This chapter applies to a restriction on use of leased property by a tenant under a lease of real property for other than residential purposes.
Use RestrictionsGeneral Provisions
Section § 1997.010
This law section deals with rules about how tenants can use rented property when it's leased for non-residential purposes, like businesses or offices.
tenant lease restrictions non-residential property commercial lease
Section § 1997.020
This section explains the meanings of key terms used in leases for non-residential properties. A 'landlord' can also be a tenant who is subleasing the property. A 'lease' refers to a lease or sublease, including any changes to it, for non-residential purposes. A 'restriction on use' is a lease term that limits or defines how the tenant can use the property. Lastly, a 'tenant' also includes subtenants or those who have taken over the lease.
As used in this chapter:
(a)CA Civil Law Code § 1997.020(a) “Landlord” includes a tenant who is a sublandlord under a sublease.
(b)CA Civil Law Code § 1997.020(b) “Lease” means a lease or sublease of real property for other than residential purposes, and includes modifications and other agreements affecting a lease.
(c)CA Civil Law Code § 1997.020(c) “Restriction on use” means a provision in a lease that restricts the use of leased property by a tenant, whether by limiting use to a specified purpose,
mandating use for a specified purpose, prohibiting use for a specified purpose, limiting or prohibiting a change in use, or otherwise.
(d)CA Civil Law Code § 1997.020(d) “Tenant” includes a subtenant or assignee.
landlord sublandlord sublease
Section § 1997.030
This law makes it clear that nothing in this chapter allows for restrictions that are already banned by other laws.
Nothing in this chapter authorizes a restriction on use that is otherwise prohibited by law.
restriction on use prohibited by law legal restrictions
Section § 1997.040
This statute explains how rental losses are calculated if a lease is broken and the lease property has restrictions on its use. If ending the lease could have reasonably avoided these losses, then the usable potential of the property is considered. If a lease limits how the property is used, this is factored into the calculation unless the tenant can prove these limits are unfair. The law also allows a lease to continue even if the property use is restricted, as long as these restrictions are reasonable and enforceable. Tenants can challenge the fairness of these restrictions by considering the circumstances related to the specific property and surrounding buildings.
(a)CA Civil Law Code § 1997.040(a) For the purpose of subdivision (a) of Section 1951.2 (damages on termination for breach), the amount of rental loss that could be or could have been reasonably avoided is computed by taking into account any reasonable use of the leased property. However, if the lease contains a restriction on use that is enforceable under this chapter, the computation shall take into account the restricted use of the property except to the extent the tenant proves that under all the circumstances enforcement of the restriction would be unreasonable. The circumstances include, but are not limited
to, those involving both the leased property and any building or complex in which it is located.
(b)CA Civil Law Code § 1997.040(b) The remedy described in Section 1951.4 (continuation of lease after breach and abandonment) is available notwithstanding the presence in the lease of a restriction on use of the leased property. The restriction on use applies under Section 1951.4 if it is enforceable under this chapter except to the extent the tenant proves that under all the circumstances enforcement of the restriction would be unreasonable. The circumstances include, but are not limited to, those involving both the leased property and any building or complex in which it is located.
rental loss avoidance lease restrictions enforceable restrictions
Section § 1997.050
This law says that a certain set of rules applies to any lease agreements made before, on, or after January 1, 1992, unless there's an exception mentioned in another section (1997.270).
Except as provided in Section 1997.270, this chapter applies to a lease executed before, on, or after January 1, 1992.
lease agreements before January 1 1992
