Legal Question in Landlord & Tenant Law in Missouri
In 2007, my son responded to an ad for a bar for sale. He met with the seller who listed equipment for sale, including hood and fire suppression system, built in coolers and other large kitchen and bar items. My son signed a lease with the landlord for the property on June 6, 2007, I sign as a guarantor on the lease. Additionally, my son purchased the equipment after he procured a bill of sale from the buyer, with the landlord signature, stating which items my son was purchasing from the previous owner. Included were the hood and fire suppression system, built in coolers and other large kitchen and bar items. The lease I signed as guarantor was from June 6, 2007 through March 31, 2010. In March 2010 the lease was renewed for March 2010 through March 2013, again I signed as guarantor. In December 2012, due to the economy, my son had become behind on the rent. The landlord approached my son and verbally agreed to a $8,000 payment to waive the $42,000 in back rent and $3000 for rent on a month to month lease basis. December 31, 2013, my son was forced to close his business due to financial & health issues. The landlord was informed the business closed but, like previous owner, we had left the assets including all equipment listed in the bill of sale, plus additional items he purchased, in the property in hopes of selling it to a new tenet. It was agreed that both my son and the landlord they would work together to find a new tenant for the property who would buy the equipment, just as my son had in 2007. This way it could be immediately reopened as a bar and grill, allowing the landlord to quickly receive revenue. The landlord agreed to this, including not charging additional rent on the property. Earlier this month my son was approached by a qualified buyer/tenet, who said he wanted to lease the space and buy the equipment. After signing a letter of intent w/ landlord the buyer decided he would offer my son 1/3 of the value for the equipment. My son countered w/price lower than value, buyer rejected it. The landlord is now telling my son that he has no legal right to certain items that were sold in the bill of sale, which the landlord signed, including hood system fire suppression and built in coolers. The landlord has indicated he will sue me, for back rent, as guarantor on the two previous leases if my son attempts to remove the equipment or does not sell it to the buyer at the undervalued (1/3) price.
Can landlord sue me for back rent when I have not signed as grantor since the expiration of the March 31, 2013 document? Does my son have any claim regarding the items listed in the bill of sale, the landlord signed, but now claims are fixtures/improvements?
2 Answers from Attorneys
As is the case in most of these situations, your Son's issue will be resolved by the fat z You've started your conclusions (landlord verbally agreed to,, ) As you can imagine, the landlord is not likely to have the same conclusions. So, the documents will probably decide the matter. If the lease calls for the tenant to remove all property at the end of the tenancy, then leaning that property you described, means he still occupies the space, and continued rent. That is where your possible liability comes in. If a lease is terminated by agreement, that often end a third party guaranty. But, not having read the lease or guaranty, I can't advise you that you're free of exposure.
It sounds like the value of the property and tent is more than a trivial amount. Your Son and you ahold consult directly with counsel that can examine the relevant documents. It might cost one or both of you a couple hundred dollars, but it could save yo thousands. If it turns out that your Son is still occupying the space, with his stuff, her may lose the right to retrieve the property. Therefore, I suggest you both meet with a civil practice attorney, in your area, very soon.
Good luck
In Missouri, a personal guaranty is narrowly construed and any ambiguity is resolved against the author. I will assume the landlord wrote the guaranty. Unless there is a document to the contrary, that guaranty terminates with the underlying contract. As to ownership of fixtures and improvements, those are two different types of property and I would need to see the sale document and read it in conjunction with the lease contract in order to give you a sound opinion as to that matter.
Sean Santoro
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
