Legal Question in Real Estate Law in New York
Landlord default on bank loan/tenants notified/
The mall we rent our business from has defaulted on their bank loan--foreclosure is emminent--what do we do if the mall is sold by the bank--do we lose our business and the income that pays for the loan on it? Are we also the losers?
The summons filed by the bank against mall owners on December 20, 2002. Mall tenants notified by summons March 7, 2003.
What is our recourse on the mall owners for our loss?
1 Answer from Attorneys
Re: Landlord default on bank loan/tenants notified/
You ask a complicated question that would require significant investigation, including but not limited to a review of your lease, the lawsuit that was filed and a discussion w/various persons. For example, it is also not clear from your question whether the mall owner will seek bankruptcy protection.
That said, it is common for a new owner to take subject to the rights of lessees (at least until the expiration of the lease term). But, as noted, especially in a commercial context, the lease and other documents govern.
-- Kenneth J. Ashman; www.AshmanLawOffices.com
This communication is for general informational purposes only and is not intended to create an attorney-client relationship, which, under the policies of Ashman Law Offices, LLC, can only be created by execution of a formal retention agreement.
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.
