Read the consent and renewal terms
Find assignment, subletting, change of control, renewal, and guarantee provisions. Ask your attorney whether the actual transaction triggers landlord approval or a new agreement.
The remaining term and future rent affect a buyer’s costs and lender review. A friendly verbal understanding is not a replacement for enforceable lease terms.
Prepare a credible landlord package
Once the buyer is qualified and the timing is appropriate, determine what the landlord needs to evaluate it. Financial information, operating experience, and proposed use may matter.
Coordinate the contact plan with your advisors. Approaching the landlord too casually can reveal a confidential sale before the buyer and process are ready.
Address your guarantee explicitly
An assignment does not necessarily release a personal guarantee. Ask for a written explanation of what obligations remain with you after closing and whether a release can be negotiated.
Have counsel coordinate landlord documents with purchase conditions. Do not assume the sale contract alone controls the landlord’s rights.
Keep the lease in the value conversation
A business occupying property you own should still show realistic rent. Retaining the property and leasing it to the buyer creates a second negotiation about rent, term, maintenance, and security.
Begin early enough to identify a problem before buyer financing and closing dates depend on the premises. A reasonable price cannot cure an unusable occupancy arrangement.
Continue your sale preparation
Request a business sale introduction when you are ready to discuss your company.
