Legal Question in Real Estate Law in Texas

Coin Laundry Lease Agreement

We own a motel since Sept 94 and leased out a room for a coin laundry room for 5 years which expired in 99.

The lease automatically renewed for another 10 years if I did not notify the company (which i completely forgot about) so now it expires in 2009.

The original co sold the business to another firm in 2000.

I would like to purchase my own machines but Co says i must pay $17K + cost of machines!!

The contract also states in handwriting ''Should lessor desire to purchase the equipment form lessee during the term of this lease, lessee hereby agrees to negotiate a fair price for such purchase'' $17K + equipment sure doesnt sound fair to me.

What can i do?


Asked on 9/24/02, 11:39 am

1 Answer from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Coin Laundry Lease Agreement

These machine leases are always overbearing. A fair value would be what they are worth I would think. I think you have to continue what you are doing, trying to negotiate a settlement. Look carefully at the lease to determnine that the lessor is in compliance with all of the terms of the lease. If there is a default you may be able to terminate the lease, depending upon the lease terms. Larry Maun 713.266.2560

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Answered on 9/24/02, 2:34 pm


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