Can I Rely On My Lease?

Why Lease Language Is Often Not Enough

Commercial leases frequently include provisions stating that:

• Abandoned property becomes the landlord’s property
• The landlord may immediately dispose of items left behind
• The tenant waives any future claim to the property

These clauses may sound comprehensive, but in many jurisdictions they do not eliminate statutory obligations or protect against later challenges.

Relying solely on lease language can expose owners and managers to claims even after a tenant has vacated.

Statutes Still Apply

Abandoned property laws are enacted to protect due process and ownership rights. In states with defined abandoned property statutes, those requirements often apply regardless of lease language.

Common statutory obligations may include:

• Serving specific notices
• Honoring mandatory holding periods
• Valuing property before disposition
• Conducting public sales when thresholds are exceeded

Lease provisions cannot always waive these requirements.

Commercial Risk Is Often Higher

Commercial abandoned property cases frequently involve:

• Higher-value assets
• Equipment, fixtures, or specialized installations
• Potential secured creditors
• Greater scrutiny if decisions are challenged

These factors increase the importance of following a defensible, well-documented process rather than relying on contractual language alone.

How Leases Do Fit Into The Analysis

This does not mean lease provisions are irrelevant.

Lease language can:

• Inform how abandonment is defined
• Clarify access rights
• Allocate costs
• Guide coordination with tenants

However, lease provisions should be evaluated alongside statutory requirements, not treated as a substitute for them.

A Safer Approach

A more defensible approach to abandoned property involves:

• Confirming whether abandoned property statutes apply
• Following the required notice and holding process
• Documenting valuation and disposition decisions
• Coordinating with legal counsel where appropriate

This approach helps reduce exposure and avoid disputes after the fact.

When To Involve MEGA Auctions

Questions about lease reliance often arise:

• Immediately after eviction or surrender
• When property remains in a commercial space
• Before assets are moved, sold, or discarded
• When value or ownership may be questioned

Early involvement helps clarify options and prevent missteps that are difficult to undo.

Let’s Talk

If you’re unsure whether lease language alone is sufficient in your situation, we’re happy to help you evaluate next steps.