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Sale of Corporation

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bjack49

Guest
I'm selling my corporation. The corporation has no assets other than the lease on the property that we rent and a garage that we built and paid for. My question is, when I sell the corp, is the landlord required to honor the lease, that is still in effect with my corp now, to the new owner's? The lease is in the corporate name not my name. Also, am I required the notify the landlord that I'm selling the corporation? The relationship with the landlord over the past six months has been bad. He has not lived up to his word and we don't want to have any contact with him if possible. Thanks for any legal comments on this problem.

Beep in Baltimore, Maryland

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HomeGuru

Senior Member
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by bjack49:
I'm selling my corporation. The corporation has no assets other than the lease on the property that we rent and a garage that we built and paid for. My question is, when I sell the corp, is the landlord required to honor the lease, that is still in effect with my corp now, to the new owner's? The lease is in the corporate name not my name. Also, am I required the notify the landlord that I'm selling the corporation? The relationship with the landlord over the past six months has been bad. He has not lived up to his word and we don't want to have any contact with him if possible. Thanks for any legal comments on this problem.

Beep in Baltimore, Maryland

<HR></BLOCKQUOTE>

The lease possibly remains intact because the tenant corporation would still be the same. Check to see if the lease has a condition that the lease is cancelled if there is any change in corporate
ownership. You are obligated to tell the new owner of your landlord problems and also obligated to notify your landlord of the change in ownership. Many commercial leases are personally guaranteed so double check on this as well. The lease may specify that you must obtain consent and approval from the landlord prior to any change in ownership.
 

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