The Lease Is A Lynch Pin In Many Business Acquistions Thomas Pedreira
Q.
I have purchased a laundromat and was told that the lease was transferable! I have been informed by the owner of the property that this is not true. What can I do legally do to keep the business?
-- Anonymous
A.
Your situation is another example that underscores the importance of having legal representation since any lawyer worth his salt would have made sure that obtaining the landlord's consent to assigning the lease was a condition to closing the deal. So, don't make the same mistake twice -- go hire a lawyer now. Once you do, the first thing he will want to do is to look at the documentation. Hopefully, an assignment of the lease to you is covered in the purchase contract so that you can put pressure on the seller to work with the landlord. Hopefully, too, you didn't pay all cash up front so that you still have some leverage with the seller. Also, your lawyer will want to look at the lease itself. It may state that the landlord's consent to an assignment cannot be unreasonably withheld, which may give you a foothold to convince the landlord to let you take possession. However, on a commercial lease of property were hazardous materials may be an issue (by reason of the Laundromat), you may or may not be able to convince the landlord to let you assume the lease. If he still refuses, you best remedy may then be to sue the seller to try to rescind the deal and get your money back.
