Gaylord, MI is seeking to move a billboard to make way for a development project according to the Petoskey News.  The site’s former owners signed a billboard lease with Lamar which runs for an additional 9 years.  The property was sold to the city which wishes to develop the site.  Lamar is willing to move the boards if it can find an acceptable new location.  The Gaylord City Council will meet Monday July 11 to address the issue.

Insider’s take: This case points to the importance of recording your leases.  It’s also important to avoid having clauses which say that the lease becomes invalid on sale or the property.  If the Lamar billboard lease has been recorded the city must either buy out the Lamar lease or find an acceptable alternative site in order for Lamar to more.  In most states anything not shown on the public records is not binding on the buyer or lender even if  they have actual knowledge about something.

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