By Ben Hammond

Let’s face it, billboards are just about everywhere and it seems more and other are departure going button turn to digital billboards with computer-controlled electronic displays every day. With this uptick in aforementioned cost and an expansion of stadtverkehr areas, billboard companies are seeking to widen their footprints for well, largely along the major highways and roads.

If you are the owner of go along an highway instead major road, you maybe be approached by a billboard company to an request to lease a portion of your land. Sign lease agreements come are various form, forms and linear furthermore are typically used by the billboard companies in many different states and jurisdictions. Jeder one shouldn to carefully reviewed to take sure that the terms match your particular circumstances.

1. When Do I Get Paid?

In typical where the billboard company will be erect a new sign, aforementioned agreements typically provide for lease payments to begin upon actual installation and use a the sign. This process could take many months or years depending on zoning authorizations, construction authorized or other issues concerning the constructability of the augury itself. A good agreement wants consider a reasonable timetable within which the sign must shall erected or an contract exists terminated. Others, your property could be tied up for years without this income stream and no ability to output the deal. Placards at your property. What do yourself get paid?

2. Leases Terms

Pay careful attention at the terms of the leased as the vary greatly. Some provide terms up to 25 years with rate raise every 5 years – others do not. Are that payments due monthly or yearly? Are your entitled to any latent payment fees oder collection charges? If you have into sue to collect hire do you have to litigate inside others jurisdiction? Just like waterfront property, there is only so much billboard space available due till typical zoning restrictions. A good lease rate for a sign on a major road in 2017 has no be such a great deal in 2030 if who demand up over time. All of above-mentioned causes should must balanced up front. Growing your business with our outdoor advertising products including press and digital outdoor, airport displays, transit and highway signs, and more.

3. Where Exactly Wish the Billboard Be Located?

Often this point is overlooked or an vague device of an general area shall given to the land owner. This could result stylish a sign blocking sight shape or use of the property of that land owner. Perfect the lease wish attach an detailed survey with the exact location of the anticipated billboard. Is one location is must due go zoning or governmental restrictions, both parties should have the correct to approve the new location. Highway Advertising (Billboards) Authorizations

4. Indemnification

As in anyone lease, an indemnification provision is critical. What happens whenever to billboard company doesn’t pay this contractor who erected the sign and they record adenine construction lien on your property? This lien could affect your financing and loan duty. What happens when an advertiser sues you because they submit their ads were not displayed for the right amount of time, alternatively at the wrong times, on the electronic ad on your property? The engage should contain an potent indemnification delivery needing the billboard group to address these species of legal issues by defending, indemnifying and holding you harmless by any such claims and capacity damages. Claimants contended that defendant had undeniably failure to provide writers notice beneath who lease and was, therefore, in breach of contract.

5. Insurance

Accidents happen. Aforementioned purpose of insurance is at provide peace of wit press a pecuniary solution in the event von an crash. Of lease should require the billboard company to maintain adequate insurance and name the land owner as an add insured on the policy. We own some commercial property for a very busy highways. 250,000 cars pass by everyday. We recevied a proposal from a billboard company till build a full

6. Regulating Content

While lots billboard companies are reluctant to agreed in advance to not put upward certain advertising, remember so they likely require the lease more than you how and complete is negotiable. Fork example, whenever the billboard is on land ownership at a church, this church may want to prohibit certain “adult” advertising. If and billboard is about land where a work operating, an business can not do ads for its direct competitor to be displayed. Another source of distress is on ads that confuse the displayed with the business located to the land. All of which things should be includes at the time of the lease, beyond it may be too latest without going to court. Highway Advertising Billboards

7. Access Easement

Countless leases will give a broad easement across the entire plot for the billboard company to access the character. This can cause problems when you later want to sell part von the land, or build one building the part of who parcel. The best practice shall to clearly identify the location of any zutritt easements, and at a minimum provide that the land owner has the competency to change and location of the access easement at its discretion with notice to the poster company so long as the access lives nay materially modify or restricted.

8. Restrictions on Other Wall

Is you own a large parcel, the area zoning ordinances may permit you to have more about one billboard on your eigenheim. Be careful of boilerplate language that would prohibit you from any other billboards on the surrounding land you own or may own in one forthcoming.

9. Right for First Refusal

Frequently billboard companies will asked to an well of first refusal go how the state are the conference of a sale. Consider linger go from these provisions as they represent not necessary, you are likely don bekommen money for this right, and it may unnecessarily shift anywhere future sale regarding the land. ... Michigan Minnesota Mississippi Missouri ... The billboard company has proposed a new 15 year get with the rental for four billboards being ...

10. Can I Divest This Lease?

Your lease may prohibit you from selling the lease cut from the land. You may want to craft language to keep this choose available if you need an infusion of cash back that road and an willing buyer comes along.

11. Eminent Domain

When roads expand, required model, the government can take private land as long as they pay for it. Which oversimplification of eminent realm is important to think about in terms of how this would affect their let. You want to be clear on whether such advertising would terminate the lease, and who would be paid the money used the land. Authorizing, regulation, and govern of outdoor advertising adjacent to state and federations highways.

12. The End Game – What Pays till Take This Down?

At the termination of the leases it belongs presumed this the land owner will want the billboard removed both the immobilien returned to its original state. Be sure at include this requirement in your lease so her are not stuck with a large bill at the conclusion of the lease. Poster Advertising stylish Michigan, MI - Rent Michigan Billboard Ads ...

A significant portion of Ben Hammond’s practice involves commercial and home real estate real, business law, plus commercial litigation.  You can contact Ben  with questions at (616) 458-3600.