Lease questions

[RBHII]

I'm looking for help on leases...probably basics for the vets of the board, but not for me!

1.) How does one protect themselves from a building being sold in terms of a lease? Does the new owner have to honor the lease and it's options?

2.) How do you go about negotiating with a landlord when buying an existing mat and trying to get a new lease? How reasonable is it to expect/get the landlord to give some givebacks in exchange for remodels, etc? I'm curious as to the 'approach' people take to coming up with # of years you want, rent you want, etc....and getting what you want!

[laundryboy]

The new owner is buying the building and all leases. He is stuck with the terms of existing leases and must honor those terms.

[RBHII]

Does it matter how long the leases are? I thought I heard that anything over XX years (seven perhaps) and the new owner can not honor it. Ever hear of such a thing?

[smellysocks]

i always have it put it the lease that i get first right to refuse the purchase of the building( im 50/50 in success), you need 20 min to buy a mat with right to sell with landlord approval. Put everything and everything you can think off, it should always be handi-cap bath, tyr to get him to pay for bringing the utilities you need to the buildding and make sure enough AIR condition in store. YOU WANT to be able to be open 24 hours, Once ytou sign it too bad, i have tried with two stores to try and get the landlord to put in auto-matic doors and no luck but i keep asking. good luck and think long term 20 yrs plus, life flies by enjoy it.

[Gary C]

as much as I hate to utter this word LAWYER. This is a place where it is good to have one laws vary in different locations and wording is very important. Just remember you can ask for anything and go from there.

Gary

[pete f]

The lease goes with the building. HOWEVER, I do know of a mat that had a lease that was not renewed when the option to renew came up. There was something in the lease about if it was not the original lessee renewing the option, the lessor had the right to refuse. The guy had bought the store only a couple years before and put in all new machines. Big hit.
Read the lease very carefully. If the landlord is a company, don't count on much give from them, if the lease is already in place, they have no reason to give. Many leases are triple net, meaning they rent you a space, what you do with it is your own expense.
Normally I have written in a sales agreement that the lease has to be acceptable to me and my terms. I always try and get more options at least. In 1 case the seller had no lease anymore, was month to month. When I contacted the landlord about the lease, she decided to double the rent. I walked from the deal, the seller got a new lease, at double rent. I also tried to buy the building from her, she would not sell. She sold it to the seller within a year later. You just can't tell sometimes.

[mike]

I think this would be a good time to slip in my


"it's much better if you can own the location" speech

I've seen too many bad things happen !

It's all very well to say the new owner has to do "this and that",

but if he doesn't, a store owners only recourse may be to sue the previous owner.

[CharlieS]

It is important to record your lease at your county/city courthouse. This will put any new owner on notice that a legal lease is in effect and that their purchase is subject to the existing lease.

In addition, this will put your lease ahead of any mortgages or liens that are placed on the property. Often, a lease includes a clause that requires you to subordinate your lease to a new mortgage, but you can often add language that requires the lender to honor your lease if all payments are current. Otherwise, your lease is automatically void in a bankruptcy or foreclosure.

Charlie