QUESTION
Is a commercial lease valid if there is a contradiction in one clause?
Asked on Sep 25th, 2015 on Real Estate - California
More details to this question:
I have a lease agreement with a tenant in a commercial property to whom I've given written permission to sub-let a portion of the premises. The Subletting clause in the lease states that the lease shall not be sold nor assigned, then goes on to state that cumulative monthly rental payments by sub-tenants shall not exceed 120% of the lessee's rent. It is my understanding that when sub-tenants pay more rent to the lessee than the lessee pays to me, the landlord, the lessee has effectively sold the lease, and that this is illegal. Is this correct? Is there statute that addresses this illegality? If so, can you provide that to me? Also, is a lease agreement that contains such a contradiction, a valid lease, or should it be amended?
1 ANSWER
2 Awards
This is going to be a contractual and not a statutory issue. Typically a lease agreement will state that the lease may not be assigned without the consent of the landlord. Are you certain that your lease has an absolute prohibition on assigning the lease or does it state that it can only be assigned if you consent?
Answered on Sep 28th, 2015 at 5:04 PM