Property Management
In Rhode Island, what is 'subrogation waiver' in a commercial lease?
AThe landlord waives the right to collect rent
BBoth landlord and tenant waive the right of their respective insurance companies to sue the other party for insured losses✓ Correct
CThe tenant waives security deposit rights
DThe landlord waives the right to inspect the premises
Explanation
A mutual waiver of subrogation in a commercial lease prevents each party's insurance company from suing the other party (and their insurer) to recover insured losses. This promotes cooperation and prevents insurance litigation between landlord and tenant.
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Key Terms to Know
Right of First Refusal
A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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