Legal Question in Real Estate Law in Colorado
Breaking a lease
I need to know the consequences of breaking a three year lease. The lease has two years to go on it. I am closing my small business and moving to another state. The business itself has no inherent value without me to run it. My cars are all over ten years old and I own no real estate. I have no other assets except for a small retirement fund.
1 Answer from Attorneys
Risking a money judgment when there are no assets
Louise Aron
Attorney at Law
Lakewood Office:
1536 South Ingalls
Lakewood, Colorado 80232 USA
(303) 922 7687
fax (303) 922-1370
Cherry Creek Office:
300 South Jackson #100
Denver, Colorado 80209 USA
(303) 780-7339
Satellite offices:
Boulder - 4450 Arapahoe Avenue, #100
DTC - 4610 South Ulster, #150
A TOLL FREE NUMBER is available to clients outside the Denver metro area.
web site http://effectnet.com/la/
My email: [email protected]
LawGuru User
Dear LawGuru User:
Whether you have assets or not, it is unwise to break your lease without discussion or settlement with your landlord. Without a release from your landlord, you risk court action and a default or other judgment being taken against you.
Though judgments against you may be difficult to collect, breaking a lease can result in the landlord, or worse, its collection agency, annoying you and/or placing a bad mark in your credit report. Your credit report is vulnerable, even if your assets are not.
I recommend that you negotiate with your landlord. Try to obtain a substitute tenant (note that sublets often require landlord approval). Or offer your landlord a sum of money to release you from your obligation, but be sure to get any such release in writing.
I believe that it is unwise to walk away from an obligation such as a lease simply because a judgment against you may be uncollectable.
Please feel free to contact me if you need additional information.
Thank you for using LawGuru.
Sincerely,
Louise Aron