Tenants: Beware Continuing Liability

In the case of this unsuspecting business owner, he should have looked over the assignment language before signing it and requested that at the end of the first extended term, he would be let out of his obligation. The landlord had to approve the new owner (assignee) and would not likely have approved them if they were not credit worthy or had the finances to fulfill the financial obligations of the lease.

Take caution in commercial small business leasing

Take caution in commercial leasing

Unlike residential real estate where you have consumer laws to protect the buyer or lessee in a transaction, commercial real estate does not exactly fall under the same jurisdiction.

In a noncommercial real estate transaction, the agent is required by law to have myriad disclosures signed by all parties, and strict disclosure laws must be followed. In commercial real estate transactions, especially leasing, there are no specific disclosure laws or paperwork required.