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#1
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Commercial RE Question
Buying a business.
PO leases the bdlg and I will sublet. Do I need to pay for the security deposit? Currently he has one month's rent down, 2 years remain on the lease. The PO will be staying on-board, so things need to remain friendly. TIA
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'07 Yukon 2500 '13 Subaru Outback 3.6R '13 Orbea Carpe 9-speed Currently Benzless Formerly: 300TD, S600, E55, 560SEL ---= The forest breathes, listen. -Native American elder |
#2
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The terms are strictly between you and the PO. If he forgives the security deposit from you, he's still on the hook with the actual owner.
Most situations would call for you to provide the security deposit to insulate him against the loss. However, everything is negotiable. |
#3
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Thanks Brian,
That was the way I understood it, but wanted some more input.
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'07 Yukon 2500 '13 Subaru Outback 3.6R '13 Orbea Carpe 9-speed Currently Benzless Formerly: 300TD, S600, E55, 560SEL ---= The forest breathes, listen. -Native American elder |
#4
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Make sure the leasee has legal contractual ability to sub-lease. In most cases they can but need the written permission from the leasor per the lease agreement.
Last edited by Medmech; 06-26-2007 at 09:08 PM. |
#5
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Thanks MM,
The sub-agreement will be in the leasee's hands before the closing.
__________________
'07 Yukon 2500 '13 Subaru Outback 3.6R '13 Orbea Carpe 9-speed Currently Benzless Formerly: 300TD, S600, E55, 560SEL ---= The forest breathes, listen. -Native American elder |
#6
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Quote:
disclaimer: my new auto spell check is having problems with RE lingo. |
#7
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Yep, owner. Lessor, leaser, laser, loser, lazer
__________________
'07 Yukon 2500 '13 Subaru Outback 3.6R '13 Orbea Carpe 9-speed Currently Benzless Formerly: 300TD, S600, E55, 560SEL ---= The forest breathes, listen. -Native American elder |
#8
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Quote:
Also get an estoppel certificate from the Lessor that all rent is paid, the prime lease is not in default and Lessor does not have any claims against Lessee. Are you permitted to pay rent directly to Lessor, or do you pay Lessee and he pays Lessor? If the latter, and Lessee does not pay, will you get notices of default and the right to cure? Does your sublease give you the same right? There are a number of wrinkles. An hour or 2 of a real estate lawyer's time could be worthwhile. |
#9
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It seems to be covered in the previous remarks. I agree with all of them.
Tom W
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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.[SIGPIC] ..I also have a 427 Cobra replica with an aluminum chassis. |
#10
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Thanks for the advice Al.
__________________
'07 Yukon 2500 '13 Subaru Outback 3.6R '13 Orbea Carpe 9-speed Currently Benzless Formerly: 300TD, S600, E55, 560SEL ---= The forest breathes, listen. -Native American elder |
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