Default Remedy Clause
What is this form?
The Default Remedy Clause is a legal document used in office leases to outline the obligations of tenants in case of a lease default. This form specifies that landlords can collect the difference between the rent due and any rent collected from a new tenant, establishing clear guidelines on financial responsibilities in the event of tenant default. This form is essential for landlords to mitigate losses and enforce lease terms effectively.
Key parts of this document
- Clauses detailing tenant obligations upon default.
- Section on rent collection by the landlord during the default period.
- Provisions for re-letting the premises and adjusting rental terms.
- Specification of liquidated damages and payment schedules.
- Rights of landlords to pursue additional remedies.
When this form is needed
This form is utilized when a tenant fails to meet their rental obligations under the lease. It provides the landlord with the necessary legal framework to recover lost rent and pursue further action. Landlords should use this form to clarify their rights and procedures for collecting unpaid rent if a tenant defaults.
Intended users of this form
- Landlords seeking to protect their financial interests in office leases.
- Property management professionals managing commercial real estate.
- Attorneys representing landlords in lease negotiations or disputes.
- Tenants wanting to understand their obligations and potential liabilities.
Completing this form step by step
- Identify the parties involved, including the landlord and tenant.
- Specify the property being leased to which the clause applies.
- Enter the agreed rental amounts and any relevant dates.
- Outline the landlordâs rights in the event of tenant default.
- Ensure all parties sign and date the form to validate the agreement.
Notarization requirements for this form
In most cases, this form does not require notarization. However, some jurisdictions or signing circumstances might. US Legal Forms offers online notarization powered by Notarize, accessible 24/7 for a quick, remote process.
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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
- Not clearly defining the terms of rent collection and tenant obligations.
- Failing to specify the consequences of default, leading to misunderstandings.
- Ignoring state-specific legal requirements that might affect enforceability.
- Not ensuring all necessary parties have signed the document.
Why use this form online
- Convenient access to legal forms from anywhere at any time.
- Editable templates that allow for customization to fit specific needs.
- Reliability reinforced by templates drafted by licensed attorneys.
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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.
