QUESTION

will I have to forfeit my lease agreement with my current landlord if he sells his business to someone else?

Asked on Dec 27th, 2014 on Business Law - Virginia
More details to this question:
I sub lease a small Deli. Out of a Exxon Gas Station. The landlord is looking to retire and sell the business to someone else. Can the new owners make me leave? Or do the lease agreement from previous landlord prevents new landlord from evicting me?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
What does your lease provide?  Unless the lease provides otherwise, it won't terminate upon sale of the busness.  The new owners of the business would have the same rights and obligations as the old.  If the lease allows the current landlord to kick you out (for example, if it provides that it can be terminated on one month's notice) then the new business owners can do so as well; if the lease prevents the old owner from evicting you, then it will prevent the new owners from doing so.  The above assumes that either the sale of the business is an equity sale (e.g. the sale of the stock of the corporation which runs the business) rather than an asset sale (e.g. the sale of the business' assets, like its real estate, trade name, supplier contracts, etc., not its equity) or, if it is an asset sale, that the new owners either assume the sublease or are aware of it when they buy the business.  If the new owners buy the assets without knowing about the sublease, they might have the right to kick you out, but you could then sue the previous owner for damages.
Answered on Dec 29th, 2014 at 8:15 AM

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