Does a standard commercial lease state that a new owner is relieved of all lease obligations from the previous owner if the property is sold?
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Does a standard commercial lease state that a new owner is relieved of all lease obligations from the previous owner if the property is sold?
Clause: In the event the holder at any time of the Landlord’s interest under this Lease shall sell or transfer the Landlord’s interest in the Building, or if for any other reason such holder shall cease to hold the interest of the Landlord under this Lease, such holder shall be and hereby is entirely discharged, released and relieved or all covenants, obligations and liabilities of Landlord hereunder as of the date of such sale, transfer, or ceasing to be the holder of the Landlord’s interest under this Lease, provided that such holder shall continue to be entitled to the benefit of all indemnities by Tenant in favor of Landlord provided in this Lease.
Asked on June 4, 2012 under Real Estate Law, New York
Answers:
david slater / david p.slater, esq.
Answered 11 years ago | Contributor
Not automatically. Generally, the new LL takes the premises subject to existing leases. Read the lease involved.
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