What is the name of your state (only U.S. law)? New York
(Please let me know if I should move this question to Business)
Our LLC had a 10-year commercial (retail) lease that we decided to vacate after 2 years. The personal guarantee was already over, the LLC will be dissolved shortly, and we gave a 6-month "good guy" notice in writing regarding our intention to vacate. After we vacated, we had a walkthrough with the landlord (no issues found) and surrendered the keys. Now the landlord sent us a "moveout certification" document to sign that includes the following:
"Tenant has vacated the Premises in violation of the Lease.
1) Tenant is current with its Rent obligations, and, as of the date hereof, neither Landlord (to the best of its knowledge) nor Tenant is owed any sums by the other party due under the Lease.
2) Notwithstanding Paragraph 1 above, the Lease and all its terms and conditions, including without limitation, the Security Deposit, remain unchanged and in full force and effect and nothing contained in said Paragraphs shall be deemed a waiver of any terms, conditions rights or remedies available at law, equity or under the Lease."
They also informed us that they would not be returning the security deposit. It is a very substantial amount to us, 3 months of rent.
My question: is this "moveout certification" typical for an early termination situation? Paragraph 2 sounds to me like a statement that the landlord is not terminating the lease from his end, so what would be the benefit, if any, for us to sign this document?
(Please let me know if I should move this question to Business)
Our LLC had a 10-year commercial (retail) lease that we decided to vacate after 2 years. The personal guarantee was already over, the LLC will be dissolved shortly, and we gave a 6-month "good guy" notice in writing regarding our intention to vacate. After we vacated, we had a walkthrough with the landlord (no issues found) and surrendered the keys. Now the landlord sent us a "moveout certification" document to sign that includes the following:
"Tenant has vacated the Premises in violation of the Lease.
1) Tenant is current with its Rent obligations, and, as of the date hereof, neither Landlord (to the best of its knowledge) nor Tenant is owed any sums by the other party due under the Lease.
2) Notwithstanding Paragraph 1 above, the Lease and all its terms and conditions, including without limitation, the Security Deposit, remain unchanged and in full force and effect and nothing contained in said Paragraphs shall be deemed a waiver of any terms, conditions rights or remedies available at law, equity or under the Lease."
They also informed us that they would not be returning the security deposit. It is a very substantial amount to us, 3 months of rent.
My question: is this "moveout certification" typical for an early termination situation? Paragraph 2 sounds to me like a statement that the landlord is not terminating the lease from his end, so what would be the benefit, if any, for us to sign this document?