Legal Question in Real Estate Law in California

Commercial landlord dispute

I have been a tenant here in an office space for over 4 years. Recently, I took over an additional 2,500 square feet. I am a mtg. Broker. Business is way off. I asked for and received a verbal, and written offfer to reduce my monthly rent. Landlord also offered to allow me to sublet my space subject to approval. I have been working hard since to find suitable renters with limited success. I submitted a final request today to reduce rent sligthly further...very slight. I was presented a letter today ''rescinding landlord's offer to rescind'' it was handed to me by his rep. who said I made him irritable'' It occurs to me this very wealthy individual has acted in bad faith?


Asked on 8/28/07, 7:29 pm

4 Answers from Attorneys

Benjamin Berger Berger-Harrison, A Professional Corporation

Re: Commercial landlord dispute

The letter you were handed admits that the landlord DID offer to make a concession. If you accepted that offer before he rescinded (revoked) it, he may be bound by it.

In any event, the facts you've relayed don't seem to constitute bad faith.

You should consult with an attorney regarding your options to reduce your liability under that lease. Feel free to call to discuss.

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Answered on 8/28/07, 7:35 pm
Robert L. Bennett Law offices of Robert L. Bennett

Re: Commercial landlord dispute

Not necessarily. I agree that things are very difficult in your business now, but that is not the landlord's problem.

Was the written offer signed by both sides? If so, it might prevail, under the law of contracts.

You may have some defenses here, but I don't think bad faith is one. You probably need to be represented by an attorney, if for no other reason than to demand reasonable terms from the written offer.

Please feel free to e-mail, or call, my office if you need more.

Good luck!

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Answered on 8/28/07, 8:03 pm
Judith Deming Deming & Associates

Re: Commercial landlord dispute

Are you for real? Bad faith? The landlord has no obligation to reduce your rent simply because your business is "way off." When business was "good" did you offer to increase your rent? A lease or rental agreement is a contract and the landlord has very right to enforce its terms. What does the fact that the individual is "wealthy" have to do with it? I would react the same as your landlord and I am not wealthy. Your ingratitude is hard to support.

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Answered on 8/29/07, 10:56 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Commercial landlord dispute

Doesn't sound as though you timely accepted the offer to rescind, and the bad faith argument might express your feelings but it is not legally what is meant by bad faith, and I think your legal position is very weak. I'd suggest further negotiations.

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Answered on 8/29/07, 10:59 am


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