Landlord Beware! Tales from a Consultant’s Desk – Lease Option Amendment

By Christine Sloan Gillan

I helped a customer negotiate a cell tower lease agreement with an option over 1 year ago. The lawyer for the cell tower tenant called me recently to say they needed to extend the option and asked if he should send the cell tower lease amendment to me or to the cell tower landlord. I asked why he did not simply exercise the option. He replied that they had neglected to timely exercise the option so that an amendment would be necessary to make the extension retroactive.

Thankfully my customer wanted me to review the amendment for him. During my review I noticed that there was a whole lot more going on than exercising the option retroactively. Namely, the cellular tenant had a survey conducted to define the leased premises and easement areas and had increased the size of both without asking the cell tower landlord to agree to the increase in size! The amendment included the new legal description from the survey, which had not even been supplied to the landlord!

Also, the amendment not only exercised the option retroactively but added 2 more options!

I never cease to be amazed at what these guys try to get away with!