What happens to the personal property in a furnished commercial lease when property goes to foreclosure?

UPDATED: Dec 13, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Dec 13, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What happens to the personal property in a furnished commercial lease when property goes to foreclosure?

I signed a three year commercial lease that included the furnishings in the office when rented. The landlord went into default and the property was foreclosed upon prior to the expiration of the lease. What happens to the furnishings that were included in the commercial lease? I have the opportunity to stay in the property through the end of the original lease term.

Asked on December 13, 2011 under Real Estate Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Good question. If the commercial property goes into foreclosure and your have leased out the proeprty from the landlord, technically you are entitled to use the furnishings and the lease subject to approval of the new owner of the property so long as you continue to pay the rent to the new owner.

The former owner cannot take the furnishings away until the lease is at an end that you have at the commercial building. You need to be aware that if the trust deed or mortage is senior to your commercial lease, the foreclosure could wipe out the commercial lease where the new owner would not be obligated to allow you to remain as a tenant. I suggest that you consult further with a landlord tenant attorney about your situation.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption