QUESTION
What happens if I default on my commercial lease in NJ?
Asked on Mar 17th, 2013 on Landlord and Tenant Law - New Jersey
More details to this question:
I have a commercial lease in the downtown area in my town. My lease term was 3 years and expires in February of 2014. My business is doing okay, but recently I gave birth to our second child and he has some health issues. I am having a very difficult time keeping up. I have asked my landlord to allow me out of the lease, but he has declined. I am a Sole Proprietorship, and the lease is in my name as well as my husbands. What would happen if I locked my doors, closed up shop and stopped paying rent? Thank you in advance for your insight.
1 ANSWER
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A Sole Proprietor is liable for the debts and liabilities of the business. Additionally, when personally signing a lease, a person accepts personal responsibility for that lease. When a business goes into default, a commercial landlord will typically bring suit to evict and to recover rent through the end of the term (minus any mitigation amount from a new tenant in the space). An attorney may be able to review your lease and determine any defenses you might have.
This does not constitute legal advice and is given for informational purposes only. Before providing legal advice I would need to evaluate your situation more fully and research any additionally applicable law. If you would like to discuss your situation, please give my office a call to set up a free initial consultation.
Colby & Associates, LLC73 Church StreetNew Brunswick, NJ 08901www.colbyandassociates.com732-609-3915
Answered on Mar 17th, 2013 at 3:27 PM