[RPPTL LandTen] Question from David Wiener

[Kristen Jaiven]

David Wiener asked me to post the following question to the leasing
committees.


*Subject: Continuing Effectiveness of on Shopping Center of Use Restriction
under Lease of Outparcel that has been sold*


*Dear Committee Members,*



*I would be very grateful for any insights on the following fact pattern
and question:*



   1. *Landlord owns a shopping center that contains an in-line retail
   building and an outparcel on which a free-standing building has been
   constructed*
   2. *Landlord leases the outparcel and the free-standing building thereon
   to a tenant. *
   3. *The outparcel lease contains a provision imposing various use
   restrictions on the balance of the shopping center*
   4. *Neither the outparcel lease, nor any  memorandum thereof, is
   recorded in the Public Records*
   5. *Subsequently, Landlord plats the shopping center, thereby
   subdividing it into two separate legal lots, namely the outparcel, as one
   lot, and the balance of the shopping center (the “Core Parcel”), as the
   other lot. *
   6. *In conjunction with the platting process, Landlord records a
   Declaration of Reciprocal Easements and Restrictive Covenants (the “REA”)
   that encumbers both the outparcel and the Core Parcel*
   7. *Landlord sells and conveys the outparcel to a third party and as
   part of the transaction, Landlord assigns all of its rights under the
   outparcel lease to the purchaser, who assumes the lease effective as of the
   closing date*
   8. *Nothing in the conveyancing documents – and nothing in the REA -
   imposes any use restrictions on the Core Parcel (although the REA does
   impose use restrictions on the outparcel) – and nothing in the conveyancing
   documents and nothing in the REA purports to continue the effectiveness of
   the use restrictions in the outparcel lease as an on-going encumbrance on
   the Core Parcel*



*Here is my question: *



*Since, presumably, the owner of the Core Parcel ceases to be the
“landlord” under the outparcel lease upon the closing of the sale of the
outparcel to the third party, is the owner of the Core Parcel still bound
by the use restrictions that are contained in the outparcel lease?*



*Please let me have your thoughts*



*Thanks very much.*



*___________________________*









David J. Wiener, Esq.

David J. Wiener, P.A.

3200 N. Military Trail

Suite 400

Boca Raton, FL 33431

Telephone:  561-989-2910

Facsimile:  561-361-8898

Email:  dwiener at woolbright.net



Kristen King Jaiven, Esq.

General Counsel

The Signature Real Estate Companies

901-C Clint Moore Road

Boca Raton, FL 33487

Ph: 561.705.0140

Direct Line: 561-300-6921

Email: Kristen at quadcompanies.com

www.SignatureRealEstateCompanies.com
<http://www.signaturerealestatecompanies.com/>



[image: Signature Partners] <http://mysignaturenetwork.com/>

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