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PRIVATE BUSINESS SALE PREPARATION

Prepare a Lease Assignment Before Selling

This Prepare a Lease Assignment Before Selling resource from Long Beach Business Brokers Ltd helps you prepare for your next sale conversation.

A buyer may love the business and still be unable to complete the purchase if the premises cannot transfer on acceptable terms.

Start the lease review while you prepare the financial records.

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A business owner and adviser discuss sale records in a sunlit office.

Read the agreement and the amendments

Collect the signed lease, renewals and any side letters. Identify the remaining term, rent changes, permitted use and conditions for assignment.

Ask a lawyer to review the actual wording. A change in company ownership can matter even when the tenant entity stays the same.

Understand the landlord’s approval process

Find out what financial information, guarantees or deposits the landlord expects from the buyer. Build that review into the deal timetable instead of treating it as a final signature.

If lender and landlord documents need coordinating, identify who owns the task. Approval delays can affect financing and the agreed closing date.

Ask what ends your personal exposure

An assignment may leave a seller’s personal guarantee in place. Discuss a written release with the landlord and legal adviser rather than assuming the sale removes the obligation.

If you own the property, prepare a commercial lease separately from the business sale. Buyers need an earnings picture that reflects the proposed occupancy cost.