Review key provisions before leasing shared space

Contract Language. By Steven M. Harris, AMNews contributor. Nov. 3, 2003.

CONTRACT LANGUAGE

A column examining the ins and outs of contract issues

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Whether you are thinking about leasing office space to another physician or are seeking to rent space, there are several key provisions to consider in reviewing a proposed office time-share lease.

One of the first provisions you should carefully review is possession. You need to ensure that your office time-share lease provides for an exclusive occupancy of the designated space during a specified time period. Also consider including language which enables you to negotiate in the future for additional hours or days. The following is an example of such a provision:

Possession. "Landlord and physician agree that physician shall only have the sole, exclusive and uninterrupted right to possession and use of the premises for five consecutive hours every Monday from 1:00 p.m. to 6:00 p.m. and every Thursday from 9:30 a.m. to 12:30 p.m. of every month during the term of this agreement. Physician may not use the premises for any other day or days of each month during the term of this agreement that are not pre-scheduled with the landlord in advance.

"If physician desires to use the premises for additional hours, the parties shall cooperate with each other to reach an agreement as to the additional hours or day(s) during which physician may use the premises. Such additional use shall have the approval of the landlord in writing not less than 10 working days prior to use and be subject to all provisions of this agreement except that physician shall only be obligated to pay, for each day of such additional use, the pro rata share of the monthly sum. Physician shall pay such additional amount to landlord on the day rent is next due and payable as an additional sum of rent hereunder."