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CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10244
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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We own a furniture manufacturing company. We had several

Customer Question

We own a furniture manufacturing company. We had several showrooms before the recession and was forced to close some during that time. We had a lease in Las Vegas with a $15,000 promissory note. But we left well before the lease was up. Do we owe the entire balance of the lease or just the promissory note? There is a collection agency trying to collect on the actual lease , can they do that ? This is from 2009.
JA: Because laws vary from place to place, can you tell me what state this is in?
Customer: Nevada
JA: Have you talked to a lawyer yet?
Customer: No
JA: Anything else you think the lawyer should know?
Customer: No
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

Thank you for using our forum. My name is ***** ***** I hope to assist you today.

Please keep in mind, commercial contracts (including leases) can be fairly complex, so general information such as what we can offer here should always be cross-checked with a local attorney that can actually review your lease contract and provide you with a formal legal opinion on the matter.

In general, if a tenant breaks a lease early, the tenant is responsible for the entire lease term. The landlord has a duty to mitigate damages by trying to find another tenant to take over the lease, but the old tenant must pay the expenses associated with finding the new tenant.

So, you would be responsible for rent until: (1) the end of the lease term; or (2) the landlord finds a new tenant to take over the lease, whichever comes first.

The promissory note is simply another mechanism for the landlord to secure payment, and provides the landlord with a very powerful tool in collections - it does not limit their recovery.