Find Articles by Topic:

Nolo Logo

Since 1971, Nolo's goal has been simple: Make America's legal system accessible to everyone. Our website, books, software, online legal forms and lawyer directory help millions of individuals, businesses and nonprofits solve their legal problems each year.

Small text sizeMedium text sizeLarge text size Print this page
 

Can a new owner change the terms of a commercial lease?

Question:

I run a massage and skincare business. My building was just sold. I did not know it was for sale. I have a three-year lease, which mentions nothing about new owners or changes to the building. The new owner wants to raise my rent and paint the building to match his gas station. Obviously, this would not be good for my business. Any advice?

Answer:

Honor is on your side -- a weighty weight that just may tip the scales in your favor. When a building is sold, normally the new owners must honor the terms and conditions of existing leases. If your old landlord could not raise the rent until the three years went by, neither can the new ones.

However, if the building was sold at a foreclosure sale -- as is happening often these days -- and the mortgage or loan was recorded before your lease was signed, your lease may be wiped out by the foreclosure sale.

To find out where you stand, look at your lease and search for a clause that includes the terms "Nondisturbance," "Attornment," and "Subordination." These hairy legal terms describe an agreement between landlord and tenant that even if the mortgage or loan was recorded before the foreclosure sale, your lease will survive the sale. Making sense of these clauses can be difficult -- you may want to consult a lawyer.

Painting, however, is another story. Owners are usually free to do maintenance and refurbishing as they wish -- as long as the projects do not make it difficult or impossible for you to run your business. Let's hope the gas station is not puce.

Nolo posts updates to the latest versions of books and software when major legal or practical changes occur. To see if your product has had a recent update, search for that book or software and visit its product page.

All Your Business Space & Commercial Lease products >

Find A Lawyer

Enter zip or city, state ("Boston, MA")

Attorney Profiles

Attorneys: Get Listed

Advertisement

The Company Corporation Ad

Nolo Partner

This service is operated by JustAnswer.
Nolo provides no guarantee of the information provided.