Legal Question in Business Law in Washington
two leases at one time/excuse of giving money
i have a commercial lease for 2 more years, but closing my store.
i told landlord that i am not staying here anymore, but didn't sign anything. i found a new potential tenant and i had a verbal agreement with him that he'll pay me $6,000 for store's improvement and retail fixtures. i told him that i want receive this amount before signing a new lease.
however, they sign a new lease (not sublease) too fast without my permission. this tenant hasn't paid me for improvement the store, as we agreed before. when i found out that new lease is signed, i immediately required him to pay me NOW, but he made exuses and promised to give me the money only on the day i am moving.
my landlord requires in writing that i am moving, but i cannot do that until i don't receive the money as agreed. I don't want to stay here, but i don't feel safe and don't know how to get my money since new tenant is not going to give any money until I move. i don't want to involve landlord. i offered new tenant this way: i will make a promissory note/list of furniture i must leave on the day of moving. new tenant said ''no''.
he wants me to trust him, and wants to write the same note that he will give me money in moving day.
how can i get my money now?
1 Answer from Attorneys
Re: two leases at one time/excuse of giving money
Wow, interesting situation. Although I would need to read your lease before giving any firm and final opinions, I think your landlord needs to get your written notice of intent to vacate before releasing the space. He or she has not done that, but has already signed a new lease, and so is in a tough legal position. They have signed a contract that they cannot perform. So you have the landlord in a corner.
As for the new tenant, I absolutely would not trust him. If he intends to give you the money, I do not understand why he is not willing to sign an agreement to that effect now. After all, a written agreement would also bind you to leave the fixtures in good condition for the new tenant and not resell them to someone else.
At the same time, you are also in a tight spot. I would need to know more about what type of improvements and what type of fixtures, but if (hypothetically) the new tenant DIDN'T want those fixtures, you might be legally obligated to restore the premises to the previous condition. (Much also depends on the terms of your lease with your landlord.) Also, depending on the terms of your lease, if you refuse to vacate and your landlord does not find another tenant, you may be on the hook for two more years of rent, even though you close your business.
Also, you do not say whether you are a sole proprietor, have a corporation or LLC with assets, or a corp of LLC with no assets. Your best strategy to get your money will also depend on the answer to that.
There are enough "ifs" in your situation, that I would urge you to spend the amount needed for an hour or two with an attorney to consider your options. It does not mean you need to hire the attorney to handle the problem for you, and I understand if you are closing a biz, money is tight. However, there are enough details that will make a difference about what is your best strategy to get your money, that lawguru will not give me enough room to talk about all the "if-then"s.
Good luck, and please contact me if I can help.
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