I am the legal officer of a small-business restaurant that was incorporated. The lease is up and we are in a month-to-month leasing arrangement now with the property owner. I want to close the business and leave it free and clear. However, the landlord insists that the unit has to be cleaned out completely before leaving. I cannot find a buyer and not sure how to liquidate everything in the unit. How am I legally liable if I were to just walk away? Are my personal assets/interests liable if it is a corporation?
2 Answers from Attorneys
It depends on all the lease documents you signed. I would need to review everything in order to properly advise you. Tim Klisz
It is unlikely that the Lease requires you to "clean out the unit completely" as the Landlord insists. Nonetheless, the terms of the Lease govern and you will have to comply or lose part or all of your security deposit and perhaps suffer damages. It is also unlikely that you will personally be liable; that is dependent upon the manner in which you vacate the premises and the manner in which you have conducted the corporate business. As you can see, further review of your situation is required for a reliable response. Our office can review your lease and situation if you so choose.