Can a landlord recapture the space instead of consenting once they hear I'm selling?
Only if your lease gives the landlord a recapture right, and only in the way that clause actually describes triggering it — merely hearing informally that you're thinking of selling is generally not, by itself, enough to activate a formal recapture right, which is usually tied to an actual request for consent to a specific proposed assignment. This distinction matters: a landlord who gets wind of a potential sale before you've made any formal request has no more power at that stage than they had before, unless your lease says otherwise.
That said, once you do make a formal assignment request, a recapture clause (if your lease has one) can let the landlord take back the space instead of approving your buyer, without needing to show the buyer was unsuitable. Because of this, some tenants prefer to keep sale discussions confidential and have their lease reviewed for a recapture clause well before formally approaching the landlord.
Knowing whether this risk exists in your lease should shape how and when you approach your landlord. A Treadstone business lawyer can review the clause and advise on timing before you tip your hand.
Key takeaways
- A recapture right generally requires an actual clause in your lease, not just landlord awareness of a sale.
- Informal knowledge that you're considering a sale doesn't, by itself, trigger recapture.
- A formal assignment request is usually what actually activates a recapture clause, if one exists.
- Review your lease for recapture rights before approaching your landlord about a potential sale.