SECTIONS 1995.210-1995.270 - California Statutes

CIVIL CODE

SECTION 1995.210-1995.270

1995.210. (a) Subject to the limitations in this chapter, a lease
may include a restriction on transfer of the tenant's interest in the
lease.
(b) Unless a lease includes a restriction on transfer, a tenant's
rights under the lease include unrestricted transfer of the tenant's
interest in the lease.

1995.220. An ambiguity in a restriction on transfer of a tenant's
interest in a lease shall be construed in favor of transferability.

1995.230. A restriction on transfer of a tenant's interest in a
lease may absolutely prohibit transfer.

1995.240. A restriction on transfer of a tenant's interest in a
lease may provide that the transfer is subject to any express
standard or condition, including, but not limited to, a provision
that the landlord is entitled to some or all of any consideration the
tenant receives from a transferee in excess of the rent under the
lease.

1995.250. A restriction on transfer of a tenant's interest in a
lease may require the landlord's consent for transfer subject to any
express standard or condition for giving or withholding consent,
including, but not limited to, either of the following:
(a) The landlord's consent may not be unreasonably withheld.
(b) The landlord's consent may be withheld subject to express
standards or conditions.

1995.260. If a restriction on transfer of the tenant's interest in
a lease requires the landlord's consent for transfer but provides no
standard for giving or withholding consent, the restriction on
transfer shall be construed to include an implied standard that the
landlord's consent may not be unreasonably withheld. Whether the
landlord's consent has been unreasonably withheld in a particular
case is a question of fact on which the tenant has the burden of
proof. The tenant may satisfy the burden of proof by showing that, in
response to the tenant's written request for a statement of reasons
for withholding consent, the landlord has failed, within a reasonable
time, to state in writing a reasonable objection to the transfer.

1995.270. (a) The Legislature finds and declares:
(1) It is the public policy of the state and fundamental to the
commerce and economic development of the state to enable and
facilitate freedom of contract by the parties to commercial real
property leases.
(2) The parties to commercial real property leases must be able to
negotiate and conduct their affairs in reasonable reliance on the
rights and protections given them under the laws of the state.
(3) Until the case of Kendall v. Ernest Pestana, Inc., 40 Cal. 3d
488 (1985), and its predecessor, Cohen v. Ratinoff, 147 Cal. App. 3d
321 (1983), the parties to commercial real property leases could
reasonably rely on the law of the state to provide that if a lease
restriction requires the landlord's consent for transfer of the
tenant's interest in the lease but provides no standard for giving or
withholding consent, the landlord's consent may be unreasonably
withheld.
(4) The Kendall and Cohen decisions reversed the law on which
parties to commercial real property leases executed before September
23, 1983, the date of the Cohen decision, could reasonably rely,
thereby frustrating the expectations of the parties, with the result
of impairing commerce and economic development.
(b) Section 1995.260 applies to a restriction on transfer executed
on or after September 23, 1983. If a restriction on transfer
executed before September 23, 1983, requires the landlord's consent
for the tenant's transfer but provides no standard for giving or
withholding consent, the landlord's consent may be unreasonably
withheld. For purposes of this subdivision, if the terms of a
restriction on transfer are fixed by an option or other agreement,
the restriction on transfer is deemed to be executed on the date of
execution of the option or other agreement.