Broker Tip – Assigning Commercial Real Estate Leases When Selling Your Practice

It is prudent when signing leases for commercial real estate to pay particular attention to the terms surrounding the assignment of the lease and your continued liability as a Personal Guarantor.

Most larger property management companies design their leases so that if you sell and assign the lease to the buyer of the practice, they may have to meet strict financial requirements to obtain the assignment and you, as the original tenant, could be required to remain on the lease as a guarantor for the remainder of the term and possibly for any successive renewals. Be careful and be aware of what you are agreeing to, particularly for longer-term commitments.

Tip by Dr. Richard Alker.

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