Author: Benjamin J. Smith

Is a commercial tenant’s leasehold interest protected when the property is sold in a bankruptcy trustee’s sale?

In the Matter of Spanish Peaks Holdings II, LLC Facts: A commercial landlord and a tenant enter into a long-term lease. The landlord later files for bankruptcy. The bankruptcy trustee sells the property to a buyer in a bankruptcy trustee’s sale, stating it is free and clear of the tenant’s lease encumbering the property. The bankruptcy trustee does not formally reject the terms of the tenant’s lease. Claim:  The tenant seeks to retain possession of the property, claiming they have a right to do so since federal bankruptcy law protects a tenant’s leasehold interest in a property after a bankruptcy. Counterclaim:...

Read More

Is a lender who forecloses on a leasehold estate required to honor the lease agreement as the tenant’s successor-in-interest?

BRE DDR BR Whittwood CA LLC v. Farmers & Merchants Bank of Long Beach Facts: A landlord and tenant enter into a long-term commercial lease. The lease terms state the tenant may encumber their leasehold interest with a mortgage, designating the lender as the successor-in-interest and obligating the lender to perform under the lease. The tenant obtains a mortgage secured by their leasehold estate, then defaults. The lender forecloses on its interest and takes possession of the property. At the landlord’s request, the lender confirms it is the tenant’s successor-in-interest. Prior to expiration of the lease, the lender stops...

Read More

Polls

Will an increase in income inequality between the wealthiest and the poorest lead to falling real estate prices in California?

View Results

from POLL: Will an increase in income inequality lead to falling real estate prices?

Check out our previous poll here.

Recent Comments

Featured Comment

[M]ost people join CAR in order to obtain the forms, not for the other services. And if there were any viable choices for agents, CAR would immediately suffer as much as a 40% to 50% loss in membership. […] CAR owns the “for profit” company that produces their software, with top officers in CAR sitting in top management spots in ZipLogix. This is the living, breathing definition of a conflict of interest. […] On their website they parade their forms software as “free” when cost of their forms software for non-members as a percentage of their actual membership cost speaks for itself.

- William Tormey, on CAR is "dangerously close" to having a monopoly on real estate forms, counters PDFfiller

Respond to the comment or read the full article

Newsletter Sign-up

Get real estate news straight to your email.




Suggest an article

Suggest an article

 

Verification