QUESTION
I own a commercial building in Florida, Lake County. Can the lessee by his own choice stop paying me rent but pay it into an escrow account
Asked on Mar 20th, 2012 on Real Estate - Florida
More details to this question:
I am currently in foreclosure with a commercial building I own and working a way to come out of foreclosure with the banks. One of my tenants is worried that the bank will go after him for back rents and wants to pay the rent into escrow. The lessee is on a short 6 month lease with a option to extend to 5 years once he pays up the full money for the purchase of the business. It is a restaurant and I own all the items to run the business free and clear. The lease agreement states all Items and chattels remain the property of mine until the business had been paid for in full. If he does not give me the rent when due can I go ahead and give him his 3 days notice and start the eviction process.
1 ANSWER
Probate & Trust Attorney serving Sarasota, FL
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Christopher K. Caswell, P.A.
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These are very difficult situations. If the lease does not allow the escrowing of rent, then the tenant is in violation of the lease and can be evicted. If the lender has demanded that rent be paid to the lender pursuant to an assignment of rents, then in Florida there is authorization for the tenant to pay rent to the lender upon proper demand.
Be careful of tenants that start moving assets out of the property while they are in default.
This is specific to Florida law and does not constitute legal advice as the facts presented are anonymous and incomplete. This is intended for general education only and does not create an attorney-client relationship. This should not be relied on and you must seek your own attorney client relationship.
Answered on Mar 20th, 2012 at 2:12 PM