When under new ownership, is the previous lease agreement between the former owner and tenant still valid, or can the new owner terminate it?
Question Details: I am looking to purchase a Commercial Property that has plenty of upside, but there is a existing lease agreement between the current owner and tenant that would prevent me from increasing the value and performance of the property. Can I as a new owner break that lease?
Real Estate Law Answers
I am a lawyer in CT and practice in this area of the law. If the lease is in writing and has a term that is not up, you must abide by the terms of the leases. one of the documents that you exchange in the closing of the commercial property is an assignment of leases and rental payments. you may terminate the lease when it ends and either increase the rent or kick the tenant out of the space. i suggest showing the lease to the lawyer doing your closing to determine when you may terminate the lease or raise the rent.
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