[WSBARP] Commercial Lease - impact of non-judicial foreclosure on unrecorded lease w/o subrogation rights

[Roberto Castro]

Listmates


One other question regarding impact of non-judicial foreclosure on unrecorded lease.  Here are the underlying acts


  *   PC in second position (passive investor) is successful bidder in a nonjudical foreclosure
  *   Statute suggests unrecorded commercial lease does not survive foreclosure.
  *   PC was aware of tenant in building but did not bother reading the lease since PC did not know if he would win.
  *   Tenant claims lease survives and acting in threatening manner since tenant invested money to upgrade interior but did not negotiate a subrogation clause or record the lease.
  *   Lease is at half FMV in market place.
  *   Advised tenant new lease is coming and lease amounts paid would be deemed month-to-month until new lease executed (tenant unhappy)

Any case on point? Thoughts on this matter....

Thank you.





Roberto H. Castro
Attorney
Law Office of Roberto H. Castro, PLLC
P.O. Box 747
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Direct:  (509) 679-3668
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www.rcastrolaw.com


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