Legal Question in Real Estate Law in California

Tenants (we) Lease with Landlord

The Lease Contract of the office/warehouse we have been using for 2 years (and all of the rent has been paid by us) is singed by another company, which is under processing of bankcrupcy. The Lease will be expired by May 31, 2002 and there's a 2-months security deposit. Our question is: can we ask the Landlord to use security deposit to pay the last 2-month rent? Will the Landlord ask us to move out right away without refunding us the security deposit? Or the Landlord will refund to the company which singed the Lease Contract and that company is filing bankcrupcy with no more bank account? Thanks


Asked on 3/12/02, 5:21 pm

1 Answer from Attorneys
Lyle Johnson Bedi and Johnson Attorneys at Law

Re: Tenants (we) Lease with Landlord

You need to retain counsel immediately regarding the security deposit. The terms of the sublease would determine who is responsible for refunding the refund. If the security deposit was held by the company that is bankrupt, then it is probably lost as the owner would not be responsible.

Contact the landlord immediately and commence negotiations for renewal of the lease. Since you have a good record as a tenant you have an excellent chance of renewing the lease.

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Answered on 3/13/02, 1:15 am


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