if you are going to rent a commercial property and buy equipment can they charge for a build out?

the person who owns they equipment want to charge me for the work they put it to the place when it was theirs but they dont own the building someone else does. can they do that?
In Leasing Property - Asked by jessic r. - Aug 2, 2013
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Ed F.
New Canaan, CT


Aug 2, 2013
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Michael C.
San Leandro, CA

Generally no, however read the terms of your lease to be sure.
Your lease will state what is included, permitted or require approval from the landlord or governing body requiring permits. If some build out requires permits and you do not obtain permits, The landlord may have an issue with that. The lease will state if you must use a licensed contractor and also "hold harmless" "notice of non responsibility" be recorded by the landlord before work begins.

Aug 3, 2013
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Joshua P.
La Vergne, TN

Can they do this directly? probably not.
Can they increase the price of the "equipment" to reflect the installation? Likely
The key point here is that the "equipment" is evidently owned separately from the "place". I would check on this with a local real-estate attorney and make sure that is in fact the case.
Your net lease is going to govern who owns the improved building. Usually, if the "equipment" in question is installed and becomes permanently attached to the real estate said equipment now belongs to the landlord. That is part of why landlords execute "net leases". Businesses can depreciate to zero the cost of the lease as a tax matter (in the US), and the landlord winds up with an improved property at the end of the lease.

Aug 5, 2013
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Jason T.
Green Bay, WI

Not nearly enough information given. Consult a Real Estate Attorney. Speaking in generality it’s been my experience fixtures (things attached to building) become part of the building when installed. However there are many exceptions. In Wisconsin “trade fixtures” are treated differently. For example a barber’s chair may be a trade fixture. If this is a restaurant it just gets more complicated.

Aug 6, 2013
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