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My buyer defaulted a Commercial Lease which I signed guarantor

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langtusj

Member
What is the name of your state? San Jose, CA.

Hi,

I'm in desperate searching for possible solution. I sold a small business early last year and had to sign a guarantor agreement for 2 years (Otherwise, the landlord would not approve of my reassigning the lease). Now, my buyer was in default since last Sep 2004 by declaring bankrupcy (filed as corporation). I got a letter from the property management asking financially responsible (the current due balance is 13K already). Until they are able to locate a new tenant, that amount will keep build up. I have tried to work with the landlord to buy an easy out by just paying a certain amount but they won't accept. What are my options now?

1) The term of the lease was 3 years, plus 5 years optional. I had sent an email to express my wish to exercise my rights for the 5 years when the first 3 years expired, but I did not get any confirmation from the landlord at all. Approx about a year of my 5 years option, I sold the store. Can I base on not receiving confirmation from the landlord to not being obligated to the 5 years?

2) If I don't have money to pay them, will the landlord go after my home? This is what I am most afraid of.


Please let me know if anyone of you has run into this problem before and how you deal with it. I am ready to pay money just to get a peaceful mind. Thanks.


Regards,




Thanks.
 



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