ContractsGLACalifornia
CAWestEmployee-FriendlyHigh Risk

Ground Lease Agreementin California

A long-term lease of land only, under which the tenant constructs and owns improvements on the land for the lease duration, with improvements reverting to the landlord upon expiration. California's employee-friendly legal climate creates specific considerations for GLA drafting and enforcement.

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Legal Climate
Employee-Friendly
Non-Competes
Restricted
Governing Law
Very Popular
Key City
Los Angeles

California Contract Law

Key Legal Fact

California broadly prohibits employee non-compete agreements under Business & Professions Code § 16600.

Notable GLA Law

SB 699 (2023) makes non-competes unenforceable even if signed in other states, with penalties for attempting to enforce.

Key Clauses to Review

1
Leasehold Financing Rights
Requires California-specific drafting under employee-friendly legal standards.
2
Reversion of Improvements
Requires California-specific drafting under employee-friendly legal standards.
3
Subordination and Non-Disturbance
Requires California-specific drafting under employee-friendly legal standards.
⚠ Common Issue
Lender concerns about leasehold financing without SNDA protections

Major Industries in California

TechnologyEntertainmentAgricultureFinance

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