QUESTION
What can we do if the owners changed the terms of the lease?
Asked on May 29th, 2013 on Landlord and Tenant Law - North Carolina
More details to this question:
Hi, we have a 25 year lease in a motel. We borrowed $170,000.00 over 7 years on another property with a bank. We got the loan because of our 20 year lease 5x5 which is the banks security. Bank wants to see the lease papers as the first 5 years are over. We have been putting the bank off because the owners in Singapore no longer want to have the 20 year lease. They are saying 5 years and no more. They are changing the 20 year contract to 5 years. Bank has given us till the 7th to produce the lease. We have paid all the rent up to the end of the month. How can we fight this? Time is not on our side. The bank will take everything we have worked so hard for. This place is our life our home. We wouldn't even have the money to move or a car. Everything is in the business name. Showing a 5 year contract to bank, they will remove us from our property. We don't know what else to do.
4 ANSWERS
Litigation Attorney serving Bakersfield, CA
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Dessy & Dessy
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Show the bank your 25 year lease and refuse to Agee to any alteration of the 25 year lease with your landlord.
Answered on May 29th, 2013 at 9:24 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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If the lease had not been signed by the lessors, then you should not have gone to the bank to borrow the money. There is no way to fight that. If the lessor signed the lease, then produce that lease.
Answered on May 29th, 2013 at 8:32 PM
Business Law Attorney serving Livonia, MI
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Gerald A. Bagazinski
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Show them the first lease. What terms would allow the parties to reduce the lease. You need to contact an attorney and seek a declaratory judgment.
Answered on May 29th, 2013 at 7:58 PM
Family Law Attorney serving Durham, NC
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Morelos Law Firm
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Are you talking about a commercial or residential lease? Either way, assuming it is in writing, the terms of that contract will govern as to the rights of both parties, including how/if terms can just be changed. Typically it requires mutual consent of both sides so it does not sound proper if the owners are trying to unilaterally change things on you, unless due to a breach by you, or the lease is ending, or it's allowed in the lease. You should consult an attorney ASAP to review your documents and likely send a letter to the owners.
Answered on May 29th, 2013 at 7:58 PM