QUESTION
When you have a lease what happens when the owner of the property breaks it?
Asked on Aug 26th, 2011 on Business Law - Florida
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When you have a lease on a retail property that is being knocked down and the landlord wants to put you in a comparable storefront but smaller unit on the same property, what are your options. We have a five year lease with four years left. Can we choose to go somewhere elsa and what are they liable for?
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Because your lease is commercial lease, not a residential lease, your lease agreement will specify your rights when the landlord breaks the lease. Your landlord's liability will most likely depend on the reasoning as to why the building is being knocked down. If it is because the building has been severely damaged, then most commercial leases permit the landlord to terminate the lease agreement without any liability to the tenant. If the landlord wants to tear down the building because he will make more money, etc... the landlord should have decided that before agreeing to your 5 year lease. If you want to remain in the property, you will want to argue that the landlord should buy you out of the remainder of lease agreement and pay you for the cost to move your business. The landlord's options are limited if they do not have a valid basis for evicting you from the property.
Answered on Sep 06th, 2011 at 9:13 AM
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As a general matter, the terms of the lease itself control what the landlord is permitted to do with the property -- that lease is a contract between you and the landlord, and it usually contains a provision guaranteeing the tenant's right to "quiet enjoyment" of the property. It would be a complete breach of the lease by the landlord in most cases for the landlord to destroy the property.
You should begin by looking at the lease itself. If the property is being demolished, you may have the right to "walk" and to hold the landlord liable for any difference in rent you are required to pay when you move into your new premises.
As always, you should consult with a local attorney familiar with real estate matters.
Answered on Aug 26th, 2011 at 1:13 PM