What happens if my landlord and I disagree about who actually owes back rent at the time of the sale?
A disputed rent arrears claim can become a real obstacle to closing, since most landlords are reluctant to consent to an assignment while they believe money is owed and unresolved — and an unresolved dispute like this is exactly the kind of thing a buyer's own due diligence should be catching before they agree to close. The disagreement itself is a contractual issue between you and the landlord under the lease, separate from your sale, but it can end up blocking the sale in practice if the landlord treats consent as leverage to get paid, or simply refuses to confirm the lease is in good standing while the dispute is live.
Resolving it usually means either paying the disputed amount under protest and reserving your right to challenge it later, negotiating a compromise figure with the landlord, or documenting the dispute clearly enough that your buyer and their lender are comfortable proceeding despite it.
Because an unresolved arrears dispute can stall your entire closing timeline, address it head-on with the landlord as early as possible rather than letting it surface for the first time during the assignment request. A Treadstone business lawyer can help resolve or document the dispute so it doesn't derail your sale.
Key takeaways
- A live rent arrears dispute can block landlord consent even where the lease itself is otherwise fine.
- The dispute is a separate contractual issue from the sale, but it can still delay or derail it.
- Options include paying under protest, negotiating a compromise, or clearly documenting the dispute.
- Resolve arrears disputes early — don't let them surface for the first time at the assignment stage.