Legal Question in Real Estate Law in California

I sold my business (a bookstore) and the buyer default. he also did not pay his rent. the landlord took a judgement against him and locked up his place of business and give him 15 days to remove his stock. i sent to the landlord my information that i had first claim (before the 15days was up). the ucc and security agreement, which was filed with the state and county. the security agreement was writen by the property manager of the landlord. the landlord now wants to claim it as abandon and keep it all. what can i do and have they broke the law. there are also other vendors who has product in the store.


Asked on 9/06/09, 9:13 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Your security interest, as described on and perfected by a properly prepared and filed UCC-1, is superior to the landlord's claim (if indeed he has one at all) and may be enforced against the collateral and any proceeds from an unauthorized disposition of the collateral by the buyer or the landlord (or anyone else). However, the route to successful enforcement is likely to be bumpy, and I'd advise consulting with a local lawyer who has experience in secured transactions under the Uniform Commercial Code. I trust you complied with the bulk sales provisions of the UCC (sections 6101 et seq.) when you sold the business. Also, did you get a personal guarantee from the buyer?

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Answered on 9/06/09, 1:45 pm


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