Covert transfer

The transfer is the definitive assignment of the lease contract to a third party in exchange for a price; that is, the tenant "transfers" their position in the lease contract to a third party, and therefore ceases to be part of it. On the other hand, the new tenant subrogates into the contract and assumes all the rights and obligations that the previous tenant had.

On the other hand, there is an industrial lease when the following circumstances occur:

• The tenant retains possession of the premises, remaining as the holder of the contract.
• The third party is limited to operating the business, that is, renting it for a specified period in exchange for the payment of rent.

It should be noted that the industrial lease cannot be used to conceal a true transfer (i. e., an assignment of the lease contract). This is important because, if there has actually been a transfer, the legal obligation to notify the lessor must be fulfilled, who has the right to increase the rent or even —if agreed upon in the lease contract— to receive a percentage of the transfer.

Therefore, in the event that you operate a business in a leased premises and want a third party to continue with your activity, do not forget to make the formal notification (by burofax) to the lessor within one month from the date of the transfer or sublease. Otherwise, the lessor may terminate the lease contract.

 

Our professionals will advise and assist you in all legal matters if you wish to transfer your business.