Contract
We sold a business contract for deed. The new owner could
not pay her rent for the leased space nor continue making payments to us on her contract. She shut the business down and the owners of the mall she was in will not release the
equipment to us because she owes back rent. Since she still
owed us alot of money for the equipement and because the lease at the mall was with her and not us, technically we still own the equipment and they need to find another way
to collect back rent right?
since we paid for it and not her.
Re: Contract
Unfortunately, no. The landlord has the right to ‘distrain’ [means hold] the equipment until the rent is paid. Only if you filed a financing statement under the UCC with the Secretary of State and served a copy on the mall could the matter come out otherwise. The landlord may “hold for ransom” the lessee’s interest in equipment on the leased premises until all rent is paid.
Charles Aspinwall
Charles S. Aspinwall, J.D., LLC
PO Bx 984
Los Lunas, NM 87031-0984