Legal Question in Real Estate Law in New York

Re: I, owner, am signing a store lease

Your potential tenant is only looking out for himself. As a landlord (a) You should have the individual personally guarantee payment of the rent and any additional rents for protection if the corporation folds ups, (b) You should have an attorney add a clause in your lease that you as Landlord must approve the sale of the majority shares of the business so that you are protected, (c) In the event the business is sold and an Assignment of Lease is required, your attorney will charge you to review the Assignment. You should have the tenant pay that cost.

Call should you have further questions.

The above statement is a comment to a legal question. No attorney-client relationship has been created. This is not legal advice and should not be relied upon until an attorney-client relationship is created.

Re: I, owner, am signing a store lease

These are issues that you need to address. If the tenant signs only as a corporation and you leave it at that, then the individual has no liability and you can look only to the corporation. There is a logical interplay between a corporate lease, security deposits, and limited personal guarantees. That is part of what a real estate lawyer does for his or her clients. You probably have a no assignments/no subletting clause, but unless you add provisions dealing with a transfer of ownership of the corporation, you are open to th practical equivalent of a sublease.

This post is not legal advice and does not create an attorney-client relationship. It is a comment on the legal question posed by the poster and should not be relied upon unless and until an attorney-client relationship is entered into. Doing so would require signing an engagement letter and depositing a retainer to secure payment of legal fees.

Re: I, owner, am signing a store lease

Why not add a personal guaranty so if the corp. has issues, he is still on the hook.

You as landlord can limit or prevent the assignment of the lease if you wish,

Write with any further questions.

Good Luck

RRG

Re: I, owner, am signing a store lease

a. yes

b. yes

c. yes