What is the name of your state (only U.S. law)? California
I rented out a property for a small business by signing a 5 year contract with them (with personal liability). The contract stated that contingency will automatically be removed 120 days after signing the contract. On the 120th day, the business requested a contingency extension claiming it needed more time to finish performing due diligence, but I refused.
On the 135th day, a business representative stopped by my place giving me the property keys and saying the business is terminating the lease. I was surprised and threatened to sue them. Here is some additional information about the case:
Good points that I can use in court against them:
the binding contract both parties signed
I started mitigating my losses as soon as the business gave me back the property keys: I've put the property for rent but I'm afraid it's going to take some time to rent it out
Bad points that might be used against me:
while performing their due diligence, they discovered a problem with the property's building that was falsely advertised by me (disclaimer: the advertisement was done to the best of my knowledge) To try and fix it, they applied for a permit but the city didn't allow the changes which means the property can't be used to conduct their business
I didn't pay the real estate agent commission after the agreed on contingency-removal date. I admit it's a mistake but I needed the money when I knew the business might default on their lease
My Question
Should I consider suing them or suing is not worth the effort? What do landlords with similar issues usually do in my case?
Thank you!
I rented out a property for a small business by signing a 5 year contract with them (with personal liability). The contract stated that contingency will automatically be removed 120 days after signing the contract. On the 120th day, the business requested a contingency extension claiming it needed more time to finish performing due diligence, but I refused.
On the 135th day, a business representative stopped by my place giving me the property keys and saying the business is terminating the lease. I was surprised and threatened to sue them. Here is some additional information about the case:
Good points that I can use in court against them:
the binding contract both parties signed
I started mitigating my losses as soon as the business gave me back the property keys: I've put the property for rent but I'm afraid it's going to take some time to rent it out
Bad points that might be used against me:
while performing their due diligence, they discovered a problem with the property's building that was falsely advertised by me (disclaimer: the advertisement was done to the best of my knowledge) To try and fix it, they applied for a permit but the city didn't allow the changes which means the property can't be used to conduct their business
I didn't pay the real estate agent commission after the agreed on contingency-removal date. I admit it's a mistake but I needed the money when I knew the business might default on their lease
My Question
Should I consider suing them or suing is not worth the effort? What do landlords with similar issues usually do in my case?
Thank you!