Warning of Default on Commercial Lease - Arizona 2025

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The document is a warning notice to tenants indicating that they are in default of their commercial lease agreement. It outlines the reasons for the default and provides a deadline for the tenants to remedy the situation. Failure to cure the default may result in lease termination, eviction, and legal action by the landlord. The warning is issued without any binding obligation on the landlord.
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A notice of default can result when a homeowner fails to pay as required under his mortgage or deed of trust. In a lease situation, a notice of default can be sent by either the landlord or tenant, claiming that one of them has violated a condition of the lease.
Defaulting on a lease means failing to fulfill your responsibilities as outlined in the agreement. This could involve missed rent payments or violating other terms, like subletting without permission. Defaulting on a lease often leads to legal consequences, including eviction.
Common Reasons Leases Get Terminated Often, unexpected circumstances might prompt a necessary change. A few reasons you might be considering ending your commercial lease agreement early include: Financial hardship. Relocation of your business.
If the issue is not resolved, a landlord may begin the process of forcible detainer to evict the tenant. Arizona law requires that: A hearing on forcible detainer must be held within 30 days of filing the eviction action. The entire process is fast-tracked and completed within 30 days.
A collaborative approach often yields the best results when exiting a commercial lease. Even without a formal termination clause, landlords may agree to an early release if market conditions favor re-leasing and you offer a fair financial settlement, assist in finding a replacement tenant, and provide ample notice.

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People also ask

Pursuant to A.R.S. 33-361(A), the landlord may re-take possession of the premises by locking out the defaulting tenant. The landlords right to possession and hence right to lock-out the tenant arises as soon as rent is in arrears for five days. A.R.S.
The landlord can also pursue damages against the tenant as compensation for financial losses which were a result of the tenants default. Damages may include unpaid rent, repair costs, and other expenses incurred because of the tenants actions. The tenant also has rights and defenses in the event of a default.
Yes, a tenant can give up their right to a lease by negotiating the surrender terms with the landlord. The terms must be agreed to by both parties, otherwise the surrender cannot take place. Often, landlords can be reluctant to agree to lease surrender, as theyll lose rental income, even if only for a short period.

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