The "Compliance with Laws" provision of a commercial lease typically requires the tenant to perform potentially expensive replacements, alterations, or improvements of the leased premises. It may require the tenant to comply with existing or future laws relating to the leased premises such as earthquake retrofitting, asbestos abatement, or compliance with the Americans with Disabilities Act. In some instances the landlord agrees to bear the burden of compliance with these laws. If the tenant is to be responsible for compliance with laws, the landlord should represent and warrant to the tenant in the lease that the building is in compliance with all presently existing laws. A tenant should try and place a cap on its annual exposure to this provision.
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