Breach of commercial lease

What is a commercial lease? Accepting rent after discovering a tenant’s breach of the terms of the commercial lease can amount to a waiver if the breach is not capable of remedy such as failing to repair the property by a set date. However, landlords are able to accept rent without risking a waiver in instances where the tenant is able to remedy their breach , for example failing to maintain the property. Breach of Commercial Lease.

Blackstone act for Landlords when their tenants have breached a commercial lease agreement. There are several possible remedies to a breach of lease. The most common breach of covenant for a commercial lease is the duty to pay rent. If the tenant fails to pay rent when it falls lawfully due then the landlord will be entitled to terminate the lease.

Fortunately, it is also one of the easier breaches to deal with. This post will concentrate on this breach of a commercial lease – the tenant’s failure to make rental payments – but a. Where the lease allows for a landlord to exercise a right of re-entry following a breach of the lease , and a landlord serves a notice in accordance with the requirements of section and a tenant has failed within a reasonable time to remedy the breach of covenant, it will then be lawful for the landlord to re-enter and take possession of the premises. If the lease is silent on the length of the notice and cure period with regard to rent, the Commercial Tenancies Act provides the landlord may terminate the lease once rent has been outstanding for more than days, without providing the tenant with prior notice or an opportunity to cure the default ( Commercial Tenancies Act, s.18(1)).

Under a typical commercial lease , the landlord has fewer obligations than the tenant but they are significant: maintaining and insuring the building, providing services and not interfering with the tenant’s right to occupy. Any breach could affect a commercial tenant’s business and cause problems for staff, customers and suppliers. This can be resolved through mediation or even via a lawsuit, if one or both parties are not amenable to working through the issue or cannot do so for some reason. Further, forfeiture applies to both commercial and. Forfeiture is a complex area and we will only be touching on the basics in this article.

However, caution must be taken before doing so as generally a lease cannot be forfeited unless there is non- payment of rent. It is important to study the terms of the lease and to obtain legal advice as to what is. An every day, parties breach the terms of the commercial lease agreement. The underlying question when a party is in breach is whether the breach is material pursuant to Arizona law. The analysis herein outlines what factors parties should analyze in making a determination whether a material breach has occurred.

If it has, the injured party has extensive remedies under Arizona law, including. It may also be that a tenant is not complying with their repairing obligations, or is permitting an unlawful use of the premises. A commercial property lease usually continues until its end date unless you include a clause to end it earlier. This is an official date in the lease , agreed by the landlord and. A commercial lease is a legally binding contract made between a landlord and a business tenant.

The lease gives a tenant the right to use certain property for a business or commercial activity for a period of time in exchange for money paid to the landlord. Additionally, the lease outlines the rights and responsibilities of both the landlord. There is not an automatic right to apply for an order authorising forfeiture, as the tenant must be given an opportunity to remedy the breach. The majority of commercial leases in Scotland incorporate provisions entitling the Landlord to terminate a Lease in the case of Tenant breach. Irritancy clauses, as they are known, entitle a Landlord to take steps to regain possession and reclaim rent and other monetary arrears including interest within a relatively short period of time.

If the breach is remediable (i.e. capable of being remedied) the Section 1Notice must require the tenant to remedy the. Most leases contain lists of obligations, known as covenants. A breach of one or more of these obligations is known as a breach of covenant.