Default Remedy Clause
What this document covers
The Default Remedy Clause is a legal form that outlines the consequences of a tenant's default in an office lease. It specifies the owner's rights to collect the difference between the rent owed and the rent received from re-letting the premises. This clause is important for landlords to protect their interests in case of non-payment, differentiating it from other lease agreements that may not include such remedies for default situations.
Key parts of this document
- Definition of tenant default and subsequent obligations.
- Provisions for re-letting the premises and potential concessions on rent.
- Specification of liquidated damages for the difference in rent collected.
- Payment schedule for liquidated damages by the tenant.
- Rights of the owner regarding future collections of deficiencies.
When this form is needed
This form is useful when a tenant fails to make rent payments as agreed in the lease. It allows the landlord to outline their rights to reclaim lost rent and manage the re-letting of the property effectively. It is commonly used in commercial real estate dealings where non-payment could lead to significant financial loss for the landlord.
Who should use this form
- Landlords or property owners seeking to protect their financial interests in a lease agreement.
- Real estate agents representing landlords in commercial lease situations.
- Attorneys who assist clients in drafting or reviewing lease agreements.
Instructions for completing this form
- Identify the parties involved, including the tenant and landlord.
- Specify the rental property address and relevant lease dates.
- State the specific default events that may trigger this clause.
- Detail the calculation method for liquidated damages.
- Include signatures from both parties to finalize the agreement.
Does this document require notarization?
Notarization is not commonly needed for this form. However, certain documents or local rules may make it necessary. Our notarization service, powered by Notarize, allows you to finalize it securely online anytime, day or night.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Failing to clearly define what constitutes a default by the tenant.
- Not including an adequate method for calculating liquidated damages.
- Omitting signature and date lines, which can invalidate the agreement.
Benefits of using this form online
- Allows for easy customization and editing to fit specific lease terms.
- Provides access to professionally drafted legal language.
- Ensures that all necessary clauses are included for enforceability.
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FAQ
Your lease agreement will state what constitutes a default of the lease as well as if there is any grace period in making lease payments. Not making a contractually required monthly payment will normally be a breach of the lease and the lessor can then repossess the vehicle from you.
The default provision sets forth the conditions under which one of the parties will not have fulfilled its obligations under the contract. For example, failing to deliver goods or services on time, or failing to pay on time would trigger a default.
Tenant default occurs when a Tenant breaches one of the tenant's covenants in its lease. Tenant default can arise in a number of different ways but will typically be for one of the following: Non-payment of rent or other sums reserved under the lease.
Step 1: Speak to your tenant. Step 2: Provide notice of contract breach. Step 3: Decide between an interdict or cancellation. Step 4: Eviction process. Step 5: Eviction notice. Final advice.
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.Typically a lease will give the parties adequate notice and time to fix the problem before more drastic action is taken.
Cross default is a provision in a bond indenture or loan agreement that puts a borrower in default if the borrower defaults on another obligation. For instance, a cross-default clause in a loan agreement may say that a person automatically defaults on his car loan if he defaults on his mortgage.
Default by landlord The most common form of landlord default is failure to provide services and maintain the property condition. When a landlord defaults on the terms of the lease, tenants may sue for damages.
A clause which operates by automatically defaulting a borrower under Agreement A when it defaults under Agreement B. A cross-default provision effectively gives the lender under Agreement A the benefit of the default provisions in Agreement B. Cross-default provisions therefore have a domino effect.
A default clause is a provision in a legal contract that states what will happen if either party in a contract defaults or fails to hold up their end of the agreement. These clauses can be found in any type of contract including loan agreements, lease agreements, and property agreements.
