Legal Question in Real Estate Law in California
previous owner did not renw lease
We bought someones business who said he was renewing the lease for another five years. He started escrow later than than the signed agreement. the last day to renew lease was past the date escrow was started. We did not find out until we finally received a copy of the lease from the property owner after buying the business. Landlord is raising rent 34% and we cannot keep the business open. We contacted previous owner and all he said is oops, he forgot to renew the license. What can we do. We will lose our house.
2 Answers from Attorneys
Re: previous owner did not renw lease
You will probably need to sue the seller of the business for breach of contract and negligence.
Re: previous owner did not renw lease
Certainly breach of contract and negligence, but perhaps also fraud; the seller may have known of the impending rent increase and it may have been unavoidable or partly unavoidable even through exercise of the renewal option.
Did you withhold any part of the purchase price?
That is often done, and gives the business buyer some leverage over the seller.
If you didn't use a lawyer, you need to get one. If you did, you may need a new one; if he/she overlooked the lease renewal problem before close of escrow, this could be malpractice.
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