Last year, a Missouri appellate court affirmed a lower court's holding that where a lease prohibited a tenant from assigning its interest in the lease without the landlord's consent, the tenant also could not assign an option to purchase the real property the tenant was leasing from the landlord, without the landlord's consent.
Is a Tenant's Option to Purchase Assignable?
Last year, a Missouri appellate court affirmed a lower court's holding that where a lease prohibited a tenant from assigning its interest in the lease without the landlord's consent, the tenant also could not assign an option to purchase the real property the tenant was leasing from the landlord, without the landlord's consent. That court held that a tenant's rights under an option to purchase were a covenant that ran with the land, and that the tenant could not assign those rights without the landlord's consent because the lease limited assignment of the lease generally. <i>Megargel Willbrand & Co., LLC v. Fampat Limited Partnership</i>, No. ED 86570, 2006WL956963 (Mo. Ct. App. Apr. 11, 2006)
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Aaron L. PawlitzThis premium content is locked for LawJournalNewsletters subscribers only
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