QUESTION

My tenant is behind in rent and other monetary obligations detaile in the lease. What can I do to secure my claim?

Asked on Jan 16th, 2023 on Real Estate - Connecticut
More details to this question:
Restaurant tenant has a valid lease. They have not been open for business for the last several months. They have attempted to maintain lease payments, however they were always late. Recently, they said the business was being sold and the buyers wanted to take over the lease. I keep getting statement buyer is doing "due diligence" and was promised everything would have been finalized by Tues., 1/10/2023. My recent attempts to reach the tenant have been unanswered. At this point perhaps we can put a lien on their real estate, and business assets/equipment. My lease has them committed to a personal guaranty.
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1 ANSWER

Commercial Real Estate Attorney serving Danbury, CT at Jones, Damia, Kaufman & DePaul, LLC
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Ordinarily, to answer a question such as yours, I would ask to see a copy of the lease. The lease may determine how best to proceed. If the tenant or guarantor has assets subject to being attached, then an attorney can either request a hearing seeking an attachment or issue a writ of attachment (if there is a commercial prejudgment remedy waiver section in proper form in the lease). Before undertaking to seek an attachment, we suggest evaluating whether any real estate owned by the tenant or guarantor has equity in the property. This would involve having a title search done on the subject property or properties. The same would apply as to assets such as equipment. For example, if the equipment assets are subject to a UCC lien in favor of a bank or other lender, and the value of the equipment is less than the lien, it may not be worth seeking an attachment. Regardless of the above, you can still proceed to seek an attachment on the assets of the tenant and/or guarantor, which may result in you getting paid quicker if there is indeed a transaction pending to sell the assets of the tenant. The above does not constitute legal advice and is only given as a response to your questions in general terms. You should not rely upon the statements above and you should consult with an attorney before proceeding with any action against your tenant. 
Answered on Jan 23rd, 2023 at 7:40 AM

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