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What kind of lease agreement do I need if sell our 42 seat restaurant

3 or 5 year lease, ask for 1st & last month rent. What can or do we do to protect ourselves in anyway.
We will be trying to sell property with tenant after sell of business etc ???.

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The BAF Group LLC
MD

How much time do you have? This question demands that we know about 50 more things about the sale; and even then, you really need to involve a Real Estate Attorney or an Agent in your State. Because the answers can change from state-to-state.

But briefly, why not sell the whole thing, rather than in pieces? The Buyer would have a better chance getting financing if the property is included. Moreover, you need to think about a 5-year lease with a 5-year option, if you have to sell with a lease in place. If the Restaurant Buyer is financing the business, the Bank will want the term of the lease to at least cover the number of years in the loan. Otherwise, the Bank will not lend anything on a business where the term of the lease is not guaranteed for that long. As for protecting yourself, you need to see someone like an Attorney or a Commercial Real Estate Broker than can provide you with a lease that protects your interests.

May 21, 2009

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