Tennessee Construction Law Blog

Zoning laws are important to be familiar with and to understand because they can have a dramatic impact on the use of property. You may have many questions about zoning laws and how they work. Zoning laws cover everything ranging from specific requirements as to the types of buildings allowed on a piece of property to size and height limits for the buildings; the number of rooms for the buildings on the piece of property; restrictions on additional buildings and building setbacks from streets and other boundaries; and the location of utility lines.

In its most basic sense, zoning laws regulate the use and development of real estate. Zoning laws are considered land-use regulations and, as such, have a significant impact on an owner's use and development of their property. Zoning laws generally divide property into categories to provide uniformity, with some exceptions such as mixed-use projects, in certain areas. The most basic categories include residential, commercial and industrial zones.

Construction defects can be a serious financial concern and may cause other problems as well, which is why it is helpful to understand what the term refers to and what the available remedies for construction defects are. Construction defects refer to deficiencies related to: design; planning; supervision; inspection; construction; or management of construction of a building. When the structure is not constructed in a reasonably workmanlike manner, or fails to perform in a manner reasonably expected by the buyer, a claim for construction defects may exist.

Construction defects can be costly and can include problems such as: the structural integrity of the building; expansive soil problems; water intrusion which can result in mold; thermal and moisture protection issues; mechanical and electrical concerns; problems with the doors, windows or glass; or issues and concerns with finishes, among other possible concerns. In general, the courts recognize four categories of construction defects, including: design defects; material defects; construction defects; and subsurface defects.

In Tennessee, in order to obtain a materialmen's lien, often referred to as a mechanic's lien, specific actions must have taken, or are currently taking place. First, the party making the claim must have performed an action that contributed to the improvement of the property. This means that he or she must have done something that created a permanent change. The obvious ideas of this would be demolition, or construction of new rooms or buildings. However, it can also include changes to landscaping.

In addition, a person or business who not only performed the action but supplied the materials to perform the action can also claim a lien against the property to ensure payment for those materials.

For owners of commercial retail property it can be frustrating when tenants abruptly close up shop and file for bankruptcy. Many times these situations result in months of lost rental income for the property owner. If the tenant files a strait bankruptcy such as Chapter 7, a rental space cannot be leased to a new owner until a bankruptcy discharge is issued. This can take three to four months in a simple bankruptcy. If additional issues or objections arise, the waiting period can be even longer. When a tenant files a reorganization plan such as Chapter 11 bankruptcy, and chooses to assume a lease, it can still take months before plan payments begin disbursement and monthly rents begin flowing again.

As a commercial property owner, this is one of the reasons to ensure that you find and retain the best tenants possible. In addition, upon receiving notification that a tenant has filed bankruptcy, it is in the property owner's best interest to retain a knowledgeable attorney early in the process. He or she can assist and offer advice in the assumption or rejection of leases, filing a Motion to Terminate an Automatic Stay, or negotiating new contract terms.