Property Management

A Minnesota commercial tenant with a long-term lease wants to assign the lease to a new business owner who is purchasing their business. The lease requires landlord consent to assignment. The landlord should:

AAutomatically refuse all assignment requests
BEvaluate the proposed assignee's financial qualifications before deciding✓ Correct
CImmediately approve since the business is being sold
DRequire a new lease with the new owner instead of assignment

Explanation

When a commercial lease requires landlord consent for assignment, Minnesota courts have generally held that consent cannot be unreasonably withheld. The landlord can reasonably evaluate the proposed assignee's financial qualifications, business experience, and compatibility with the property.

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