What Happens After a 3 Day Notice to Pay or Quit in a Commercial Lease

**Geoffois** · 01-17-2010, 11:50 PM

My question involves an eviction in the state of: California

After receiving the 3 day notice from what I have researched it seems I am supposed to vacate unless I am going to fight it.

Is there supposed to be a 30 day eviction? I didn't read that there was, but only for the month to month leases. I don't plan on fighting it since business is so slow we can not pay the lease anymore.

After the 3 days are up, should I ask the landlord when he would like to take possession of the property?

Also, if the business is still running and years ago he was the original owner of it and if he takes it over does that count as some sort of compensation?

If he were to sue me later for defaulting on the lease, would the courts minus the value of the business against what would be deemed he is owed?

Is there some legal mechanism for him to sue for some monetary amount before the property is vacant for too long? My partner thinks he has to be vacant for a long time before he is able to sue for much.

There is two other people on the lease because my partner and I took over the lease from them so we are the assignee and they are the assignors. Do they need to get notified also that we are in breach and will they also get sued possibly? Or can the LL choose to just sue who he wants?

There was also a clause in the lease that said he can take possession of all the fixtures and property in the business and of the bank account up to $100k. Does that mean he gets everything and if there is a difference we owe this that so that it ads up to $100k? So for example, if the fixtures and cash equal $10k, then he is owed $90k for breach of contract?

**Mr. Knowitall** · 01-18-2010, 07:36 PM

A three-day notice to quit or pay gives you exactly that - three days to move out or pay your rent. If you don't do either your landlord can begin the eviction process. Normally a landlord who is owed rent will notify and, if necessary, evict every joint tenant named on a lease.

If your landlord exercises a lien against the property you leave behind against the money you owe him, you don't get any special bonus money. If you don't want your stuff left in the premises after you're evicted, move it out. If the property is not sufficient to satisfy your debt, you still owe the balance.

**Geoffois** · 01-18-2010, 08:19 PM

Quoting Mr. Knowitall

A three-day notice to quit or pay gives you exactly that - three days to move out or pay your rent. If you don't do either your landlord can begin the eviction process. Normally a landlord who is owed rent will notify and, if necessary, evict every joint tenant named on a lease.

If your landlord exercises a lien against the property you leave behind against the money you owe him, you don't get any special bonus money. If you don't want your stuff left in the premises after you're evicted, move it out. If the property is not sufficient to satisfy your debt, you still owe the balance.

Thank you for the information. I called my landlord. We are both nice and civil with each other since the economy is out of our control. It has been 3 business days and he said he didn't know what to do next. He said he will call me in a day or two to figure it out. I told him I was quite sure I am supposed to leave and turn the property over to him, but he had no comment. I am thinking he really doesn't want to deal with it now. I also don't want him to drag it out. Do I haven any advantage to turning it over while running? Since he gave me 3 day notice, if he doesn't give me a definite time, should I give him one?

**Mr. Knowitall** · 01-18-2010, 08:33 PM

If you and your landlord agree to a particular resolution, put it in writing. You and your landlord can sign and date it, and call it a day.

**Geoffois** · 01-18-2010, 08:59 PM

Quoting Mr. Knowitall

If you and your landlord agree to a particular resolution, put it in writing. You and your landlord can sign and date it, and call it a day.

I am fine with leaving asap and moving on to having to file bankruptcy possibly. I just don't want to be there if there is no benefit to me since I have already been served with 3 day notice. There is no possible way of turning around the business at this point. I don't want him making it look as though I have abandoned property either.

I was told by a bankruptcy lawyer I can file for bankruptcy against the remainder of the lease, and that should release be from it, even though the landlord hasn't sued me yet. Do you have any knowledge on this?

**Mr. Knowitall** · 01-18-2010, 09:39 PM

I don't know how your business is organized or if you're personally liable for the lease, but yes, if you're personally liable then a personal bankruptcy would discharge the liability. If you're getting advice from a lawyer, generally speaking, the sensible thing to do is to follow the advice of your lawyer.

**Geoffois** · 01-18-2010, 09:57 PM

It is a partnership, so I think that makes me personally liable. I had some free consultations with a lawyer, so I can't call them my lawyer just yet. Their prices vary so much. It should be fairly simple to do a ch7. Maybe I don't need one too expensive. I just need to be released from the lease and nothing else. I need to do it before housing values rise or I believe I am vulnerable for future lawsuit from the landlord. I would like to refi my house before I file BK to take advantage of lower interest rates also, but not sure if that will work.