Triple net lease/ selling business/ lease guarantee

3 Replies

I’m an owner of a small business in woodbury mn. I have a deal to sell the business after 4 yrs of good standing in the space. In order to get the lease I had to sign a lease guarantee which expires 2021. In order to get out of the lease I am told I need to find a new guarantor. I found a candidate that appears qualified (did a financial background check). But no response from the land lord after 4 months of repeated calls. This transfer is holding up the process as the owners won’t respond. Question: in minnesota, can the owners require a lease guarantor? Upon sale of a business, can the owners hold the original lease guarantor if a suitable transferee was found? Can anyone recommend a lawyer in Minn to advise me? ThankS.

Read your lease. typically, the LL has a certain number of days to respond to disapprove, otherwise it is deemed approved. Owner can require anything he wants, not a violation of law to require financial guarantor. Yes, original guarantor is liable until released.

Will see if I know some RE attorney there.

I would recommend @Brad Schaeppi .  He is an attorney who specializes in real estate.

Thanks for the lead John. Th day I posted my manager approved the lease transfer! On to the sale.

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