Default On Lease Agreement With Tenant
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FAQ
A ?default? is a failure to comply with a provision in the lease. ?Curing? or ?remedying? the default means correcting the failure or omission. A common example is a failure to pay the rent on time.
The main purpose of a default clause is to give a tenant incentive to hold up their end of the agreement and follow any requirements laid out in the lease.
An "event of default" is a defined term in loan and lease agreements. The following would constitute a default event in a typical credit agreement clause: non-payment of any amount of the loan (including interest) financial covenant breach.
For example, the original tenant might have put holes in the wall to make a new passageway or undertaken other major work on the property. At the end of the lease, the new tenant must fix those issues and return the property to the condition that it was in at the start of the lease.
Rent Default means when the tenant fails to pay rent in ance with a rental agreement and /or periodic tenancy agreement.
