What legal points should I verify before signing a commercial lease agreement in California?

Before signing a California commercial lease, you must verify the written terms for rent, maintenance, use, and exit strategies, ensuring they match all verbal agreements and comply with state and local laws. Here are the key legal points to verify: Step 1: Confirm All Promises are in Writing Under California's Statute of Frauds (Civil Code § 1624), any lease for a term longer than one year must be in writing to be enforceable. Collect the final lease draft and ensure every promise the landlord made, from parking rights to renovation allowances, is explicitly included. Verbal agreements are not sufficient. Step 2: Verify Permitted Use and Zoning Contact your local city or county planning department to confirm that your specific business operations are permitted under the property’s zoning regulations. Do not rely solely on the landlord's assurances. A lease for a use that is not legally permitted is a major liability. Step 3: Review ADA and Accessibility Responsibility The lease must state who is responsible for ensuring the property complies with the Americans with Disabilities Act (ADA). Under Civil Code § 55.53, you must be notified whether the property has undergone a Certified Access Specialist (CASp) inspection. Ask the landlord for a copy of any CASp report to understand potential compliance costs. Step 4: Clarify Security Deposit Terms Review the lease section on security deposits. California Civil Code § 1950.7 allows landlords significant freedom in commercial leases to define how a deposit can be used and when it must be returned. Verify the conditions for deductions and the exact timeline for the deposit's return after you vacate. Step 5: Scrutinize Default and Remedy Clauses Look for language related to what happens if you break the lease. Specifically, check for clauses referencing Civil Code § 1951.4, which allows a landlord to continue the lease after you leave and sue for rent as it becomes due. Negotiate to limit this significant potential liability. Important considerations: Understand the difference between a "gross lease" (landlord pays expenses) and a "triple net" (NNN) lease, where you pay for property taxes, insurance, and maintenance. Also, carefully review clauses on assignment and subletting, as they determine your ability to exit the lease early. Note: Landlord-provided form leases are written to protect their interests, not yours. Never sign an agreement containing terms you do not fully understand. What you sign will be legally binding. This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney.