We were about to sign a 5 year lease for a business that is both commercial and residential zoned and the lease stated that we had to pay the property taxes every year
It would not be unlawful for a tenant and a landlord to agree that the tenant would pay the property taxes as a part of rent.
In fact, in commercial leases, the tenants often pay not only a base rent but would also pay additional rents that include the property taxes and other expenses that the landlord pays.
You should carefully review your agreement to see what you are agreeing to do.
That's what is called a "gross" lease, and at least in Georgia, it is perfectly legal. Based on this real estate market though, you should have some latitude for negotiations to avoid such a provision.
You should also consult with a local real estate attorney before signing the lease. It may cost you a few hundred dollars now, but it could potentially save you thousands of dollars down the road and a lot of stress. There are a lot of provisions in commercial leases that individuals oftentimes overlook, such as personal guarantees, that can end up being quite problematic if the business does not do as well as anticipated.
DISCLAIMER: Although I am an attorney, absent a signed retention and engagement letter, I am not your attorney. There are no exceptions to this rule. Moreover, you shall not rely on the information I am providing you, as it is only for your general knowledge and educational purposes. Indeed, my analysis is always based on the laws of Georgia, and your jurisdiction might have substantially different laws and requirements. As such, you should always contact an attorney that practices in your local area.
