled to receive and keep, the Partnership's Interests, if any, in all amounts awarded, or to be awarded, as the result of the taking.
(b) If, prior to the Closing Date, all or any material part of any Property is damaged or destroyed by fire or other casualty, the Company shall notify Home Properties of such fact, and Home Properties shall have the option (which option shall be set forth in a notice from Home Properties to the Company given not later than fifteen (15) business days after receipt of the notice from the Company):
(i) to terminate this Agreement, in which event, the Deposit shall be returned to Home Properties, and, thereafter, this Agreement shall be deemed to be null, void and of no further force or effect between the parties (other than with respect to the indemnities and agreements that expressly survive termination of this Agreement); or
(ii) to accept the assignment of the Interests without abatement of the Consideration, in which event the Partnership shall assign to Home Properties, at the Closing, all of the right, title and interest of the Partnership, if any, in and to the insurance proceeds awarded or to be awarded to the Company as the result of such damage or destruction.
(c) In the event there is damage to or destruction of an immaterial part of the Property by fire or other casualty, such damage or destruction shall, subject to receipt of insurance proceeds, be repaired promptly by the Company, and in the event...
Condemnation and Destruction. 15 17.1 Eminent Domain or Taking. . . . . . . . . . . . . . . . . . . . . . 15
Condemnation and Destruction. 15 17.1 EMINENT DOMAIN OR TAKING. . . . . . . . . . . . . . . . . . . . . . 15 17.2 DAMAGE OR DESTRUCTION . . . . . . . . . . . . . . . . . . . . . . . 16
Condemnation and Destruction. 11.1 If the whole of the Demised Premises, or so much thereof, including however, a portion of the buildings, structures and improvements, shall be taken or condemned for a public or quasi-public use or purpose by any competent authority, and as a result thereof the balance of the Demised Premises cannot, in the judgment of Tenant, be used for the same purpose as expressed in Section 5.1 hereof, then the term of this Lease shall terminate when possession of the Demised Premises shall be so taken and surrendered, and any award, compensation or damages shall be paid to and be the sole property of Landlord (except for that portion allocable to Tenant's machinery, equipment, trade fixtures and personality).
11.2 If a material part of the Demised Premises shall be so taken or condemned, as determined by Tenant in its reasonable discretion, Tenant shall have the option to terminate this Lease. If, as a result of such partial condemnation, Tenant determines, in its reasonable discretion, that the balance of the Demised Premises can be used by Tenant for the same purpose as expressed in Section 5.1 hereof, then Tenant shall be entitled to have the Rent, additional rent, real estate taxes and other obligations hereunder adjusted to reflect limitations in space available for Tenant's use and Landlord shall be entitled to retain the entire award; provided, however, that Landlord shall repair and restore the Demised Premises and all buildings, structures and improvements thereon to a complete architectural unit, and provided further that if the amount of the award shall be insufficient for such repairs or restoration, then Tenant shall not be responsible for the amount of the deficiency.
11.3 In the event of damage to or destruction of an immaterial part of the buildings, structures or improvements located on the Demised Premises by fire, windstorm, or other casualty, Landlord shall cause the Demised Premises to be repaired, restored or rebuilt with all reasonable dispatch. Any insurance proceeds covering such casualty shall be made available to Landlord for such repair or restoration.
11.4 In the event of damage to or destruction of a material part of the Demised Premises or the buildings, structures or improvements located on the Demised Premises by fire, windstorm, or other casualty, as reasonably determined by Tenant, Tenant shall have the option to either (i) terminate the Lease, in which event insurance proceeds covering such casualty (excluding insurance procee...
Condemnation and Destruction. 1. If, prior to the Closing Date, all or any portion of the Premises is taken by eminent domain or condemnation (or is the subject of a pending or contemplated eminent domain or condemnation proceeding which has not been consummated), Sellers shall notify CSCP of such fact and CSCP shall have the option (which option shall be set forth in a notice from CSCP to Sellers given not later than thirty (30) days after receipt of Sellers' notice):
(a) to (i) with respect to the Premises located in Mechanicsburg, Pennsylvania only, remove such Premises from the Premises being conveyed pursuant to this Agreement and receive a corresponding reduction in the Consideration, or (ii) terminate this Agreement by written notice delivered to Sellers (in which event the Title Company shall return the Required Deposit to CSCP and no party hereto shall have any further obligations in connection herewith except under those provisions that expressly survive a termination of this Agreement); or
(b) to accept title to the Premises or the Interests in the RVG Entity that owns such Premises, as applicable, without any abatement of the Consideration.
2. In the event of the taking or pending or contemplated taking of all or any portion of the Premises, and CSCP elects to accept title to the Premises or the Interests in the RVG Entity that owns such Premises, (i) Sellers shall be entitled to any and all amounts awarded and received prior to Closing and (ii) with respect to amounts not received prior to Closing, Sellers shall assign over to CSCP at the Closing, and CSCP shall be entitled to keep, all amounts to be awarded to Sellers as the result of the taking. In either of such events, (a) Sellers shall not, prior to Closing, settle any action or claim with respect to any eminent domain or condemnation proceeding without CSCP's prior written consent (not to be unreasonably withheld) and (b) Sellers agree to cooperate with CSCP in good faith in connection with all eminent domain and condemnation proceedings including, without limitation, executing all documents and instruments necessary to allow CSCP, following the Closing, to settle all actions and claims and collect all sums in connection therewith.
3. If, prior to the Closing Date, all or any "material" portion of the Premises is damaged or destroyed or otherwise affected by a fire or other casualty, Sellers shall notify CSCP of such fact and CSCP shall have the option (which option shall be set forth in a written notice from CSCP to...
Condemnation and Destruction. In the event, at any time between the Effective Date and the Closing, (a) all or any material portion of the Property is condemned by any legally constituted authority for any public use or purpose, or (b) any improvements located on the Property are damaged or destroyed by whatever cause (other than the actions or inactions of the Purchaser or its agents), then Purchaser may elect either: (i) to terminate this Agreement, in which event the Renovations Payment paid by Purchaser shall be immediately refunded to Purchaser, and neither Purchaser nor Seller shall have any further liabilities, obligations or rights with regard to this Agreement, which shall become null and void and of no further force and effect; or (ii) to collect all proceeds from any condemnation or from any insurance policies insuring the improvements located on the Property from damage or destruction up to the amount of the Purchase Price and have the terms of this Agreement remain in full force and effect and binding on the parties hereto.
Condemnation and Destruction. 13 14 XI.1 If the whole of the Demised Premises, or so much thereof, including however, a portion of the buildings, structures and improvements, shall be taken or condemned for a public or quasi-public use or purpose by any competent authority, and as a result thereof the balance of the Demised Premises cannot, in the judgment of Tenant, be used for the same purpose as expressed in Section 5.1 hereof, then the term of this Lease shall terminate when possession of the Demised Premises shall be so taken and surrendered, and any award, compensation or damages shall be paid to and be the sole property of Landlord (except for that portion allocable to Tenant's machinery, equipment, trade fixtures and personalty).
Condemnation and Destruction. 40 ARTICLE XVI: Closing Costs............................................42 ARTICLE XVII: Sellers' Defaults........................................43
Condemnation and Destruction. A. For purposes of this Article 18, a “Significant Portion of the Property” shall mean either (a) with respect to damage by fire or other casualty to the Property or a portion thereof, damage requiring repair costs in excess of an amount equal to ten percent (10%) of the Purchase Price, as such repair costs are reasonably estimated by Seller, or (b) with respect to a condemnation or sale in lieu of condemnation, where the reasonably estimated proceeds from such condemnation or sale exceeds an amount equal to ten percent (10%) of the Purchase Price or such condemnation or sale would have a material and adverse effect on access to the Improvements as reasonably determined by Seller.