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September 24, 2009Here’s the situation:
My commercial tenant is leaving his rental space. We agreed to end the lease on certain conditions. I had no real problem with how it all played out, except for when I discovered a large piece of equipment that he told me he wouldn’t be taking with him. At first I was kind of mad and I demanded that it be taken away. He said it would be a major hassle to do this. However, our agreement says he must do it.
For a while I wasn’t sure what to do.
Then, all of a sudden, someone said they’d pay me decent money for the piece of equipment. And they said they would handle the dismantling and removal of this heavy item as well.
While I am weighing this offer, I am wondering:
Could my tenant come back and demand the equipment, despite having verbally telling me he would be leaving it and I would just have to "deal with it"?
Could the tenant demand a share of the sale?
If I sell it, can I still sue the tenant for breach of the lease for not taking it away?
Well, you can’t sell it and sue for damages, because you’ll make a profit and there are no damages to claim.
And you can’t sell it right now without permission from the ex-tenant - that’s called "theft by conversion" and it’s treated as if you stole the piece.
I’d suggest that you call the tenant and ask if he will sell it to you for $2 and you’ll agree to give him a release for liability. He might go for that.
Get an agreement drafted and have it signed on both sides.
When it’s signed, sell the equipment.
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Horaayy..there are 15 comment(s) for me so far ;)
just get in contact with the tennant, see if something can be sorted out.
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He left it so you probably could sell it, but if you sell it you can’t sue him. Decide which will be more profitable and do it.
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No, he’s an ass.
No, it’s his own stupid fault for leaving it there.
Probably not, you’d just be greedy then.
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It depends on your jurisdiction how long you must hold the property before disposing of it. However, in all jurisdictions the property, at some point, becomes abandoned property and is yours to sell unless he returns before you sell it.
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As soon as you sell it, he will ask for it back and then sue you for 10x the money you sold it for. There maybe some legal actions you can take against him, via the courts. Or have him sign it over to you. Don’t sell it without proof it was yours to sell.
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1. Sell it
2. Don’t sue the former tenant
3. If he comes back and makes a stink about it, pay him off
Even if he comes back and demands a portion of the proceeds, you are still up, you made $$$
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Well, you can’t sell it and sue for damages, because you’ll make a profit and there are no damages to claim.
And you can’t sell it right now without permission from the ex-tenant - that’s called "theft by conversion" and it’s treated as if you stole the piece.
I’d suggest that you call the tenant and ask if he will sell it to you for $2 and you’ll agree to give him a release for liability. He might go for that.
Get an agreement drafted and have it signed on both sides.
When it’s signed, sell the equipment.
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I would get something in writing from the person, SIGNED by him, saying that he no longer wants or needs that *enter specific type of equipment here* and he declares that you are free to do with it as you choose.
Do NOT do anything with it before then.
If he does this, and you sell it, you cannot then sue him. And the tenant cannot demand a share of the sale.
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JUST IN CASE GET YOUR EX TENANT TO PUT IT IN WRITING THAT HE IS LEAVING THE PRODUCT IN YOUR HANDS AND THEN YOU HAVE THE RIGHT TO SELL IT. JUST MAKE SURE YOU GET IT IN WRITING OR EVEN GET HIM TO SAY IN AND RECORD THAT SO HE CAN NOT COME BACK LATER AND SAY HE WAS GOING TO GET IT AND YOU SOLD IT AND HE WANTS THAT MONEY. JUST COVER YOUR BUT.
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Just say someone offered to take it and you want to make sure he has not changed his mind and could he please send you something in writing. (make sure it is signed)
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His lease is over, you have done the final walk through.
All is finished as far as he is concerned.
You can legally dispose of it in any way you see fit.
If you sell it, you will have made a fair profit and can sue for breach of lease, but the amount you sold it for would be deducted from what he owes you and you may even end up having to pay him an overage.
Just sell it and forget about it.
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All the answers are good, but really — To save yourself a lot of grief - contact your attorney with this question. Each state has different rules/regulations/laws pertaining to this and you may get advice that doesn’t comply with your state.
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former business owner
Take the money and run! I don’t know how long the equipment has been there, but if it has been there for any length of time, and it is a problem for you the rent the space with this thing sitting there, you have a perfect right to get rid of it! Take this person’s offer to dismantle it and give you some money. You will be ahead of the game. But, remember, IF you decide to sue him - that’s going to cost you money and perhaps having to go to court! If I was you, give the guy the OK to remove it, and treat it as abandoned property! I doubt if the tenant will come back, but if he does, tell him it disappeared during the night! LOL! Just kidding! Seriously, tell him you threw it in the trash!!!
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Ask your tenant, and make sure he doesn’t want it anymore.
Then, if he doesn’t, you may sell it.
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You present an interesting scenario. At first impression, I would say that the tenant’s abandonment of the property leaves it for you to do with as you please. However, the mention of the contract stating that it was to be removed and the current offer for sale does complicate it. If you have his abandonment in writing, then I would say that you are clear to sell it and keep the proceeds. If the abandonment is only verbal and it has not been very long since this all took place, lets say less than a month, then he is very likely to want the proceeds from the sale or at least a negotiated split thereof. If it has been more than two months since the abandonment, then I would not worry about it.
The general rule is that you have suffered a loss by being forced to remove this equipment before you can rent the space again. You are entitled to recover your loss by the sale of the abandoned property. This happens all the time in storage units.
I would contact your former tenant one more time and tell him that you have an offer to buy his piece of equipment. Offer to share the proceeds with him by subtracting the calculated loss you suffered by virtue of the abandonment. I am sure that he will want to take you up on the offer and you will have made a friend instead of an enemy.
My first answer above would be the legal one and the last answer would be the human thing to do. Your choice.
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CA atty