Getting out of a Commercial Real Estate Lease
Getting out of a commercial real estate lease can be complicated but it may be necessary if your business doesn’t work out as you expected or if other needs arise. Unless you or your South Florida commercial real estate attorney added in a termination or contingency clause into the lease, it may be challenging and time consuming to get out of it.
That’s why it’s so important to negotiate a termination clause into your lease prior to signing it. If you aren’t sure about your termination rights, you should hire an attorney as soon as possible to get advice on your next best step.
A termination clause will allow you to end the lease
If you happen to have a termination clause in your lease or a contingency clause, you may be able to terminate the lease in the near future. For example, a contingency clause may allow you to end the lease if you weren’t able to get the business loan that you needed. In this case, you will need to notify the property owner and you should also meet with an attorney to decide how you should go about starting the termination process.
You may be able to sublet the property
If your contract allows it, you may be able to sublet the property to another business. This involves another business moving into the location and paying the rent. However, if the new tenant backs out or causes damage to the property, you may still be legally liable for the rent and associated costs.
You will need to negotiate if you don’t have a termination clause
When your lease doesn’t have an out through a termination, contingency or sublease clause, you’ll need to negotiate with the landlord with the help of an attorney. Ending your lease without negotiating can result in a lawsuit which can be very expensive and unnecessary.
There may be other potential options to get out of the lease, such as a clause that allows you to end the lease if the landlord fails to make certain repairs or fails to take care of their maintenance requirements. A South Florida commercial real estate attorney can help you with negotiation and ensure that you have a safe way of getting out of the contract so that you won’t have to spend money on defending yourself in court.
If you are in the process of attempting to terminate your commercial real estate lease, be sure to get legal advice before taking any action. Contact Schecter Law today at (954)-779-7009 for advice or a consultation.