Can the Lessee sell the Structure He built in the Lot Being Rented.

We are leasing a part of our lot.

The tenant built a structure in the lot being leased for business purposes. He had been leasing said lot for about 2 yrs now

He ask us if they could sell their "structure" to a third party and that third party will be the one to shoulder or continue the lease.

They want to put it into writing as an added condition to the renewal of contract that "they have the right to sell the structure"

Can this be considered a red flag or something?

It is to my understanding that the owner/lessor has the absolute right to either demolish or buy the structure? (cmiiw)

What is on your contract regarding improvements, please review? Have you read Art.1642 till 1688 of the Civil code?

Friendly_User wrote:What is on your contract regarding improvements, please review?

In our contract, upon termination, the tenant is given 30 days to remove their improvements like wood-based materials, G.I. roofings.
Concrete-based materials will be left as-is if it is too much of a trouble for the lessee to remove it.

Friendly_User wrote: Have you read Art.1642 till 1688 of the Civil code?

Just finished skimming over it.

To my basic-level of understanding, the owner have the right to either have the structure (built by lot lessee) demolished or buy it half a price?


How about the Lessee wanting to sell the "structure" to a supposedly incoming Lessee though? Having that new Lessee take over the lease?

Im worried that these may cause some complications should i decide to rescind the lease.

If your lessor has agreed to your contract , If our contract does not have unlawful, unfair condtions, then it is favored by the legal system and becomes the law between you and your tenant in the eyes of the court.

does the civil code provisions applies unless there is agreement between parties provided it is not contrary to laws morals and public policy .. per ART. 1306 ?

Do you have the option not to renew the contract?

Did in your contract states that you have to compensate for any tenant improvement when it is stated  that tenant should remove any improvements?

Does he has no authority to compel what is not in your contract?

Does a seller can sell what he does not have? Please look it up in "Sales" of Civil Code, If in the lease contract he still has 3 years left can , lessee sell the lease for 5 years?

If you find the answers then you will know what to do, consult a notary public for a review of your contract and your rights as lessor.