Saturday Reporter-Herald October 22, 2011 D1
Real Estate Matters
www.reporterherald.com • Saturday, October 22, 2011 • Reporter-Herald
Rent payment remains when landlord is bankrupt ILYCE GLINK TRIBUNE MEDIA SERVICES
THE
Telluride
by Midtown Homes
Q
uestion: I have a commercial lease for a portion of a strip building and just found out the building owner filed for bankruptcy last February. His loan holder is currently trying to sell the building. The building is in Milton, Ga. I couldn’t find anything in my lease about any of these following questions. Am I obligated to pay the owner his rent during his bankruptcy? I have been paying my rent so far because I just found out about this. Should I pay his bankruptcy servicer instead? Or do I get “free rent” during the foreclosure process, as I have been told? Will the building purchaser have to honor my lease? What happens to my security deposit? I just want to be informed of the law on these items, but am not asking for legal advice. Answer: Even though your landlord is in bankruptcy, you still have to make your monthly rent payments. But you’re smart to think about who should get that check. In most cases involving bankruptcy proceedings, you will get a notice from the court indicating whether a receiver or other person has been put in place to manage the property and telling you who gets your rent check. You never have a “free” rent period when you rent property. Your lease obligates you to pay rent on a monthly basis, and if you fail to pay rent, your landlord has the right to give you notice and evict you from your space. You should talk to a real estate attorney about the specifics of your situation and go over any documentation you have received from the bankruptcy court. The good news is that any purchaser of the building is usually happy to keep current tenants in place. A fully leased and occupied building is better than a building that is vacant. However, the bankruptcy court has wide latitude in deciding whether to keep leases in place, and it is possible that the bankruptcy court would terminate leases at the property to allow a different use or a sale of the building. If the building is sold with the leases in place, the subsequent buyer is generally required to honor the leases in place for their term. But if the bankruptcy results in the lender taking over the building, a tenant may be removed unless the parties have an agreement to honor the lease terms and the tenant is not in default.
www.thetelluridemodel.com
$7,500 in builder incentives through October 31st
features including double pane windows, more efficient central heating systems and higher density VISIT MIDTOWN HOMES insulation products. Take time to come visit the A few of the Telluride models at Midtown Homes sales office to Boise Village North in Loveland infind out more about the MidtownPAID ADVERTORIAL clude the following locations: Green programs and the benefits • 902 Delphinus, Loveland: Large of purchasing a Midtown Home. THE TELLURIDE single family lot with deck access Hours: 10 a.m.-6 p.m. daily Midtown Homes is setting the The Telluride model, a threeonto the lawn, front yard landscaping Address: 1899 E. 11th St., stage for some amazing values on bedroom, two-bathroom tri-level and a side fence, $195,350 L oveland select homes, including the tophome, features a den, two-car garage For more information: • 1832 Gemini Court, Loveland: selling Telluride, at Boise Village and 1,775 total square feet. It Call 970-456-4600, email Cul-de-sac location, full-yard landNorth. Prices range from $179,900 to includes a 400 square-foot unfinished info@newmidtownhomes.com scaping, $185,600 $195,350 on seven move-in ready basement. Tellurides by the end of the year. • 1827 E 11th St., Loveland: www.newmidtownhomes.com Telluride models have 42-inch Homes are available in cul-de-sac Full-yard landscaping, $184,300 kitchen cabinets, vaulted ceilings in locations, along with corner lots the kitchen and living room and a with large backyards or on smaller bonus fourth bedroom or study. The low-maintenance lots. home also has a large wood deck off Midtown is sweetening the pot the backside of the home, a spacious Bring in this voucher to receive with a builder special of $7,500 walk-in closet in the master bedroom through Oct. 31 for contracts that and the convenience of having the close by the end of the year. There is laundry room on the same floor as a $3,000 lender incentive toward the master bedroom. For more information, in builder and lender incentives closing costs with the use of Mike In addition, as with all Midtown contact Mike Turner, Morttoward home options, upgrades Turner, of Academy Mortgage homes, Telluride models are designed gage Loan Officer at Acadeand closing costs with the use Corporation in Loveland. Buyers can and built to provide energy efficiency, my Mortgage Corporation, at apply the rest of the credit against of Mike Turner with Academy lower energy bills and a healthy and 970-776-4378. Offer good the price of a move-in ready home Mortgage Corporation in Loveland. comfortable environment. Midtown through Oct. 31, 2011. or on options and upgrades. Home homes leverage smartly designed options and upgrades include items such as granite countertops, tile backsplashes, wood flooring, air conditioning, landscaping, tankless water heater, a stainless steel appliance upgrade, refrigerators, washer/dryers and more.
$7,500
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