My husband and I put down a deposit for a lease. Currently there is a restaurant in the space we want to lease. On our lease agreement, it states that we are to negotiate with the current lesee for the equipment, either buy or lease. We put together a sales and purchase for the equipment and the tenant never got back to use. We foolishly assumed that he was fine with the agreement, since he never got back to us or spoke with the landlord. This happened 3 weeks ago. This morning he informed us that he had put the business up for sale at 2x what he had offered us the equipment for, and two people have made an offer, but he will consider our offer first. Were do we stand legally? The landlord has our deposits, we were suppose to take possession in April.

Quote:

---

Originally Posted by Chefette

My husband and I put down a deposit for a lease. Currently there is a restaurant in the space we want to lease. On our lease agreement, it states that we are to negotiate with the current lesee for the equipment, either buy or lease. We put together a sales and purchase for the equipment and the tenant never got back to use. We foolishly assumed that he was fine with the agreement, since he never got back to us or spoke with the landlord. This happened 3 weeks ago. This morning he informed us that he had put the business up for sale at 2x what he had offered us the equipment for, and two people have made an offer, but he will consider our offer first. Were do we stand legally? The landlord has our deposits, we were suppose to take possesion in April.

---

First I would shoot my Attorney -

And then - I'm a little confused about who put the business up for sale for 2x the original price of the equipment. Are you talking about the landlord (and you appear to have a valid lease with him) selling the building or the tenant selling the equipment?

Am I correct that you signed a lease thinking you would buy the current tenant's equipment, sort of just move into his space, and now the tenant is selling the equipment for twice what you were quoted?

It would appear you have a valid lease (unless there is a specific clause about no equipment, no lease) and the tenant does not have to sell the equipment to you at other than his asking price. It would appear you and the tenant never had an agreement.

That is true, we never had an agreement, he offered the equipment to us, we counter offered, because he was selling some things, like the boiler that belonged to the landlord and not him. We never heard back from him on our offer. He called this morning, and told us that he has put the business up for sale. We have a lease with the landlord and no formal agreement with the current tenant.

In the lease with the landlord it states that all equipment is owned by tenant and we would reach an outside agreement for that equipment with the tenant. He initially quoted us one thing, now has changed his mind because someelse has offered him more.

Quote:

---

Originally Posted by Chefette

That is true, we never had an agreement, he offered the equipment to us, we counter offered, because he was selling some things, like the boiler that belonged to the landlord and not him. We never heard back from him on our offer. He called this morning, and told us that he has put the business up for sale. We have a lease with the landlord and no formal agreement with the current tenant.

---

I think you have a lease and no equipment -

OK, so when his lease is up he would have to vacate? He can't sell the business if we hold the lease in the space?

Quote:

---

Originally Posted by Chefette

ok, so when his lease is up he would have to vacate? He can't sell the business if we hold the lease in the space?

---

No, he can see his business - I've seen "business" to mean customer lists and an amount for "good will." I've seen it mean equipment and menus and the like.

It would appear to me that he can sell the business name and equipment - and recipes, I think we are talking about a restaurant; he just can't do anything with the space.

And, yes, he has to vacate when his lease is up and it's up to your landlord to remove him if he doesn't go willingly.

I don't think you bought his business; you are leasing the space from the landlord, just the space.

Thanks, that is all I needed, we didn't want his business and we didn't really want his equipment it has very little value and we had financed to replace it anyway. He can't prevent us from leasing the space and his problem is with the landlord.

I have a proposed lease with a new landlord. He is uncertain when his tenant will be vacating. I gave him a check for a deposit and he cashed it. Does this legally bind him to the lease even though the paperwork is just "proposed" at this time and neither parties have signed a lease agreement?

Your lease will take effect on the date stated, you need to talk to the landlord to be sure he has them out on that date. On your day of rent to start you are suppose to be able to take possession of the property.

Restruant equpment from used equipment dealers sell for about 10 cents on the dollar

There is no formal binding lease yet. But since you provided a deposit and the landlord accepted it, the landlord must offer you a lease before he can offer it to anyone else. If he provides a lease that you do not find acceptable, and if the two of you can't reach an agreement then you are not required to sign a lease, but the landlord may be entitled to keep your deposit as reimbursement for keeping the property off the rental market for you.

The issue is with the current tenant, he has changed his mind and is not moving so I am wodering were I stand in regard to the property.

I assume that you are the same person who originally asked this question, but with a new name. :)

You need to speak to the landlord and find out if they are going to file an eviction against the current tenant. You are not obligated to wait around for them to do it, though. If the landlord is no longer in a position to deliver the property then you can look for another place and demand the return of your deposit. You may also be able to sue the landlord for any damages you incurred (payments to utility companies for opening new accounts, moving expenses you may have prepaid, etc.) but getting it may be a bit of a stretch. Unless you've spent a substantial amount of money I wouldn't bother suing.

Quote:

---

Originally Posted by LisaB4657

I assume that you are the same person who originally asked this question, but with a new name. :)

You need to speak to the landlord and find out if they are going to file an eviction against the current tenant. You are not obligated to wait around for them to do it, though. If the landlord is no longer in a position to deliver the property then you can look for another place and demand the return of your deposit. You may also be able to sue the landlord for any damages you incurred (payments to utility companies for opening new accounts, moving expenses you may have prepaid, etc.) but getting it may be a bit of a stretch. Unless you've spent a substantial amount of money I wouldn't bother suing.

---

I have had a number of back and forths with this person on another thread - she is talking about a business lease (for a restaurant), njot a personal residence - unless she has both things going on at the same time.

Don't know if it makes a difference but it's the same situation. I guess she didn't care for my answers and advice!

I've combined the threads here to avoid further confusion.

Thanks for the heads up! But in this case the answer is still the same. Since there is no written lease in effect the landlord is not obligated to evict the current tenant. However, since the landlord accepted the deposit the OP can sue for out-of-pocket costs up to this point.