Legal Question in Real Estate Law in Georgia

Lease assignment - Landlord Issues

I purchased a business in which the sales agreement stated I would agree to an assignment of the current lease until such time I can re-negotiate the lease with the landlord. After the sale of the business, the landlord says he does not agree to the lease assignment without a personal guarantor. I've made it clear i am not signing a personal guarantee. He also will not negotiate regarding desired repairs. Other than the sales agreement between the seller and I, no other contracts exist. I want to move the business but the lease has 3 more years. Will I be held liable for the lease if I leave due to the ''agrees to an assignment clause'' even if the landlord doesn't agree to the terms of an assignment?


Asked on 9/06/06, 11:07 am

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Lease assignment - Landlord Issues

There is no way to respond without reviewing the documents, but the primary point is that the landlord generally does not have to agree to the assignment and he is free to insist on a personal guarantee (or any other terms) for a new lease with you. Apparently yout seller has also asked about this earlier today. As for whether that means ou have any legal obligations to the lanlord, maybe, maybe not. It also may or may not affect the sale and purchase of the business, or whether you or the seller have claims against each other if it turns out you can't lease the property or the seller is stuck with a lease. This is but one of many problems in buying or selling a business without having the deal reviewed in advance.

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Answered on 9/06/06, 11:21 am


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