Commerical lease & 1031 exchange

[dosumi]

What is the name of your state? CA

I lease a business location. We have 8 years left on our lease, and it can be transferred. We are in the process of sell the business and yesterday the landlord told the buyer that he is in the process of selling the property. As a way of getting out giving the buyer a longer lease. He has also been very difficult to deal with taking 4 to5 days to return phone calls.
Today we talked to the landlord and he told us he is doing a 1031 exchange.
In our lease we have a first right of refusal. We where never notified of this, and he told the buyer he has been going through this starting back in Feb.
Is a 1031 considered a sale? And if so when would he have to give us the option of our right of refusal?

We informed the landlord of our intent to sell 5 weeks ago, and the 1031 was never mentioned until yesterday. He had spoke to the buyer several times and also never mentioned this.
Can the landlord tell our buyer that he is selling the property without telling us first?
If the landlord doesn’t have a binding contract to sell, and he implies to our buyer he does, that is why he can’t change the lease. And our sale doesn’t go through due to this statement do we have any legal recourse.
If the landlord does a 1031, does that mean he has violated a lease term of first right of refusal.

 

[HomeGuru]

What is the name of your state? CA

I lease a business location. We have 8 years left on our lease, and it can be transferred. We are in the process of sell the business and yesterday the landlord told the buyer that he is in the process of selling the property. As a way of getting out giving the buyer a longer lease. He has also been very difficult to deal with taking 4 to5 days to return phone calls.
Today we talked to the landlord and he told us he is doing a 1031 exchange.
In our lease we have a first right of refusal. We where never notified of this, and he told the buyer he has been going through this starting back in Feb.
Is a 1031 considered a sale? And if so when would he have to give us the option of our right of refusal?

We informed the landlord of our intent to sell 5 weeks ago, and the 1031 was never mentioned until yesterday. He had spoke to the buyer several times and also never mentioned this.
Can the landlord tell our buyer that he is selling the property without telling us first?
If the landlord doesn’t have a binding contract to sell, and he implies to our buyer he does, that is why he can’t change the lease. And our sale doesn’t go through due to this statement do we have any legal recourse.
If the landlord does a 1031, does that mean he has violated a lease term of first right of refusal.

**A: have your business or real estate attorney help you. Your situation is too complicated and has too many issues to respond to on this forum.

 

[dosumi]

1031 Exchange

Maybe I asked too much.

The basic question I would like to know.
Is a 1031 exchange considered a sale? I know for tax purposes it isn't.

To me if ownership of a property changes hands it is a sale.
Any thoughts.

I called our attorney, will be out of town until next week, is taking a long weekend.
That's why I posted the question.

The buyer and I got blind-sided, we thought the new lease was going to be signed yesterday and there was no problem. And we where ready to close escrow next week.

I’m trying to figure out if this guy (landlord) is playing games.

He made a statement to the buyer that he can not add any years to the lease because he is selling. As I understand it the only way he would be prohibited from changing this lease on this property would be if he has some type of signed binding contract to sell the property.

Thanks

 

[HomeGuru]

Re: 1031 Exchange

Maybe I asked too much.

The basic question I would like to know.
Is a 1031 exchange considered a sale? I know for tax purposes it isn't.

To me if ownership of a property changes hands it is a sale.
Any thoughts.

I called our attorney, will be out of town until next week, is taking a long weekend.
That's why I posted the question.

The buyer and I got blind-sided, we thought the new lease was going to be signed yesterday and there was no problem. And we where ready to close escrow next week.

I’m trying to figure out if this guy (landlord) is playing games.

He made a statement to the buyer that he can not add any years to the lease because he is selling. As I understand it the only way he would be prohibited from changing this lease on this property would be if he has some type of signed binding contract to sell the property.

Thanks

**A: A 1031 is considered a bonafide sales transaction.