QUESTION
Commercial RE for Sale and Current Lease Agreements
Asked on Sep 19th, 2015 on Real Estate - Colorado
More details to this question:
I am purchasing commercial real estate and would like to increase the rates closer to market value. Once I take ownership is the current leases null? If they are not null what are my options as the new owner. Current owner is renewing a few in September can I request that he add a clause in the new lease agreement that if the building is sold during the lease term the lease is no longer valid?
1 ANSWER
3 Awards
When you purchase the real estate, you become the Landlord in the leases, i.e. you can enforce the lease but the tenant has the right to maintain possession so long as he is not in violation of the terms of the lease.
Ask the seller not to renew the leases without your approval as you will ultimately be bound by those terms.
Answered on Sep 20th, 2015 at 3:48 PM
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