What protection do we need when assigning a commercial lease to the buyer of our business?

The lease is being assigned from us to our buyer of the store we are selling and the mall wants to keep us liable for the remaining 3 and 1/2 years. What kind of document should we prepare to give to the buyers who are getting the assignment and what kind of protection should we request? The lease is over $7,500 per month. The store is a franchise and is very successful and feel that they should have no problem meeting the obligation but there is always that possibility. Would a personal guarantee be a good option? If so, how does that work? Any help would be appreciated. Jeff
In Leasing Property - Asked by Jeff B. - May 10, 2013
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Frank W.
Maryville, TN

You are really "subleasing" since you have not been released from your obligations under the lease with the mall. So make sure you get the same protections the mall got in the original lease.
You may want the rent to be paid to you, with you paying the mall. That is the only way you can be certain the NEW tenant is keeping up.
MAKE SURE YOU have an attorney review the deal.

May 11, 2013
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Robert S.
Plymouth Meeting, PA

Did you personally guaranty the lease? If so, you are still liable.
If you did not, consider selling the new people the entity that signed the lease.

May 13, 2013
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