Exemption of lessor from liability: Overview, definition, and example
What is exemption of lessor from liability?
Exemption of lessor from liability refers to a clause in a lease agreement that limits or removes the lessor’s (property owner’s) responsibility for certain types of damages, losses, or injuries that occur on the leased property. This provision is typically included to protect the lessor from being held accountable for incidents beyond their control, such as accidents, injuries, or damages that happen as a result of the tenant’s actions, negligence, or misuse of the property. The exemption usually applies to situations where the lessor has no direct involvement or control over the issue at hand.
For example, in a commercial lease, a lessor may include an exemption from liability for injuries sustained by a tenant or their employees due to a defect that the tenant was responsible for repairing or maintaining.
Why is exemption of lessor from liability important?
The exemption of lessor from liability is important because it helps the lessor avoid financial and legal responsibility for issues that are outside their control or the scope of the lease agreement. This provision typically shifts the burden of liability to the tenant or another responsible party, ensuring that the lessor is not unfairly held accountable for matters related to the tenant’s use of the property or any conditions that the tenant is required to maintain.
For tenants, understanding this exemption is crucial as it means that they may be responsible for maintaining the property, fixing damages, and covering any legal claims arising from accidents or issues related to their use of the premises. This exemption can also affect insurance obligations, as tenants may need to carry liability insurance to cover risks not addressed by the lessor.
Understanding exemption of lessor from liability through an example
Imagine a commercial lease agreement for a retail store. The lease includes an exemption of lessor from liability clause that specifies that the lessor is not responsible for injuries caused by a slip and fall incident on the store’s premises, as long as the accident was not caused by a defect that the lessor was required to repair. If a customer slips on a wet floor inside the store, and the floor had been wet due to the tenant’s negligence in maintaining proper safety, the tenant, not the lessor, would be liable for the injury.
In another example, a residential lease might include an exemption of lessor from liability for damages to the tenant’s personal property due to a natural disaster, such as a flood or earthquake. In this case, the tenant would be responsible for securing renters’ insurance to protect their belongings.
An example of an exemption of lessor from liability clause
Here’s how an exemption of lessor from liability clause might appear in a lease agreement:
“The Lessor shall not be liable for any damages, injuries, or losses occurring on the leased property, including but not limited to those caused by the negligence, failure to maintain, or improper use of the premises by the Lessee, their agents, employees, or invitees. The Lessee agrees to indemnify and hold the Lessor harmless from any claims arising from such incidents.”
Conclusion
Exemption of lessor from liability is a contractual provision that limits the lessor’s responsibility for damages, injuries, or losses that occur on the leased property, particularly when these issues are caused by the tenant’s actions or failure to maintain the property. This clause helps reduce the lessor’s exposure to legal and financial risks and shifts responsibility to the tenant or other responsible parties. For tenants, understanding this exemption is crucial for ensuring that they have the proper insurance and maintenance responsibilities in place to protect themselves and avoid unexpected liabilities.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.