commercial property bankruptcy
is this even legal in a commercial lease?
Right of first sale
The Landlord agrees too give the Tenant right of being the first option to buy the Leased Property at tax assessed value after total costs of renovations are applied due to Landlords death , bankruptcy , forced asset auction or other decision to sell Tenant has two(2) years to exercise said option if Tenant does not exercise the first sale option the lease is considered terminated and Landlord agrees to fully refund all renovation costs to the seller upon closing of the sale and agrees to set sale price of the Leased property to include total renovation costs except bankruptcy where as Tenant aggress to follow the guidelines set forth as the state or federal bankruptcy laws dictate
That is standard language in a commercial lease.
What that is saying, is that if the landlord dies or gets into financial trouble, you have the first option of purchasing the commerical property, but you are not required to do so. If you decide not to buy it, the lease is immediately terminated, and you are refunded for any expenses that you put out in order to renovate the space.
That is to make sure that the landlord or his estate can quickly move and break himself of all leases, if he dies or has to file for bankruptcy or gets the property foreclosed on.
It’s 100% legal.
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