Required Commercial Lease Disclosures: AB 2093
Back in 2016 Governor Jerry Brown signed AB 2093 into California law. The new legislation amended SB 1186 to incorporate a new disclosure that must be included in all commercial leases executed after January 1, 2017. The objective of the CASp disclosure is to establish a dialog between prospective tenants and landlords about: ADA violations that exist, who is responsible for accessibility improvements and which party assumes liability in the event that an ADA lawsuit is filed.
It is common for existing facilities to have construction-related barriers to accessibility. Some properties only have small barriers such as non-compliant signage that can be easily replaced. Others have more significant barriers like non-compliant parking, inaccessible entrances and restrooms that lack accessible features. Whenever a facility fails to fully comply with the ADA Standards or local accessibility requirements, there is legal exposure that all parties should be aware of. AB 2093 provides notice to the tenant that a CASp inspection is a valuable resource to identify those barriers and mitigate the risks of an ADA lawsuit.
The lease disclosure required by AB 2093 does the following:
Requires commercial property owners to disclose if a CASp Inspection has already been performed.
If a CASp Inspection has been performed at the facility, the tenant must be provided with a copy of that report for review. The CASp Report must be provided to the tenant at least 48 hours prior to the execution of the lease. Failure to do so will grant the tenant the right to rescind the lease, based on the information contained within the report, for 72 hours after the execution of the agreement.
If the facility has not be CASp Inspected, the lease must disclose that upon request of the lessee or tenant, the property owner may not prohibit a CASp inspection of the subject premises and that the parties must mutually agree on the arrangements for the time and manner of the inspection, the payment of the associated fee, and the cost of making repairs, as specified.
Establishes a presumption that making repairs or modifications necessary to correct violations of construction-related accessibility is the responsibility of the commercial property owner or lessor unless otherwise agreed upon by the parties to the lease or rental agreement.
While it may seem that the disclosure favors the tenant’s interests, it actually provides a mutual benefit. Many high frequency plaintiffs name both the tenant and landlord in ADA lawsuits. AB 2093 ensures that both parties are fully aware of the costs and risks associated with any barriers to accessibility at the subject facility. It is always better to negotiate terms before an issue arises so if you are a commercial property owner operating in California, we highly recommend hiring a CASp to inspect your property. In addition to taking a proactive approach to the lease disclosure, a CASp inspection will likely include an evaluation of the “Path of Travel” to the new tenant’s space. Tenant Improvements and alterations typically require Path of Travel improvements as a condition of final inspection by the local building official.
If you are interested in having your facility evaluated by a Certified Access Specialist (CASp), please fill out our Free Estimate form.
