Broken commercial leases can come with a financial burden

Broken commercial leases can come with a financial burden

On behalf of Kadish & Associates Law Group posted in Commercial Real Estate Disputes on Friday, May 3, 2019.

Breaking a commercial lease can hold a big financial liability, so you need to understand your responsibilities if you have one and need to do away with it. One of the first things that you need to do in these cases is to review the lease to find out what terms apply to a broken lease. If your company is planning on moving to a new location or something similar, you might find out if you can sublease the current space. This could significantly reduce your financial liability.

Some landlords won’t allow a sublease. If you notice this in the contract, find out if there is any reduction in your financial penalty if you find the landlord a new tenant who can move in so that there isn’t any lack of income for the space. If your landlord agrees to this, have it put in writing so there aren’t any disputes down the road.

If your landlord isn’t willing to work with you on breaking the lease, there might not be much you can do. The exception to this is if the landlord broke the lease, and you can get out of it because of that. If this is the case, there is a good chance that you will have to fight to be released from the terms of the lease.

Taking a landlord to court isn’t something that most people would want to do; however, it is necessary if the case warrants it so that you don’t have to deal with a financial burden that shouldn’t exist. Knowing your rights and what might occur can help you as you make decisions about where to go from here.

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