Getting out of a commercial lease

[pumpknmom]

What is the name of your state (only U.S. law)? MA

I am a volunteer treasurer for a non-profit all-volunteer organization that is not doing well financially. We were forced to move this summer when our prior landlord didn't allow us to renew the lease, because they wanted to use the space for themselves. We found a new space to rent (at a cheaper rate), but the move affected our business very negatively. Our organization makes income by having members who pay membership dues. A large portion of our members left when we moved (much more than we expected) and we didn't get the new members to make up the difference. We have been burning through our savings to pay the rent, and I'm afraid that we will run out of money before the lease ends. We have over two years left on the lease.

I have raised the alarm several times with the other members of the Board, but the others tend to be optimistic and think things will get better. It seems that I'm the only one who is so worried about the situation.

We did have the lawyer remove the personal guarantee clause from the lease before we signed. I am not the person who signed the lease. Is there any way that I could be held personally liable if the organization can't pay the lease? I'm trying to gage whether or not I should think about resigning before this situation gets to that point. I don't mind helping and personally volunteering my time, but not if I'm going to get burned because of it.

Thanks in advance.

 

[LdiJ]

What is the name of your state (only U.S. law)? MA

I am a volunteer treasurer for a non-profit all-volunteer organization that is not doing well financially. We were forced to move this summer when our prior landlord didn't allow us to renew the lease, because they wanted to use the space for themselves. We found a new space to rent (at a cheaper rate), but the move affected our business very negatively. Our organization makes income by having members who pay membership dues. A large portion of our members left when we moved (much more than we expected) and we didn't get the new members to make up the difference. We have been burning through our savings to pay the rent, and I'm afraid that we will run out of money before the lease ends. We have over two years left on the lease.

I have raised the alarm several times with the other members of the Board, but the others tend to be optimistic and think things will get better. It seems that I'm the only one who is so worried about the situation.

We did have the lawyer remove the personal guarantee clause from the lease before we signed. I am not the person who signed the lease. Is there any way that I could be held personally liable if the organization can't pay the lease? I'm trying to gage whether or not I should think about resigning before this situation gets to that point. I don't mind helping and personally volunteering my time, but not if I'm going to get burned because of it.

Thanks in advance.

No, you would not be held liable. You neither signed the lease nor gave a personal guarantee.

 

[pumpknmom]

No, you would not be held liable. You neither signed the lease nor gave a personal guarantee.

Thank you. Do you know if the person who signed could be held personally liable though?

 

[LdiJ]

Thank you. Do you know if the person who signed could be held personally liable though?

No, they would not be held liable either because they did not give a personal guarantee. Also, I think that you might be over worrying the issue. The organization only moved a few months ago. Things might very well get better.