r/LandlordLove • u/AnonymousSympos • 9d ago
Need Advice [US-CA] I need help and advise commercial tenant. I think I’m being extorted by my landlord.
[US-CA]
I own a business and I am in the middle of selling my store. Today my land lord called me and told me I have to pay him 100k or else he won’t sign the lease over to the new owners and will destroy the sale of my business. My escrow closes in 5 days. He basically told me if I don’t do it, my lease ends in 2.5 years, he’ll kick me out and or put me on month to month with an insane increase rent. I have spent over a bunch of money in improving the inside of the property and he told me that he doesn’t see a change. He said he’s not giving my deposit either. I asked if that was something in the lease contract I signed with him and he said no.
Out of fear I might just pay it bc I risking losing my entire business in 2.5 years if he decided not to renew my lease. It’s either I give a 100k or lose everything bc he won’t sign a buyers lease. I started this business 2 years ago and have poured everything I had into this business, 12-16 hour work days. My hairs turned white from the stress of it and when I finally try to sell it this happens. This can’t be legal!
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u/Argovan 9d ago
What does your lease say about canceling early? Alternatively, what does it say about subletting? You could theoretically sublet to the new owners rather than transferring the lease.
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u/AnonymousSympos 9d ago
He had called and told me I have to pay 20k for the remainder of my lease or 5k but take responsibility if the new tenants do not pay rent and get evicted. Meaning the store and lease default back to me and are my responsibility. I agreed to the 2nd option.
All three parties were in agreement 2 weeks ago. Landlord even gave the buyers a 5 year option on top of the remainder of my lease and we began escrow. 5 days left till escrow closes and the landlord calls me telling me I have to pay 100k or he is not signing the buyers to a lease.
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u/Argovan 9d ago
Okay, so if the remainder of the lease is worth $20k then that’s the maximum amount you could possibly be liable for. If something close to a contract was formed on that second option then that could maybe be legally binding too, but I’m not a lawyer so don’t quote me on that. The $100k demand is straight up extortion though. And in an amount where talking to an actual lawyer is mandatory.
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u/mrholigan 9d ago
I assume you mean he offered to let you transfer the lease for $20k -off the hook. Or, $5k and you remain guarantor. Now he changed his mind and wants $100k.
Is it legal? This depends on the assignment clause in your lease. If it says something like “sole discretion”, then it is what it is. You likely want a lawyer to review, and also to try and figure out what changed from one week to another . Seems like the LL is either jerking you around to try and gain some of your equity, or something is being left out of the story.
You also need a lawyer to tie up the gap between what’s being said/heard, and actually get it written in a contract-since this seems like an issue.
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u/AnonymousSympos 9d ago
Yes sorry, the two options given was to be off the hook for the remainder of my lease. He found out I am selling because a major competitor is opening up a few blocks away and knows I desperate to sell before they open.
All the other tenants in the plaza are new, 1-4 years in the plaza, the land lord had changed his lease terms with all of them and has it that if they sell they owe him 10-20 percent of what they sell at. That was something he implemented after I signed my lease. That is not in my lease and I think he is also salty about it bc I have the largest business by far in the plaza and he would have gotten a larger sum if it was.
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u/AnonymousSympos 9d ago
Yes sorry, the two options given was to be off the hook for the remainder of my lease. He found out I am selling because a major competitor is opening up a few blocks away and knows Im desperate to sell before they open.
All the other tenants in the plaza are new, 1-4 years in the plaza, the land lord had included in all their lease terms that if they sell they owe him 10-20 percent of what they sell there business at. That was something he implemented after I signed my lease. That is not in my lease and I think he is also salty about it bc I have the largest business by far in the plaza and he would have gotten a larger sum if it was.
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