Is a lease agreement cancelled if a business is sold even if the buyer wants same location under new biz name?

In Leasing Property - Asked by Richard P. - Jan 16, 2013
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Answer(s)

Wilson G.
Broker/Agent
Fredericksburg, VA

To accurately answer this you need an attorney to read the lease on your behalf. However, generally, I would say that if someone buys a business, they are also purchasing that businesses obligations including any leases.

Jan 17, 2013
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Dalip S R.
Broker/Agent
Arlington, TX

Mostly if the business is sold, lease agreement is part of the deal, all parties buyer, seller and the landlord should agree on the terms. What happens if you buy the business and landlord would not renew the lease or triple the rent? You should read the lease carefully and consult an attorney before making any decision.

Jan 18, 2013
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Stephen L.
Broker/Agent
West Des Moines, IA

I'm a broker and an attorney; I'm licensed in Iowa and Florida for law and in Iowa as a broker. The answer to your question depends on the state where the leased property is located and/or where in the lease it states the law will apply. It's usually a venue provision. Generally speaking as the one gentleman pointed out the obligation follows the business although the lease may allow an out depending on the terms. A lawyer will need to review the law, the lease and the facts surrounding the sale. Bankruptcy sales are quite different than a normal arms-length sale outside of bankruptcy court.

Jan 20, 2013
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