Legal Question in Real Estate Law in New York
Option to buy
I signed a lease agreement with my tenant with an option for him to buy the property(commercial). Under the terms of the lease the tenant pays a base rent plus additional rent every month. The lease states that the tenant would have to exercise his option to buy in writing and the closing should take place within 60 days after signing of the contract. The tenant has exercised that option about 2 months ago. Now my lender(previous owner)has filed a foreclosure action(which has no merit)against me and also named my tenant as defendant. I have 4 questions.
1. Since my tenant was named defendant in the summons(still conducts his business as usual) can his attorney withhold my base rent?
2. Does my tenant have a right not to pay his additional rent as per the lease,just because he exercised his option.
3. Do I have to have a deadline where I need to prepare the contract for my tenant(assuming I've resolved the foreclosure issue), because the lease does not state specifically a time frame for me to prepare the contract.
4. Do I have the right to deny my tenant his option to buy, since he was in default for not only paying the additional rent but also the base rent which his attorny holds in escrow. Thanks
2 Answers from Attorneys
Re: Option to buy
while your lease is still in effect and all sums should be paid it is not uncommon for a tenant to escrow the money pending resolution of the foreclosure. Also you could declare a default but you would be inviting extensive litigation that could tie up your property for a long time.
you can call me to discuss at 212 683 8677 or e mail me
Re: Option to buy
While generally during the term of a lease a tenant is required to submit monthly rent, when a foreclosure action arises, having the money held by an attorney's escrow account often is seen as an acceptable alternative until certain issues are resolved. An examination of your tenant's option clause would need to be made before a proper response as to his requirements upon exercising that option. You do have a few issues here to contend with and as such we would need some more information before making a complete and proper determination. You are welcome to contact us for a free consultation.
Law Offices of
STEVEN J. CZIK
The Soho Building
110 Greene Street, Suite 1102
New York, New York 10012
(212) 413-4462
The information provided by The Law Offices of Steven J. Czik (LOSJC) is for general educational purposes only. There is no attorney-client relationship established by this communication and no privilege attaches to such communication. LOSJC is not taking and will not take any action on your behalf and will not be considered your attorney until both you and LOSJC have signed a written retainer agreement. There are strict deadlines, called statutes of limitation, within which claims or lawsuits must be filed. Therefore, if you desire the services of an attorney and decide not to retain LOSJC on terms acceptable to LOSJC, you are advised to immediately seek the services of another attorney.
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.
