Lease after foreclosure

[Tugs]

Florida

I am a new member and this is my first post and I hope this is the correct area to be posting this.

A friend of mine owns a business in Florida, a Tavern, but leases the land and Building. The property and building are in Foreclosure and going up for Auction. He has a Five Year Lease and has been told that his lease will continue to be enforce with the new owners.

I would think that at the minimum he will have to renegotiate and sign a new lease.

So here is my question. Does the new owner have to honor the lease, sign a new lease or could they decide not to deal with my friend and make him move his business to another location?

Thank You in advance,

Tugs

 

[Banned_Princess]

I am a new member and this is my first post and I hope this is the correct area to be posting this.

A friend of mine owns a business, a Tavern, but leases the land and Building. The property and building are in Foreclosure and going up for Auction. He has a Five Year Lease and has been told that his lease will continue to be enforce with the new owners.

I would think that at the minimum he will have to renegotiate and sign a new lease.

So here is my question. Does the new owner have to honor the lease, sign a new lease or could they decide not to deal with my friend and make him move his business to another location?

Thank You in advance,

Tugs

What state is this in?

 

[Tugs]

I just added the state which is Florida.

Sorry I should have known that the state is required as each state is different.

 

[Banned_Princess]

I just added the state which is Florida.

Sorry I should have known that the state is required as each state is different.

commercial leases are different then residential leases. Its really all about what is in the lease.

as far as I know, the bank has to honor the lease agreement, and when he is directed to do so, he should pay the rent to the bank.

The bank might want to have the property vacated (probably not if the business is good and profitable) then your friend should expect some sort of buy out.

 

[Banned_Princess]

Florida

I am a new member and this is my first post and I hope this is the correct area to be posting this.

A friend of mine owns a business in Florida, a Tavern, but leases the land and Building. The property and building are in Foreclosure and going up for Auction. He has a Five Year Lease and has been told that his lease will continue to be enforce with the new owners.

I would think that at the minimum he will have to renegotiate and sign a new lease.

So here is my question. Does the new owner have to honor the lease, sign a new lease or could they decide not to deal with my friend and make him move his business to another location?

Thank You in advance,

Tugs

the new owner has to honor the lease, or negotiate a settlement for your friend to move. (a buy out.)

 

[Tugs]

Thank you all very much for all of your advice. Hopefully everything works out for my friend.

Thanks Again,

Tugs