Legal Question in Business Law in Massachusetts

commercial contract law

I signed my commercial lease that my landlord drafted. It was forwarded to the landlord for signature (at his request)with first and security deposits. He hasn't signed the lease for 9 months (he keeps promising that he will but ''forgets'') but he cashed deposits and all subsiquent rent checks.

He now wants to sell the property that I am leasing. He wants to sell it with no lease for an easier sale. He is stating that I have no lease as he did not sign it.

The Uniform Residential Landlord Tenant Act states that if either party signs a lease and the other party, after receiving the lease, pays or collects the rent, the other party shall be bound to the lease.

Is there a commercial application for the same situation? I would like to forward something to him that reflects that so that I can make him realize that he is in the wrong and perhaps avoid court.

Thank you very much for any assistance you can give me in this matter. I have over $175,000 invested in the business located in the leased property with a 15 year lease. To loose this would be critical!

Scott


Asked on 10/23/04, 1:13 am

2 Answers from Attorneys
Barry Levine Law Office of Barry R. Levine

Re: commercial contract law

Scott . . . you have a problem. You may be able to posture about a "constructive lease" and/or "lease by estoppel," but in my opinion, the landlord would ultimately prevail. Commercial situations are far-removed from residential ones. Sophisticated business people do not allow a situation such as yours to fester for 9 months regardless of what the landlord has been telling you. On the other hand, what portion of the building does your occupancy represent? If you moved out (after all, having no lease cuts both ways, you could be considered a tenant-at-will), what would the consequence be to the landlord? How sellable would the property be if your space was vacant? You need to develop a good strategy for addressing an unusual situation. I would be pleased to discuss this situation with you and assist in developing that strategy. Barry

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Answered on 10/25/04, 3:19 pm
Len Foy NH Residential Title & Escrow

Re: commercial contract law

Hi Scott -

It's such an interesting question, I think that you've played your cards well except that when your landlord was previously collecting rents, but hadn't yet signed the lease, you should've taken some action (rent withholding, for example) to bring him around. It's obvious that he had a motive in not signing the lease.

My advice to you: retain an attorney to represent you against the landlord and also the would-be purchaser of the building. Your legal position: that you and your landlord are the parties to a CONSTRUCTIVE LEASE, one which the Court will likely enforce against your landlord.

Your position may not be as bad as it appears - but hiring a good lawyer to represent you will make all the difference.

My name is Len Foy, I'm a real estate attorney practicing in Massachusetts & New Hampshire. If you'd like more information you can call our office at (603) 434-3437.

Oh yeah - GO RED SOX!

Regards & Good Luck -

Len Foy, Esq.

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Answered on 10/23/04, 3:17 pm


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