Am I bound to a lease agreement if it was signed with the prior owner and not the current owner?

Question

Two months ago we signed an 18 month lease agreement with our landlord for our business. Prior to signing the lease we were in negotiation and the landlord expressed that he was thinking of selling the building, at that time I told him that I would not sign a lease with someone that I did not know, he did not want to tell me who was interested. Approximately one month later he then said that he was not going to sell he was going to add on and that the bank required a lease with all of his tennants. So we signed an 18 month lease, about 1-2 weeks later he sold the building. Is the lease that we signed with the former owner transferable to the new one, or since I expressed that I did not want to sign with someone that I did not know is the lease void? There has been nothing in writing besides the old owner giving me a recipie card with the new owners address. The lease that we did sign has noting in it about being transferable. Any help is greatly appreciated

The lease that we signed in Feb, was the only thing in writing, what I mean by nothing in writing, is that the change to the new owner, we were only given a recipie card with the new address, not even the guys name just mail the check by the 5th or 6th to this address. Then I had this gentelmen stop in late at night and say I am the new landlord I will be here on the first to get the check. I am left saying who is this, should I have something in writing that says this is the new landlord. Or go by what the previous owner said to do, so that is what I did, when this guy stopped in on the first I said I mailed it, shouldn't there be something that says this is the new guy, preferably a new lease, because he is very rude? When he stopped in that day he blurted out, where is the rent, right in front of my customers. Buy the way we are in South Dakota if that helps.

Answer 1

Leases are assigned with the sale of a property.

FYI, commercial leases are very much part of a lenders decision in making a loan for a commercial property because if the borrower defaults, the lease assignments give the lender the right to the rents.

"The lease that we did sign has noting in it about being transferable." That would only be applicable if YOU wanted to transfer YOUR lease or sublease to another business or person.

"There has been nothing in writing" Perhaps you won't mind explaining just what form that lease was in. Symbolic carvings on a cave wall? Smoke symbols in the sky?

A Lessor (the owner or holder of a lease) needs neither the consent of nor the approval of a Lessee (the tenant) to assign a lease. That means they don't need your consent or approval to do what they want with it. Your feelings are not their concern. They don't have to tell you that they are selling, nor to whom. Your lease terms and conditions remain the same. The only thing that changes is who you make the check out to.

Answer 2

Check your lease carefully. If the lease makes any reference to the landlord's "heirs, successors and/or assigns" then the lease may be transferred by the landlord to a new owner and you are still bound by its terms.

However if getting out of this lease is important enough to you that you are willing to spend a lot of money, then you may have a case. You would have to file a lawsuit which would probably take at least a few years to resolve. Speak to an attorney who specializes in commercial real estate and litigation. There was a case in NJ several years ago where an insurance agent took a job with an agency, relying on the fact that he would be working under a specific broker. Then the broker sold the agency shortly afterwards. The agent filed a lawsuit to get out of the employment contract and he won because the broker had lied to him about his plans for selling the agency.

Answer 3

If I was you, I would look at the language in your lease or talk to an attorney; however, in most states when a leased property is conveyed to a new owner they are usually the one who have the right to terminate an existing lease - however, the leasee; which is you - must be given notice. Since the new owner has taken title, subject to the rights of the tenants, the sale clause enable the new landlord to claim possession and negotiate new leases under his or her own terms and conditions. For further assistance - check your States Landlord Tenant Code.

Answer 4

Residential leases go with the property and the transfer of ownership does not impact the lease. For a commercial property consult a commercial real estate agent. My guess is that the price paid for the parcel included you as a tenant, that verifiable monthly rent. That is why your previous landlord basically lied to your face but it still won't impact the original terms of the lease.

Answer 5

As the tenant, you're bound to the lease agreement unless it includes a clause that specifically lets you out of the lease if the landlord sells the building. Conversely, the new owner of the building is bound to the lease; he/she can't throw you out as long as you perform your obligations on the lease.

Answer 6

I would think that if the lease didn't say anything about being transferable you might be off the hook, but then depending on where you live, it might be covered by state law. I would advise you talk to a lawyer before you sign or pay anything more. It sounds to me like your former landlord knows something that you don't and he is trying, if not all ready succeeded, in pulling a fast one on you. Good luck.

Answer 7

whilst does your hire expire? 3 years is long for a residential condo hire. in the journey that your hire is up this 3 hundred and sixty 5 days then it sort of feels to me the owner won't renew ti and additionally you will might desire to moe besides. If the hire expired final 3 hundred and sixty 5 days nad switched over to a month to month hire, then you definately could circulate whilst suited be conscious is given to you. before you think of approximately suing all and sundry you are able to desire to have suffered economic damages. So, for approximately 3 years you had a place to stay. this means you like this place adequate to honor the hire and in keeping with hazard you like it extra suitable than that. in case you may circulate then it is going to fee your cash to go. yet whilst your hire has expired or is approximately too, then you definately might have had to go besides and incur the moving expenses. i'm hoping your protection deposit continues to be in tact. you ought to sue for that when you progression. yet you may get your deposit back with out having to sue. so some distance i do no longer see you having a case except you have suffered damages. The hire expiration date is the huge factor that determines that.

Answer 8

No, and you had a verbal agreement with the other owner. So if you have any problems you can always take the new landlord to court.