The remedy of distress provides a landlord with the right to seize a tenant’s goods on the premises leased to the tenant and to sell them to satisfy any arrears of rent owed to the landlord. In general, outside of bankruptcy, if a landlord and a secured lender enforce their rights concurrently, a landlord’s rights of distress in its tenant’s goods will have priority over the secured lender’s rights in the goods. For that reason, a lender contemplating providing a loan to a borrower/tenant that has collateral on leased premises will often require as a condition precedent to the loan that the borrower obtain from its landlord a landlord waiver. This article briefly discusses some of the key provisions a lender will require in a landlord waiver and some of the major points that arise in negotiating landlord waivers.

type Negotiating Landlord Waivers