Results 1 to 7 of 7
  1. #1

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

    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?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: What Happens After a 3 Day Notice to Pay or Quit in a Commerical Lease

    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.

  3. #3

    Default Re: What Happens After a 3 Day Notice to Pay or Quit in a Commerical Lease

    Quote Quoting Mr. Knowitall
    View Post
    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?

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: What Happens After a 3 Day Notice to Pay or Quit in a Commerical Lease

    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.

  5. #5

    Default Re: What Happens After a 3 Day Notice to Pay or Quit in a Commerical Lease

    Quote Quoting Mr. Knowitall
    View Post
    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?

  6. #6
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: What Happens After a 3 Day Notice to Pay or Quit in a Commerical Lease

    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.

  7. #7

    Default Re: What Happens After a 3 Day Notice to Pay or Quit in a Commerical Lease

    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.

    1. Sponsored Links
       

Similar Threads

  1. Rent and Utilities: Commercial Lease Rate of Rent After Expiration of Initial Lease Term
    By Norsemanu in forum Landlord-Tenant Law
    Replies: 1
    Last Post: 05-26-2011, 07:00 AM
  2. Replies: 2
    Last Post: 02-15-2010, 07:01 PM
  3. Eviction Notices: Lease at the End of the Leave but Before Notice to Quit Date
    By ssaechai in forum Landlord-Tenant Law
    Replies: 3
    Last Post: 10-26-2009, 01:25 PM
  4. Giving Notice: Commercial Notice to Quit 45 Days
    By Benstay in forum Landlord-Tenant Law
    Replies: 1
    Last Post: 06-10-2009, 06:51 PM
  5. Eviction Notices: Notice for a Commercial Long-Term Lease
    By toughtimes8 in forum Landlord-Tenant Law
    Replies: 2
    Last Post: 09-22-2008, 10:54 AM
 
 
Sponsored Links

Legal Help, Information and Resources