Legal Question in Real Estate Law in California
Commercial Lease Agreement
I recently signed a lease with a Property Management firm to rent space on a month to month temporary basis. I have the signed lease in my hands, and they have a full deposit and one month's advance rent. My space is too me located next door to a well known store name. This store's corporate office has now sent a letter to the Property Management firm stating that my lease may be in violation of their lease which states non-competitors in the same shopping center. My store is not a competitor to theirs on the whole but in one possible area of merchandise they carry. In addition there used to be a store in the complex that is very close to the same business as mine. My question is ... shouldn't the Property Management company and the leasing company who facilitated my lease have already been aware of this existing tenants lease clauses, and thought this through before accepting my proposal and signing a lease agreement with me? Can they consider my lease null and void? What rights do I have as a temporary lease holder regarding this predicament? Can I hold the leasing agent and/or Property management responsible for locating me a new location for same cost/space should they cancel my lease?
3 Answers from Attorneys
Re: Commercial Lease Agreement
You may not be in violation of the conditions of the lease, or you may have a case against the property management company. One comprehensive solution to the problem if you want to remain in the center is to file a Declaratory Relief action against the center and an action for negligence against the property management company. If the property management company approved your lease that may bind the owner. I would be happy to provide you with free consultation if you call me at 714 363 0220 to explain your options.
Re: Commercial Lease Agreement
RESPONSE IN ALL CAPS: My question is ... shouldn't the Property Management company and the leasing company who facilitated my lease have already been aware of this existing tenants lease clauses, and thought this through before accepting my proposal and signing a lease agreement with me? ABSOLUTLEY, FACTUALLY AND LEGALLY THEY KNEW AND ARE HELD TO KNOW THE TERMS AND REQUIREMENTS. Can they consider my lease null and void? NO. What rights do I have as a temporary lease holder regarding this predicament? IF THEY HAVE YOU ON A MONTH TO MONTH LEASE THEY CAN STILL GIVE YOU A THIRTY DAY NOTICE. Can I hold the leasing agent and/or Property management responsible for locating me a new location for same cost/space should they cancel my lease? IF THEY GIVE YOU NOTICE/EVICT, YOU MAY BE ENTITLED TO DAMAGES.
Joel Selik
800-894-2889
Attorney at Law/Licensed Real Estate Broker
www.4thelaw.com
Re: Commercial Lease Agreement
You seem to be blameless in the matter and you should be entitled to all the rights given you by your lease.
The problem is, your rights are terminable on 30 days' notice, and if the center management doesn't want to upset the long-term tenant, they can, and very well may, just boot you out at their earliest opportunity.
I suggest you try negotiating with all the parties to see if you can convince the others that your business is not a competitive threat.
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