Lease options, any legal folks out there?

[SSSnail]

To make a long story short, my parents own a small market/convenient store that they have invested a ton of money and time into it. They had a lease with the old owner of the property with options for the next three years to stay with the same rates previously agreed. The old lease expired this month.

In come the new owner, they denied the option and raise rent on the lot to twice the amount (everyone on the property got hit). Legally, can they deny the option?

They also took down our signs to "renovate" but nothing has been done for a month. Can we sue them for lost of income?

 

[Capt Caveman]

Who own's the options? You or the owner?

Get a lawyer.

 

[SSSnail]

Originally posted by: Capt Caveman
Who own's the options? You or the owner?

Get a lawyer.

I believe the old owner owned it.

 

[JS80]

Should have exercised option before transaction took place. We need to see the contract to give you any valid opinion.

 

[SSSnail]

Originally posted by: JS80
Should have exercised option before transaction took place. We need to see the contract to give you any valid opinion.

The sell of the property came as a surprise to all tenants. The old owner said he'd never sell it and would give it to his son. Originally the lease was for 10 years but they shorten it to 3 years, nobody thought anything of it. I haven't seen the contract myself, will ask for it.

 

[Fern]

You'll need to get advice specific to your state and local community.

Property law of this nature is state law. Sometimes a municipality etc will additional rules that apply to property in it's area too.

Fern

 

[JS80]

Originally posted by: SSSnail

Originally posted by: JS80
Should have exercised option before transaction took place. We need to see the contract to give you any valid opinion.

The sell of the property came as a surprise to all tenants. The old owner said he'd never sell it and would give it to his son. Originally the lease was for 10 years but they shorten it to 3 years, nobody thought anything of it. I haven't seen the contract myself, will ask for it.

Wondering what the thought process was allowing lease agreement to become shortened from 10 years to 3. Any business owner always wants to have the lease as long as possible. Looks like the old owners hoodwinked your parents. Shortening the lease is the biggest hint of a sale, especially if rates are low.

Looks like the new owner wants you out and even if you agree to double the rent he will find a way to kick you out.

Are you sure there wasn't a clause in the agreement that says owner must notify tenant in case of transaction, etc? Red flags going off in my head reading your story.

 

[SSSnail]

Thanks guys. I don't get involved too much with my parents' business, so I don't know the details. I learned of this when I visit them, so everything is new to me and what I've said so far are what I've learned from them. I'll ask them for the contract and see what was or wasn't there.

The thing that sucks is that the new owners of the property is a law firm. I doubt they'd do anything outside of what they know best. Just trying to find anything just to see if there are possibilities of fighting them.

 

[Carbo]

All things about options and lease options: The Naked Investor
Hit the forums. Someone there will have some insight.