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  • FIRST POST
    • maxlan
    • By maxlan 16th Oct 19, 4:36 PM
    • 15Posts
    • 1Thanks
    maxlan
    Commercial rental and bankrupt landlord?
    • #1
    • 16th Oct 19, 4:36 PM
    Commercial rental and bankrupt landlord? 16th Oct 19 at 4:36 PM
    Hi, this hasn't happened, but I'm concerned it could, and want to understand the risk exposure.

    As a small business, we rent some office space. There was a "service retainer" charge (basically a deposit).
    As this isn't a private rental the normal restrictions about holding it in escrow don't seem to apply. So that money is now the landlord's money.
    IF the landlord goes bankrupt, presumably we don't get it back? (other than as a normal creditor might be able to reclaim some tiny part of it)
    And we can't get into the building because landlord isn't paying the security staff to open the doors any more. (Until the receivers sort something out.)

    Am I roughly right??
Page 1
    • 00ec25
    • By 00ec25 17th Oct 19, 7:20 PM
    • 8,701 Posts
    • 8,622 Thanks
    00ec25
    • #2
    • 17th Oct 19, 7:20 PM
    • #2
    • 17th Oct 19, 7:20 PM
    yes you are right - it's called accepting a business risk
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