Legal Question in Real Estate Law in California

Re: Restaurant Equipment Left Behind

OK, you want to have an attorney handle this for you. Let me know if interested.

Best,

Daniel

Best,

Daniel Bakondi, Esq.

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Re: Restaurant Equipment Left Behind

The basic law is that a tenant's improvements to real property inure to the property owner at the termination of the lease. A major exception is so-called "trade fixtures" such as business equipment necessarily installed in order to allow the tenant to conduct its business, trade or occupation, such as display cases, beauty-parlor stands, dentist chairs, stoves, and so on. These may be removed by the tenant, but it is usually held that they must be removed by the end of the lease. If the tenant is still removing its fixtures say, two weeks, after the lease ended, this may result in an extension of the lease and an obligation to pay rent as a holdover tenant; or, it may cause loss of the tenent's right to remove the trade fixtures, depending upon the lease terms re holdover tenancies.

At this point, I should add that all of the rules regarding trade fixtures can be modified by an express agreement between the landlord and the tenant. Further, most commercial leases contain such provisions, and you need to review your lease to see what it says about trade fixtures and/or tenant improvements. It's hard to imagine that a fast-foor franchisor (for example) would allow its equipment to be installed in a building without knowing that its interests were protected by a provision extending the time for removal of the equipment beyond the lease expiration date.

I think you are doing the right thing to notify the tenant and the third party. I would take no action until they respond, then act reasonably in light of the resposne and the terms of the lease.

Have a lawyer review the lease and the responses if there is any uncertainty.