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Asked in Fort Lee, NJ Mar. 25, 2020 ,  4 answers Visitors: 54
I am closing down business landlord wants me to pay 2 year rent, is it legal claim?

4 Answers

Anonymous
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Posted on / Mar. 26, 2020 03:32:03

There is a much better and simple solution. It is called filing a business bankruptcy and then your landlord cannot collect a cent from you. To properly answer your questions and address your concerns, the best way to handle this is with an in person consultation with an experienced bankruptcy attorney. Good luck. Pick the best lawyer you can find and remember one rule: a good lawyer is generally never cheap, and a cheap lawyer is generally never good so don't choose based on price.

Anonymous
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Posted on / Mar. 25, 2020 21:05:29

You can be sued BUT the LL is not necessarily entitled to rent for the entire term of the lease. The LL has a duty to mitigate damages by re-renting the space.
Also, does your lease have an "Acts of God" or "Force Majeure" clause? You may have an excuse (temporary) for non performance.
Even without such a clause, you might raise the issues of impossibility or impracticability to excuse nonperformance.
With Coronavirus the government may also provide some relief through future legislation.

Anonymous
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Posted on / Mar. 25, 2020 18:22:48

You may have some options depending upon your lease. Was your business set up as an LLC? Does the lease have a personal guaranty? You really need to speak with an attorney to determine your rights and obligations. Do it soon, as it is better to get ahead of this than to wait for him to sue you. An attorney will be able to determine your liability, negotiate a settlement and/or provide other options.

Anonymous
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Posted on / Mar. 25, 2020 18:07:33

It is important to carefully review the terms of your lease agreement. Is there a provision providing for you the tenant to vacate early based upon notice to the landlord? Does the lease potentially have an emergency type clause that allows you to exit the lease based upon a situation like what we are experiencing? What does the lease say about the deposit and whether it may be refunded (in part or in full)? Or is the three month deposit forfeit upon early termination?

You'll want to review your lease with an experienced real estate attorney to help you identify any such applicable causes and come up with a plan of action. It is likely that you will owe something to the landlord for terminating the lease early. The landlord though also has a duty to mitigate damages, so what the landlord may or may not be able to try to get from you (via demand or lawsuit) would also depend on how the space is able to be re-leased to someone else. There are a lot of folks in these types of situations right now due to the pandemic. Hopefully your landlord will see some reason and you can work out something reasonable that allows you both to move on. Good luck.

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