11 Apr Rental Agreement Forfeiture
Once the forfeiture is in question, the lease is transferred to the tenant and an application for forfeiture exemption is filed with the court. When a tenancy agreement is cancelled for failure to pay rent, it is very rare for the court not to grant relief, provided that the tenant arrives immediately, completely reduces arrears and pays the reasonable interest and legal costs of the landlord resulting from the forfeiture. The granting of the discharge has the effect of re-entering the lease under the previous conditions. If the landlord and tenant agree on the conditions of offloading between them and animate the conditions of tenancy without a decision of the court, this contract should lead to a new tenancy agreement to which will apply the 1954 law on landlords and tenants, whether or not. It is important that both parties be cautious in this regard and that legal advice is sought before a private agreement is reached. Tenants who are at risk of forfeiture (or who have already been excluded from the premises) want to know if they can challenge the landlord and/or how they can apply for “forfeiture relief,” repossess and, importantly, minimize disruption to their activities. Before the owners take action and take over the property, they are well advised to seek legal advice. If you are a tenant and wish to avoid forfeiture or apply for a formal exemption from recovery, legal advice is also recommended. We are experienced in this area of law, so please contact our commercial real estate lawyers in our London offices. The exercise of an expiry fee and the reintroduction into commercial premises demonstrate the unequivocal intention of a lessor to terminate the lease. A lessor may reintegrate a property in one of two ways: is an explicit right in the tenancy agreement, i.e. the tenancy agreement contains a forfeiture clause that allows the lessor to succumb to the alleged violation of the tenant.
For example, the lease may provide that the lessor has the right to terminate the lease for non-payment of rent within 14 or 21 days of maturity or after the arrival of a particular event described in the lease (for example. B any type of insolvency declared as an event justifying the right to forfeiture is the right of a lessor to terminate a tenancy agreement following a tenant break.”