If I buy part of a restaurant, am I required to be added to the lease?

Earlier this year, I invested in a restaurant in DC and acquired 50% of the corporation. When I first met the landlords, they were adamant that I don't actually own the business until I am on the lease - which seemed like complete BS to me. They then requested I fill out the personal guarantor application to be approved and then added formally to the lease. I filled out the forms, they approved it...but they they supplied me with the lease addendum which makes it official. I have not signed this yet as I really think I have nothing to gain by guaranteeing the lease on a business that may or may not be able to stay open. I see it as 100% for their gain only. Could there possibly be something that would require me to do this? Should I just tell them no?If I buy part of a restaurant, am I required to be added to the lease?
It would depend on your landlord, but I certainly would require it.

In fact, I have required it in the past...when a business takes on a new partner.

And yes it is total for their gain, but if your partner died without your name of the lease the lease would be void and you could be forced to move. The long and the short of it you would want your name on the lease also. I protects you too.
Contact a Real Estate Attorney and find out what the laws are in your area to be on the safe side and do NOT sign anything until you have spoken to the attorney.If I buy part of a restaurant, am I required to be added to the lease?
In addition to what Glenn stated, I have often seen provisions within a Lease that expressly forbid a sale of ownership/assignment without the approval of the Landlord (in a restaurant situation this is close to 100%). A lot of times, the Landlord has paid out tens of thousands, if not north of $100,000, to pay leasing agents commissions and to build out the spaces. The guaranty specifically protects the landlord's investment, thus such a prohibition of transfership of ownership is to protect their right to collect. By not following such a procedure, the tenant is in default of the lease agreement.



I think you need to know what the lease says about assignment or transfer of ownership. If that provision is missing, you might have a negotiable point. My employer would be quick to protect his position, and would employ legal right away to make sure the contract (lease) was enforced.

chevys

jayco