Legal Question in Business Law in California

I owned a small business (Massage store), and I am trying to sell my business. I found a buyer but the landlord said after the current contract (2 years left) he will not extend it. This scared off my buyer. Is this legal? Actually in the summer (this June), I was trying to sell and he said he wanted to have 10% of the sale price money so I did not sell. This time is emergency I have to sell. What should I do?


Asked on 12/18/15, 2:51 pm

1 Answer from Attorneys

William Christian Rodi Pollock

Your landlord is not required to extend the lease if there is no option available under the lease terms. You can sell the business if a buyer is able to negotiate a deal with the landlord, or is willing to move it somewhere else. You should read the lease carefully. It likely says you are not able to transfer the lease without the landlords consent. This is presumably why he was demanding 10% to provide his consent before.

Unfortunately these are issues you should have consulted with counsel about before you started the business. I'm not sure what to advise you about the "emergency" If this means you are losing money and can not continue the business, you may simply have to close up and liquidate. This factual position would place you in a position where you certainly do not want to extend the lease with the landlord to make it more salable.

Obviously all these generalizations are just that. Without more specific information, it is not practical to provide you more detailed or reliable information.

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Answered on 12/18/15, 3:32 pm


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