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Ground Lease Dispute - Need advice

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handeone

Junior Member
Ground Lease Dispute What is the name of your state? California
I have a fifty year ground lease, which started in 1983. It states that I may use my buildings as collateral for a loan and that the Lessor will sign a Lender's Agreement, which would not be unreasonably withheld. I am in the process of refinancing an existing loan and my bank is requiring an updated Lender's Agreement. Upon reviewing the Lender's Agreement prepared by the bank, the Lessor has discovered areas of the lease which they wish to clarify in regards to percentage overages and reimbursements for property taxes. They are withholding the Lender's Agreement required for my loan while they pursue these issues. My loan is being put in jeopardy as the bank must close loan within specific time period or it has to be redone. It has now been seven months I have been trying to get them to sign agreement for the bank. Bank is hanging in there, but barely. Basically, I am told by Lessor, that when I agree to provide them the information they want, they will reach an agreement with the bank. I say this is unreasonably withholding. I feel they are coercing me to revisit areas of my lease they wish to more clearly define. I am considering exercising the arbitration clause in my lease. What are my chances of getting the lessor to sign my Lender's Agreement before I lose my loan and without looking at these other issues which have been ignored for at least 7 years. Also, what does the arbitration process involve. Do I need to get a lawyer in addition to an arbitrator? Is this a good case for arbitration? Any advice you can give me would be appreciated. Thank you.

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JETX

Senior Member
handeone said:
Ground Lease Dispute What is the name of your state? California
I have a fifty year ground lease, which started in 1983. It states that I may use my buildings as collateral for a loan and that the Lessor will sign a Lender's Agreement, which would not be unreasonably withheld. I am in the process of refinancing an existing loan and my bank is requiring an updated Lender's Agreement. Upon reviewing the Lender's Agreement prepared by the bank, the Lessor has discovered areas of the lease which they wish to clarify in regards to percentage overages and reimbursements for property taxes. They are withholding the Lender's Agreement required for my loan while they pursue these issues. My loan is being put in jeopardy as the bank must close loan within specific time period or it has to be redone. It has now been seven months I have been trying to get them to sign agreement for the bank. Bank is hanging in there, but barely. Basically, I am told by Lessor, that when I agree to provide them the information they want, they will reach an agreement with the bank. I say this is unreasonably withholding. I feel they are coercing me to revisit areas of my lease they wish to more clearly define. I am considering exercising the arbitration clause in my lease. What are my chances of getting the lessor to sign my Lender's Agreement before I lose my loan and without looking at these other issues which have been ignored for at least 7 years. Also, what does the arbitration process involve. Do I need to get a lawyer in addition to an arbitrator? Is this a good case for arbitration? Any advice you can give me would be appreciated. Thank you.
Your case is already complex and detailed.... and will only grow more so as it progresses. Get an attorney involved... NOW.
 

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