Legal Question in Real Estate Law in California

Lease

I own a small shop that has a long lease term with the current landlord. Last year, the landlord decided to sell the shopping center. An agent representing a big home building company came to talk with us with the landlord's consent. I knew the building company wants to buy the land to develop single houses. The building company has to buy our lease term. With the consent of the landlord, the agent and I entered an option agreement. Basically they will have the option to buy our lease within 365 days and provides 2 months notice time. The lease will be transfer to them at the end of the 2 months. This month, the building company excised the option. However, when I noticed the landlord, he strongly against the closing. He said he would hold us responsible for it. I know that the building company also has an option agreement with the landlord to buy the land, but somehow the option was extend to next year. The landlord wants the building company to buy the land before buying the lease. But, now, the building company has excised the option, which means I have to carry out my agreement. The building company says I need to close by the end of 2 months. The landlord says I shouldn't. What should I do? Who is right?


Asked on 10/14/99, 12:49 am

2 Answers from Attorneys
Joshua Genser Joshua G. Genser, Attorney at Law

Re: Lease

You really don't provide enough information for us to

give you much of a definitive answer. Does your lease have

in it a prohibition on assignment, or does your

landlord have the right under that lease to reject

an assignment? Did you get the landlord's permission

to the option in writing? Does the builder

who has an option to buy your lease intend to pay your

rent for the remaining term of the lease?

You really should take all of your paperwork to an attorney

and let him or her read it all and give you a

considered opinion upon which you can rely. If you're

in Northern California, you can call my office at

510-237-6916.

Read more
Answered on 10/14/99, 4:32 pm
Ken Koury Kenneth P. Koury, Esq.

Re: Lease

Joshua is right, more information is needed. If you are in Southern Calif I would be happy to help you.

Read more
Answered on 10/15/99, 1:31 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in California