You are tied up in a commercial lease. For some reason (good or bad) you need to terminate the lease. You may be growing so fast that you have outgrown the current facility or you may unfortunately not be as profitable as you planned. How can you legally get out of your lease?
Make sure you know what you are signing up for BEFORE you sign on the dotted line. Read the lease agreement and be sure you understand what all the provisions mean. Try to think about all possible scenarios that may happen during the tenure of your lease; address any concerns you have with the landlord at this time.
There are provisions that can be written into the agreement that will allow you to cancel the lease, i.e.
Break Clause – A break clause gives you or the landlord an option to terminate a lease when the condition of the break clause is met. For example, it may be included in the lease hat the tenant or landlord can break the least at a specific date.
Assignment – Writing in a provision that allows for assignment, meaning you have the right to sell your lease right to a new tenant.
Breach of lease agreement – A lease may be terminated by you or the landlord when the other party significantly breaks the terms of the lease agreement.
In addition there are many other provisions that you want to think about before you sign a lease. What about if the lease calls for a personal guarantee? How about cost for leasehold improvements?
A lease is a complex and important obligation for any new business owner. If you enter into a lease agreement blindly, you are taking a big risk.
Visit our website for more information and to make sure your interests are protected before signing any commercial lease.
Email: info@Amerilawyer.com
