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Tenant Improvement

noun

Refers to a situation where a party renting the property has authorized an improvement rather than the property's owner. This could have a strong effect on whether lien rights will be available.

A tenant improvement is a construction project that is commissioned by the tenant/lessee as opposed to the property owner. A mechanics lien filed on these types of projects, may be limited to a claim against the leasehold interest of the tenant instead of the property itself. There are a number of factors to consider when determining if the project is a tenant improvement such as the terms of the lease, actual knowledge by the owner, etc.

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