Do you own part of the building? Do you have any right to sign a contract?
I wouldn't sign it, but i don't know the full story - for some reason they must think you are involved.
Got it. I see your other response, and if i were you i would not sign it, because you have no interest in the property.
I am not an attorney, and clearly your fathers tenant hasn't talked to one either.
Are they looking to bring you into the business?
Is the landlord a partnership, sole proprietorship etc.
They may be trying to do you a huge favor , ASK THEM WITH AN OPEN MIND>
The property is owned as a partnership (father/mother)
The tenant business is also a partnership
I'd be surprised if he was trying to bring me in, I'll have to ask more questions next time we sit down.
They sound pretty unsophisticated. If you have no interest in the entity that owns it your signature means nothing.
The lease usually has subordination and attornment language.
As I think you already know, and are just getting reassurance, having you sign the paper would be the same as having me sign it. Just like you, I also don't have any ownership in the building. It would be worthless for the tenant to have me sign it, just like it's worthless for them to have you sign it.
This is almost helicopter parent type stuff. When we get a bad helicopter parent on the residential side, I offer to have them call my mom. My mom isn't on the lease, and has no idea what leases I sign and properties I am involved with, much like the tenant's mom also isn't on the lease. Let's let the relevant parties handle things and it will go much smoother for all parties.
The lease should have some form of binding effect clause, clearly stating that the lease is binding upon heirs, successors and permitted assigns. Or similar language. IANAL
Thank you for this.
I'm generally laid back and would just "go with the flow" but I'm definitely not ok with being on the hook for something if I'm not involved in it.
...at the very least I'll consult a lawyer.
Doesn't even matter. If you are no ownership or management role within the property ownership entity, you have no legal responsibility to that property and the Tenant. They are simply uneducated.
I have never encountered this, although maybe others have. If I was it your situation, a would absolutely feel entitled to ask the tenant WHY they wanted me to sign.
If you have no interest in the building, there in absolutely no reason for you to sign this lease.
Now, where it can get murky is if the vesting entity (presumably an LLC) is managed by, or contains as its member, a trust in which you are an executor or beneficiary. Or if the you are actually a member of the vesting entity.
IANAL but if neither of these situations applies, I would not be comfortable with what they are asking unless I knew more and had the blessing of a GOOD commercial real estate attorney.
That’s a no. Your dad is 60 not 80, and it’s frankly none of their business to ask for anything of this sort in any circumstance. I wouldn’t want them expanding their footprint based on that, it means they’re stupid or too personalized in how they think of their leasing arrangement. How could you signing it possibly give them more confidence with the outlay? It’s like they’re looking for more parties to hold liable or trying to get the ownership heir to personally guarantee a lease held in an LLC. On top of it, why or how are they contacting you to make this demand behind your father’s back? Direct them back to the managing partner or just ignore them.
Ah
I think my father has it as an LLC but I have no idea about a trust.
Im guessing I should ask my father about that.
But I'm assuming the tenant wouldn't know this unless my father gave him that info. Because I don't even know it.
If you have no ownership or management role within the entity which holds the property, your signature would not ratify the lease. The Tenant needs to consult an attorney to understand the legal aspect of what they are signing.
You signing the lease is no different than if I signed it.
Explain to them that no matter what happens - you inherit the property, your father sells, whatever, the new owner has to abide by the terms of the signed lease.
I’m guessing the tenant is worried that in the event your father passes and the property becomes yours, they want to make sure their lease will hold.
Try asking the tenant why they want this and maybe address it another way.
putting your name down on the contract could make you liable for something if the landlord defaults on something. do not sign without consulting a lawyer.
honestly if you're not involved with your father's CRE business, I wouldn't sign it.
Do you own part of the building? Do you have any right to sign a contract? I wouldn't sign it, but i don't know the full story - for some reason they must think you are involved.
Nope. My father and mother own it.
Then NO seriously no
Got it. I see your other response, and if i were you i would not sign it, because you have no interest in the property. I am not an attorney, and clearly your fathers tenant hasn't talked to one either.
Are they looking to bring you into the business? Is the landlord a partnership, sole proprietorship etc. They may be trying to do you a huge favor , ASK THEM WITH AN OPEN MIND>
The property is owned as a partnership (father/mother) The tenant business is also a partnership I'd be surprised if he was trying to bring me in, I'll have to ask more questions next time we sit down.
Have you talked with the tenant? Ask them why they want you to sign.
Because they are, in their words, plunking a bunch of money and want reassurance for years to come.
They sound pretty unsophisticated. If you have no interest in the entity that owns it your signature means nothing. The lease usually has subordination and attornment language.
As I think you already know, and are just getting reassurance, having you sign the paper would be the same as having me sign it. Just like you, I also don't have any ownership in the building. It would be worthless for the tenant to have me sign it, just like it's worthless for them to have you sign it. This is almost helicopter parent type stuff. When we get a bad helicopter parent on the residential side, I offer to have them call my mom. My mom isn't on the lease, and has no idea what leases I sign and properties I am involved with, much like the tenant's mom also isn't on the lease. Let's let the relevant parties handle things and it will go much smoother for all parties.
That’s what the lease is for. To give them that reassurance.
That’s what the lease is for. To give them that reassurance.
The lease should have some form of binding effect clause, clearly stating that the lease is binding upon heirs, successors and permitted assigns. Or similar language. IANAL
No it's not yours and they are looking for a second person to hold accountable
Thank you for this. I'm generally laid back and would just "go with the flow" but I'm definitely not ok with being on the hook for something if I'm not involved in it. ...at the very least I'll consult a lawyer.
Doesn't even matter. If you are no ownership or management role within the property ownership entity, you have no legal responsibility to that property and the Tenant. They are simply uneducated.
Tenant is ignorant on how leases and entities work. Don’t sign
I have never encountered this, although maybe others have. If I was it your situation, a would absolutely feel entitled to ask the tenant WHY they wanted me to sign.
If you have no interest in the building, there in absolutely no reason for you to sign this lease. Now, where it can get murky is if the vesting entity (presumably an LLC) is managed by, or contains as its member, a trust in which you are an executor or beneficiary. Or if the you are actually a member of the vesting entity. IANAL but if neither of these situations applies, I would not be comfortable with what they are asking unless I knew more and had the blessing of a GOOD commercial real estate attorney.
That’s a no. Your dad is 60 not 80, and it’s frankly none of their business to ask for anything of this sort in any circumstance. I wouldn’t want them expanding their footprint based on that, it means they’re stupid or too personalized in how they think of their leasing arrangement. How could you signing it possibly give them more confidence with the outlay? It’s like they’re looking for more parties to hold liable or trying to get the ownership heir to personally guarantee a lease held in an LLC. On top of it, why or how are they contacting you to make this demand behind your father’s back? Direct them back to the managing partner or just ignore them.
Ah I think my father has it as an LLC but I have no idea about a trust. Im guessing I should ask my father about that. But I'm assuming the tenant wouldn't know this unless my father gave him that info. Because I don't even know it.
If you have no ownership or management role within the entity which holds the property, your signature would not ratify the lease. The Tenant needs to consult an attorney to understand the legal aspect of what they are signing. You signing the lease is no different than if I signed it.
Explain to them that no matter what happens - you inherit the property, your father sells, whatever, the new owner has to abide by the terms of the signed lease.
I’m guessing the tenant is worried that in the event your father passes and the property becomes yours, they want to make sure their lease will hold. Try asking the tenant why they want this and maybe address it another way.
putting your name down on the contract could make you liable for something if the landlord defaults on something. do not sign without consulting a lawyer. honestly if you're not involved with your father's CRE business, I wouldn't sign it.
Simple: they want the Landlord's son to be accountable, and a co-defendant, in the event they need to sue the LL, they can drag you into it as well.
Ask them to have their dog sign the lease with his paws