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Default is an omission or failure by either Party to meet a provision of the lease. If the default is not cured (remedied) by the defaulting Party, actions may be taken by the other Party, including (but not limited to) terminating the lease.
What is the default clause in a lease?
Commercial leases require an effective default clause that allows the landlord to force a tenant to comply with all lease obligations. The default clause commonly provides the procedure for obtaining an eviction or the threat of an eviction for a commercial tenants violation of the lease.
What is the most common form of landlord default?
If a landlord does not follow these requirements, the landlord runs the risk of wrongfully interrupting their tenants business, which can have drastic unintended consequences. Non-payment of rent, which is the most common form of default under a lease, usually indicates the tenants business is struggling financially.
What does default by resident mean?
DEFAULT BY RESIDENT . Any breach or violation of any provision of this contract by Resident or any untrue or misleading information in Residents application shall give the Owner or his agents the right to terminate this contract, evict the Resident and to take possession of the residence.
What is an example of a default clause?
The occurrence of any of the following shall be a Default: (a) Tenant fails to pay any Monthly Rental Installment or Additional Rent within ten (10) days after the same is due, or Tenant fails to pay any other amounts due Landlord from Tenant within thirty (30) days after written notice thereof from Landlord to
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A break clause gives you the right to take possession of the property back after a set period of time. This can be useful in various situations. For example, if you wish to move back into it yourself, or your relationship with the tenants has broken down and it is in your best interest to reclaim the property.
What does tenant will be in default mean?
The tenant will be in default of the lease for failure to pay rent on time or to perform its other contractual obligations.
What is the default clause on a residential lease?
The default clause should outline how the process will work. Most clauses dont consider tenants in default until at least five days after the rent was due. Your state and city may also have local tenant laws that dictate when a renter can be considered in default.
Related links
Guides: Landlord/Tenant Law: Leases - Texas State Law Library
A lease is a contract between a landlord and a tenant. As with any contract, both parties have the right to negotiate the terms before entering into it.
Default and Remedies. If Lessee does not pay Lessor as agreed or fails to perform any other term of this Lease/Rental Agreement, Lessee will be in default.
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