Person smiling

We won’t release the bond, because ... aren’t you still the tenant?

Anthony*, a property manager, was surprised to hear that the tenant was claiming back the bond on a commercial space. Anthony was pretty sure the shop was still in business and doing well.

After trying and failing to communicate with the person listed on the lease, Anthony froze the bond payment and quickly applied for mediation. His best guess was that the tenant had sold the business without properly transferring the lease, perhaps assuming that the sale did not have to involve the landlord.

During mediation, it emerged that the tenant was simply unaware of what was required to transfer the assets of a business effectively and securely – as was the purchaser of the business.

After working through the problem in the non- adversarial environment of mediation, all parties were happy to make the sale work. The bond payment was resolved, as was a separate deal with the purchaser to ensure they could continue to operate in the space under a fixed-term lease.

* All names have been changed.