If our former landlord is threatening legal action, what can he do and what rights do we have if we never signed a lease?
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If our former landlord is threatening legal action, what can he do and what rights do we have if we never signed a lease?
We closed our business and owe 4 months back rent.
Asked on May 10, 2012 under Real Estate Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Even if you never signed a lease, you owe rent for the time you actually were in residence, at the agreed upon rate. Therefore, if you did not pay rent for four months, your former landlord can sue to recover it. If the business had been a corporation or LLC, and the business was the lessee (or tenant), not you, and you did not personally guaranty the rent, the landlord should only be able to sue the business. If the business is closed and has no assets, there is nothing he could recover, and you should not have personal exposure or liabilty.
On the other hand, if the business was a sole proprietorship or a partnership, and/or you either personally rented the space (were the tenant) or personally guaranteed the rent, then the landlord could sue you personally for the money.
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