Asked almost 3 years ago - Rochester, MI
FlagI signed a retail 3 year lease in March 2010, our business has been struggling and our landlord has been asking us for months if we wanted out of our lease. They at one point said we could leave but had to leave all the business (equipment ect) behind. We said no. We asked what they would want to break the lease and they never told us. I just received a letter from the bank that the building is being foreclosed on and to make payments to them. It's going to sherriff's sale next month. We are unsure what to do, there is a subordination clause in the lease. My biggest question is with my current LL is my lease between us valid. if we wanted to take our business and leave can the landlord do anything, we know we can stay but can we go?
Once the property is foreclosed on, the old owner has no rights to let you stay or kick you out. You have some leverage with the current owner before the foreclosure sale. You may be able to buy your way out the lease. Talk to a real estate attorney immediately before the foreclosure sale, so that you still have options.
[This communication is intended as general information and not specific legal advice, and this communication does not create an attorney-client relationship.]
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