Are you currently leasing space for your office and hoping to sell your practice in the future? Do you know if your lease permits you to sell your practice or transfer the lease to a new owner? Not all leases have these provisions. It’s critical for a practice owner to understand the terms of his or her lease and to ensure it is set up properly to allow for the sale of the practice and corresponding lease transfer. If not done correctly, the property owner may have the ability to prevent the sale from happening or the leverage to gain proceeds from the sale in exchange for granting permission to sell.
The MDS Dental Practice Committee urges you to consult a legal advisor before signing a lease or—if you are already in a lease arrangement—review your lease and evaluate the assignment clause language. Consult an advisor if the proper language is not in place. Getting out ahead of potential obstacles will eliminate any problems down the road and make way for a smooth practice transition.