Broken commercial leases have significant impacts
On behalf of Kadish & Associates Law Group posted in Commercial Real Estate Disputes on Friday, June 21, 2019.
Commercial real estate transactions are often complex, so anyone who is entering into one should have an idea of what terms they must meet and what will happen if those are broken. For many business owners, the desire to own a property is present, but some might need to lease a space when the business is starting out. This is taking a gamble of sorts because you might be on the hook for a lot of money if the business fails, and you can’t cover the lease payments.
When you sign a commercial lease, you are signing a contract. This means that you are bound by the terms of the document. You must read it thoroughly before you sign it so that you know exactly what you need to do and how to handle any issues that might come up.
One thing to remember when you sign a lease is that it is going to take a substantial issue to allow you to break the lease. Even if it states that “any breach” can terminate it, this isn’t usually the case. Instead, it will have to be a serious matter, so don’t think you can get out of the lease if the landlord makes a small error.
If you fail to comply with the terms of the lease, including paying the rent, you might face some serious consequences. This can include the landlord being able to enter the business to determine if you have abandoned it. You might also find that you owe a lot more money to the landlord if you do break the lease. Review the contract to determine exactly what happens if you don’t make the payments or break the lease in any manner.