Triple net lease/ selling business/ lease guarantee

Triple net lease/ selling business/ lease guarantee

Residential Landlord · Houlton , WI · Member since 2014 · 56 posts · 35 votes
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.
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  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    8y

    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.

  • Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
    8y

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

  • Residential Landlord · Houlton , WI · Member since 2014 · 56 posts · 35 votes
    8y
    Thanks for the lead John. Th day I posted my manager approved the lease transfer! On to the sale.
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