I’m looking to buy a property that is used to sell sheds that also has a billboard on it owned by a big billboard company. The lease agreement ends in November. The landowner needs to cancel the agreement or it auto renews for five years at a low rate. If I purchased the property and canceled the contract with billboard company, is it possible to take procession of the billboard and rent the space on my own? Would I have to require the company to take it down then build my own? Thanks for any input.
The billboard company owns the billboard so if they no longer have a valid lease from the current owner they would probably do one of three things a) remove the billboard and place it in another location to lease the ad spaces, b) they will place it in their inventory until they have a suitable location for the sign, c) sell the sign if they feel they have no need for it any longer.
You can not take over the sign and start selling ad spaces if you purchase the land. The billboard company may sell the billboard to you but most likely they would remove it and you would need to go through the proper channels to have a new billboard put in place where you are referring to.
Thanks for the information! To properly negotiate the best lease, I need to research state, county and city law.
Just make sure to contact a good lawyer and get the best legal advice you can before making any important decisions. My good friend just dealt with buying a property with a billboard and he called a lawyer and at that point knew exactly what to do and how to do it.
Inition, here is an article explaining exactly what happens when you buy a property with a billboard, http://leaseadvisors.com/blog/What_Happens_When_You_Buy_Property_with_a_Billboard_on_It