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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 99702
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Im in Georgia ( USA) I have a lease agreement, and in this

Customer Question

I'm in Georgia ( USA) I have a lease agreement, and in this lease agreement, I have the 1st option to purchase this property I am renting if it comes up for sale. I just found out, that durring my lease term ( which is still current), the owner "Sold" for the sum of $10 this property to his wife. I was never made an offer, and was never informed of this transaction. Can I force him to sell this property to me for the same amount? If not, can I persue him for breach and or any damages. He is owner financing $60K worth of equipment that is in the building in which I rent, and I currently have $20K paid to him, if he IS in breach, do I have recourse to get my money back that I have already paid to him? He served me with eviction papers today and he knows I cannot come up with the remaining $40K, therefor, I would forfit the $20K I've already paid to him right?
Submitted: 6 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 6 years ago.
While you can argue this is sale, it is likely a simulated sale and not a true sale, since it was to his wife. As far as the equipment, that is based upon your contract with him and that is separate from the lease of the property. If he is in breach of the lease that does not necessarily mean that he is in breach of your equipment lease. If the equipment lease is tied into the building lease, then you have a problem and if he is in breach you would be able to sue him to recover the money for the equipment paid to date and to terminate that equipment deal and not owe him the remainder. If you lose that suit, then you would lose your $40K.

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Customer: replied 6 years ago.

Just to clerify:


My chances of arguing the "Sale" are slim, even through it was NOT "Gifted" and a monetary exchange was made? ( I also re-looked at the Warranty Deed and it shows that the owner "Sold" it back to himself & his wife )


Also, in the Building Lease Agreement, it is stated that the Owner Financing of the Equipment "will follow along side the lease term" ( I leased the building for 5 years, and owner financed the equipment for 5 years )


If he evicts me, do I have any recourse to try and get the $20K I've paid him towards this equipment back?

Expert:  Law Educator, Esq. replied 6 years ago.
Then you need to argue fraud here and that in doing this he broke the right to first refusal and that you should be entitled to the sale at that proce. However, I was saying that the court would likely say it is a simulated sale.

If it follows "along side" then it is separate from the lease and you would need to negotiate that if they are in breach of the agreement and would have to sue to get your $20K back, but this is not going to be an easy situation for you to deal with here because it will depend upon the interpretation of the sale/transfer between him and the wife by the court. At this point, you will need, especially if he is trying to evict you, to hire an attorney to review the lease and the sale and prepare your defense and your counterclaims.

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