{"id":3746,"date":"2021-08-28T03:18:55","date_gmt":"2021-08-28T03:18:55","guid":{"rendered":""},"modified":"2024-03-26T17:09:07","modified_gmt":"2024-03-26T17:09:07","slug":"the-often-overlooked-importance-of-leases","status":"publish","type":"post","link":"https:\/\/www.sunbeltcanada.com\/atlantic\/the-often-overlooked-importance-of-leases\/","title":{"rendered":"The Often-Overlooked Importance of Leases"},"content":{"rendered":"<div><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"300\" src=\"https:\/\/deal-studio.com\/wp-content\/uploads\/2021\/08\/bigstock-Business-Document-Contract-Rev-428949566.jpg\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"\" style=\"display: block; margin-bottom: 5px; clear:both;max-width: 100%;\" link_thumbnail=\"\" srcset=\"https:\/\/5ue8d2wbsep3sc8fn2ah4r0a-wpengine.netdna-ssl.com\/wp-content\/uploads\/2021\/08\/bigstock-Business-Document-Contract-Rev-428949566.jpg 900w, https:\/\/5ue8d2wbsep3sc8fn2ah4r0a-wpengine.netdna-ssl.com\/wp-content\/uploads\/2021\/08\/bigstock-Business-Document-Contract-Rev-428949566-300x100.jpg 300w, https:\/\/5ue8d2wbsep3sc8fn2ah4r0a-wpengine.netdna-ssl.com\/wp-content\/uploads\/2021\/08\/bigstock-Business-Document-Contract-Rev-428949566-768x256.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\"><\/p>\n<p><span style=\"font-weight: 400;\">When buying or selling a business, it is critically important that you evaluate the lease. It is a strange phenomenon that otherwise savvy business people will treat leases as a secondary concern. However, problematic terms in a lease can literally force you to pack up a business and move. This would not only be a jarring experience, but a very costly one as well.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finding a good location is of paramount importance to both the profile and profitability of your business. You may feel that there are more important issues when buying or selling a business. But by the end of this article, you\u2019ll see the wisdom in placing a lease near the top of your \u201cto evaluate\u201d list.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are three different kinds and types of leases: a new lease, an assignment lease and the sublease. All three of these options are most definitely different from one another and can potentially impact your business in different ways.<\/span><\/p>\n<p><b>The New Lease<\/b><\/p>\n<p><span style=\"font-weight: 400;\">A new lease, as the name indicates, is the result of a lease that has expired. That means that the buyer must work with the landlord to establish a new lease. Buying a business only to discover that you don\u2019t have a lease and the landlord isn\u2019t interested in keeping your business at its current location is most definitely a shock that no business owners want to encounter. Buyers should be one-hundred percent certain that they have a lease in place before they buy a business.<\/span><\/p>\n<p><b>Assignment of Lease\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The second type of lease is the assignment of lease; this form of lease is quite common. It involves the buyer of a business being granted the use of the location where the business is currently located and operating. Through the assignment of the lease, the seller is able to assign the buyer the rights associated with the lease. Of course, it is important to keep in mind that the seller is not acting as the landlord, but instead, simply has the ability to assign the lease.\u00a0<\/span><\/p>\n<p><b>The Sublease\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The third option for lease is the sublease. The sublease is basically a lease within a lease, and it comes with some important distinctions that must be understood. A sublease generally requires the permission of the landlord and that permission should not be viewed as a \u201cforegone conclusion\u201d or \u201cautomatic.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/span><span style=\"font-weight: 400;\">The bottom line is that no new business owner wants to discover that their new business doesn\u2019t have a home. There are an array of very important issues to work out when buying a business, and it is critically important that buyers never overlook what kind of lease is involved. A savvy seller will highlight what kind of lease they have, especially if the terms are favorable. But buyers should always be proactive and ask questions about the status of the lease and make certain that lease terms are clearly defined.<\/span><\/p>\n<p><a href=\"https:\/\/deal-studio.com\/the-often-overlooked-importance-of-leases\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Copyright: Business Brokerage Press, Inc.<\/span><\/a><\/p>\n<p><a href=\"https:\/\/www.bigstockphoto.com\/image-428949566\/stock-photo-business-document-contract-review-lawyer-in-suit\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">AndreyPopov\/BigStock.com<\/span><\/a><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/deal-studio.com\/the-often-overlooked-importance-of-leases\/\">The Often-Overlooked Importance of Leases<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/deal-studio.com\/\">Deal Studio &#8211; Automate, accelerate and elevate your deal making<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When buying or selling a business, it is critically important that you evaluate the lease. It is a strange phenomenon that otherwise savvy business people will treat leases as a secondary concern. However, problematic terms in a lease can literally force you to pack up a business and move. This would not only be a jarring experience, but a very costly one as well.\u00a0 Finding a good location is of paramount importance to both the profile and profitability of your business. You may feel that there are more important issues when buying or selling a business. But by the end\u2026<\/p>\n","protected":false},"author":105,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3746","post","type-post","status-publish","format-standard","hentry","category-buyer-articles"],"blocksy_meta":"","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Often-Overlooked Importance of Leases - Sunbelt Canada Atlantic<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Often-Overlooked Importance of Leases - Sunbelt Canada Atlantic\" \/>\n<meta property=\"og:description\" content=\"When buying or selling a business, it is critically important that you evaluate the lease. It is a strange phenomenon that otherwise savvy business people will treat leases as a secondary concern. However, problematic terms in a lease can literally force you to pack up a business and move. This would not only be a jarring experience, but a very costly one as well.\u00a0 Finding a good location is of paramount importance to both the profile and profitability of your business. You may feel that there are more important issues when buying or selling a business. But by the end\u2026\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sunbeltcanada.com\/atlantic\/the-often-overlooked-importance-of-leases\/\" \/>\n<meta property=\"og:site_name\" content=\"Sunbelt Canada Atlantic\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61560882733395\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-28T03:18:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-26T17:09:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/deal-studio.com\/wp-content\/uploads\/2021\/08\/bigstock-Business-Document-Contract-Rev-428949566.jpg\" \/>\n<meta name=\"author\" content=\"Debbi Donovan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@sunbeltcanada\" \/>\n<meta name=\"twitter:site\" content=\"@sunbeltcanada\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Debbi Donovan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.sunbeltcanada.com\/atlantic\/the-often-overlooked-importance-of-leases\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.sunbeltcanada.com\/atlantic\/the-often-overlooked-importance-of-leases\/\"},\"author\":{\"name\":\"Debbi Donovan\",\"@id\":\"https:\/\/www.sunbeltcanada.com\/atlantic\/#\/schema\/person\/abf21a12da887663d24f13efe05797a1\"},\"headline\":\"The Often-Overlooked Importance of Leases\",\"datePublished\":\"2021-08-28T03:18:55+00:00\",\"dateModified\":\"2024-03-26T17:09:07+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.sunbeltcanada.com\/atlantic\/the-often-overlooked-importance-of-leases\/\"},\"wordCount\":517,\"publisher\":{\"@id\":\"https:\/\/www.sunbeltcanada.com\/atlantic\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.sunbeltcanada.com\/atlantic\/the-often-overlooked-importance-of-leases\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/deal-studio.com\/wp-content\/uploads\/2021\/08\/bigstock-Business-Document-Contract-Rev-428949566.jpg\",\"articleSection\":[\"Buyer Articles\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.sunbeltcanada.com\/atlantic\/the-often-overlooked-importance-of-leases\/\",\"url\":\"https:\/\/www.sunbeltcanada.com\/atlantic\/the-often-overlooked-importance-of-leases\/\",\"name\":\"The Often-Overlooked Importance of Leases - 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