BRE DDR BR Whittwood CA LLC v Farmers & Merchants Bank (2017) 14 CA5th 992 (Commentary)
Real Property Law Reporter (Vol.40, p. 141 - 142, Nov. 2017)
3 Pages Posted: 8 Mar 2018
Date Written: November 2017
After a shopping center tenant (Tenant) defaulted on a secured loan, Lender took possession of the premises through foreclosure. Shortly thereafter, Lender transferred its interest to Third Party, who later stopped paying rent and surrendered the premises. Landlord sued Lender and Third Party to enforce the lease obligations, including payment of rent for the full term of the lease. The trial court entered judgment in favor of Landlord against Lender, reading the lease and the foreclosure documents to impose contractual obligations on Lender when it purchased the leasehold estate.
Keywords: Subordination, Leasehold Mortgages, BRE
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