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  1. #1
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    Jan 2015
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    Default How to Evict a Commercial Subtenant With No Written Lease

    My question involves an eviction in the state of: North Carolina

    We are the sole leaseholder in a commercial space. For the past few years we have shared our space with another business without involving them in any type of written lease or sublease - an arrangement which was approved by the landlord -, our arrangement was entirely verbal.

    The other business is current on their share of the rent, however they have become increasingly uncooperative and our working relationship is no longer sustainable. Additionally, we need the space they occupy to support our growth.

    It is unlikely they will cooperate with any suggestions/requests to leave the premises within 60-days - a reasonable amount of time that has been recommended we offer them - so we anticipate the need to take legal action. How should we proceed from here to ensure that 1) they leave the space within 60-days, and 2) we do not expose our business to any legal risk.

    Thank you in advance.

  2. #2
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    What are the terms of your verbal lease with the subtenant.

  3. #3
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    Quote Quoting jk
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    What are the terms of your verbal lease with the subtenant.
    There are no explicit terms regarding eviction. Their presence was originally intended to be temporary arrangement that has continued indefinitely.

  4. #4
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    so:


    What are the terms of your verbal lease with the subtenant.


    You didn't answer the question.

  5. #5
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    Has this subtenant paid you rent? If so, how much and how often? There have to be terms. Or did you just say, "sure, you can operate here, you don't have to pay me or anything"? If you want useful advice or commentary you are going to have to disclose more details than you have. There is a reason you need to provide more details. For example, the terms will determine what kind of notice you have to give to terminate the subtenancy. Nobody discusses terms for eviction when they enter into a verbal leasing arrangement. That is not the question and it doesn't matter. The law determines this. So, what were the terms of the verbal lease agreement between you?

  6. #6
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    The only major explicit terms are that the subtenant pay 40% of the monthly rent (including CAM, RE tax, trash, etc.) and utilities. They pay their %age of the rent directly to the landlord.

  7. #7
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    I suggest that you read this, particularly the materials starting at page 5.

  8. #8
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    ^ Thank for that.

    I read through most of it, but I'm not sure how applicable to my company's situation it is, mainly due to the fact that my company and the subtenant company never specified a length of time for the verbal lease or expiration date. Additionally, the subtenant company is not in default (they pay their share of the rent, however will not cooperate with our requests to pay it directly to us instead of the landlord).

    This excerpt from page 4 seems relevant:

    If the term of the lease expires and the tenant has not renewed the
    lease but remains on the premises, the tenant is called a holdover
    tenant. The landlord can elect to treat a holdover tenant as a trespasser
    and file a summary ejectment action against the tenant: no
    other default is required.
    From what I gather (not necessarily from this document) since there is no written lease between my company and the subtenant company, and no expiration date was specified for the verbal lease, the subtenant is considered month-to-month/holdover. Does this mean a summary ejectment can legally be filed?

  9. #9
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    It's applicable. If you (or is it your boss) don't have a written lease or any other enforceable agreement for a longer tenancy, the tenancy would be periodic, with the rental period defined by the amount of time between rent payments. You need to give proper notice to terminate the tenancy and, if they don't vacate, proceed with the legally permitted remedy of your choice.
    Quote Quoting jk
    View Post
    and that is where why they are paying your landlord is important. If they are your tenant, they owe you. If they refuse to pay you, they are delinquent in their rent.
    There's knowledge of, and acquiescence to, the payment to the landlord, so that won't fly.

  10. #10
    Join Date
    Jan 2015
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    ^ Thanks both of you. We've met with our landlord and they will be guiding us on this issue moving forward.

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