QUESTION
What option do I have if I have a lease contract for 3 years and have to cancel it after 1 year?
Asked on Oct 14th, 2013 on Landlord and Tenant Law - Oklahoma
More details to this question:
I am the sole shareholder of a corporation that is about to be dissolved (I am retiring). My current lease agreement is 1 year old, and has 2 years to go. The landlord refused to insert a mechanism to terminate the lease early. Paying off an additional 2 years on a business lease I am not using is not an agreeable solution, but the landlord is not expected to negotiate this. What are my options?
4 ANSWERS
Litigation Attorney serving Bakersfield, CA
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Dessy & Dessy
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Your best option would be to find a subtenant to generate income towards the remaining lease obligation. You should look over your lease to determine the nature of any limitations or restrictions on assignments and subleases. You could also consider offering the landlord a lump some payment, such as a payment in advance for six months rent, an exchange for a release. Depending on your financial circumstances, you may also wish to consider filing a bankruptcy.
Answered on Oct 15th, 2013 at 11:52 AM
First, who signed the lease - you or the corporation? If the corporation is the lessee, then you are not personally liable. Second, if you are the lessee, the landlord must make reasonable efforts to mitigate his loss of rental income by, at least, demonstrating in any lawsuit against you that he was attempting to find a new tenant.
Answered on Oct 15th, 2013 at 11:28 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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See an attorney to determine if you and the business, or the business alone, is liable for the remained of the lease. You can attempt to deal with the landlord, or you can attempt to sub-lease the premises.
Answered on Oct 15th, 2013 at 10:53 AM
Do you have a right to sublease?
Answered on Oct 15th, 2013 at 10:52 AM