Tenant's rights on Early Term Lease due to property sale
We have a commercial lease with 2 years remaining. The landlord has drafted an Option agreement to terminate the lease early. The proposal is for us to operate one more year then the landlord can elect to buyout. This situation arose out of the potential sale of the property. The sale is contingent on the buyer obtaining approvals to convert the property to condos.
The option is silent on details of the contingencies and related specifics that cause the buyout to go into effect. In addition it states that should the contingencies be met the landlord shall have the option to terminate.
We feel the contingincies & events that will trigger the buyout be detailed in the agreement and the above phrase changed to the landlord shall terminate upon meeting those contingincies. This allows a clear understanding of events and planning whether we operate for the 2nd year or not.
Is this correct thinking from our perspective? Also are there any other considerations that we as tenants should make sure are in this agreement? We feel that if we are asked to operate under the uncertainty of 1 or 2 years that we should as clear as possible. There is an existing documented lease that we operate under. This would be an addendum.