A Broward County business that was a party to a commercial lease agreement found out the hard way recently one of the many ways that such an agreement can go wrong and leave you with no recourse in the courts. That problem, in the Broward business’s situation, was an imperfectly drafted lease agreement. Don’t let that pitfall ensnare you. Be sure that the commercial lease agreement you sign will protect your business interests fully and be recognized as enforceable by the courts. To be sure you are executing the right commercial lease agreement, start by retaining the services of a skilled South Florida commercial lease attorney.
Z.C. was the owner of that Broward County business, which rented wave runners, parasails and scuba diving equipment. In 2007, the rental business inked a lease with a hotel’s owner that allowed the business to operate on a beach adjacent to the hotel. The lease agreement stated that the term of the lease was from September 18, 2007 until “the demolition of the property.” The parties worded the contract that way because the owner allegedly desired to allow the equipment rental business to stay as long as he operated a hotel there. (The owner allegedly was considering demolishing the hotel and converting the property into condominiums and, if that happened, then the equipment rental business would be expected to leave.)
Three years after the parties signed the lease, the owner sold the property rather than converting it into condos. Several months after the transaction, the new owner and operator of the hotel terminated the lease. The rental business sued the new hotel owner for breaching the lease, but the hotel owner emerged successful from the lawsuit.