Commercial Deed Restrictions and Commercial Management Agreements


When commercial property is developed and different entities or individuals own various parcels that share a common parking lot or other common areas, commercial property owners often enter into agreements to establish restrictions for the use of the property and to establish a common area maintenance (CAM) regime. These rules are often created in the form of deed restrictions and are recorded against the property. The deed restrictions generally run with the land and bind all successive title owners. The agreements ensure that each property owner is paying a share of the maintenance expenses and that the property is maintained to certain standards. Commercial deed restrictions help develop a predictable management scheme when the property is developed, but problems typically arise as the commercial property is bought and sold and the use of the property and character of the surrounding area changes.

Deed restrictions are the equivalent of a contract and limit the intended use of the property. If you are considering purchasing or leasing a commercial or retail space, you should review in detail any deed restrictions that may limit your use of the property. If you are a commercial property owner and are having difficulties with the other property owners concerning the pro-rata share of CAM or other maintenance responsibilities related to the use of the property, you should consult an attorney to discuss your legal claims and rights. The Bainbridge Law Firm, L.L.C., has successfully represented commercial landlords and tenants in disputes related to the use and maintenance of the property. If you have an issue related to commercial deed restrictions, commercial management agreements or the general use and regulation of commercial property, The Bainbridge Law Firm, L.L.C., can assist you.

This article is not intended to be specific legal advice. It only provides general legal information. You should consult an Arizona licensed attorney if you have a legal issue. The Bainbridge Law Firm, L.L.C., is experienced in this area of law and are available for consultation. You may contact our Phoenix office at 602-902-1930.