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Simple New York Commercial Lease Question

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cbsproperties

Junior Member
I have a simple question:

I purchased a commercial property in 2013. The tenant is a coffee shop business, and I agreed to honor the existing lease (which heavily favors the tenant) both because I was advised that the law required it and because I thought it the right thing to do. I intend to continue in this fashion.

My question is: do I have ANY obligation to honor the exiting lease if the coffee shop business is sold? The owner of the coffee shop business is talking about selling, and she seems to think that her sweetheart lease would apply to a new owner were she to sell. I say if she sells all bets are off. I'm afraid she might tell potential buyers that her lease is transferable.

The property is located in New York State.

Many thanks for your help.
 


Zigner

Senior Member, Non-Attorney
It depends on how the lease is written. Is the lease written in the name of the business? If so, then if the business remains, the lease would likely remain in effect. You would be wise to have your matter reviewed by a local attorney who can review all of the details.
 

cbsproperties

Junior Member
Sorry if this is confusing, but I'd like to protect identities:

The lease is written between "PERSON A" (The previous building owner) and "XXXXX, Inc." The President of "XXXXX, Inc." is the person who owns/operates the coffee shop. The coffee shop itself is called "Bob's Coffee Shack."

Yes, of course I will be speaking to a local attorney, but I'm in the preliminary stages and I'm just trying to do some leg work. I may very well buy the business from her, but I will have far more leverage if I retain the right to alter the lease if it's sold to somebody else.
 

FarmerJ

Senior Member
Your copy of the lease should have some more answers like it should already say that you have the right to transfer or assign the lease ( as in selling the building again ) but what counts more is what the lease says about the tenant being able to transfer the lease or not , if that lease does not give a tenant the right to assign/ transfer the lease to another person then the lease cannot be transferred by one tenant to another tenant with out your consent.
 

cbsproperties

Junior Member
From the lease:


"ASSIGNMENT

12) Tenant may not assign this lease or sublet the premises or any part thereof for any legitimate use, without the consent of Landlords. If any assignment or sublease is made by Tenant without Landlords' consent, Tenant shall remain liable as surety under the terms hereof notwithstanding such assignment or sublease."

This sounds like good news, but I don't know how many ways it could be interpreted legally.
 

LdiJ

Senior Member
From the lease:


"ASSIGNMENT

12) Tenant may not assign this lease or sublet the premises or any part thereof for any legitimate use, without the consent of Landlords. If any assignment or sublease is made by Tenant without Landlords' consent, Tenant shall remain liable as surety under the terms hereof notwithstanding such assignment or sublease."

This sounds like good news, but I don't know how many ways it could be interpreted legally.
That is only good, once again, if the tenant doesn't sell the entire corporation. If the entire corporation is sold, there is no change in tenant.

On top of that, if the tenant continues to pay the lease in full, without interruption, and without interruption to the current business located there, you would still have a problem.

I think that you should also be careful not to assume that you could somehow make more money from the premises if the current tenant were gone.
 
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