Legal Question in Real Estate Law in California

I own a business and rent the downstairs portion of the property from the co-owner of the other business. The co-owner just parted ways and left the company. Do i still pay him this last months rent due to the contract or do I pay the other partner who would now be the sole owner of the company? I am confused and dont want to pay the money then get kicked out by other owner.


Asked on 10/07/11, 4:11 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

You should not be forced to make guesses about changes in the right to receive rent when it appears there may have been some ownership change at the landlord business. Payment should be made as designated in your lease, or if there is no designation, to the person or at the place where you've customarily paid rent, until you get a written notification to do differently. Be sure to pay by check and make a clear notation on the check as to what it's for. This seems to be the course of action least likely to get you involved in a dispute, either over whom is to receive the rent or because the rent wasn't paid on time. There is technically the alternative of depositing the rent money in court and filing a lawsuit for interpleader, requiring the two claimants to litigate their entitlement to the deposited funds, but this would be premature, cumbersome and expensive.

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Answered on 10/07/11, 4:53 pm
George Shers Law Offices of Georges H. Shers

Mr. Whipple is correct, but why not first go to all the owners and tell them you want to pay the rent and are aware that the rental agreement continues even if one co-owner leaves the business, but you do not want to be caught in the middle so they need to decide how the payment should be handled and if they can not whether you keep the money until they do decide or deposit with some neutral third party or joint account with them that requires everyone to sign for any money to be withdrawn, etc. Be sure everything is in writing, including all of their responses; if they do not put it in some type of written form, immediately e-mail that person stating that you are repeating exactly what he said that is relevant and she/he should immediately correct you if you are wrong or inaccurate or misleading.

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Answered on 10/07/11, 5:03 pm


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