Seward Law Office, P.A.

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Can I break my commercial lease?

Sometimes, a commercial lease becomes impractical. Whether your business is hitting hard times or you are unhappy with your landlord, you may want to just pack up your office and leave. However, you should not leave before you understand the possible repercussions.

It may be difficult to terminate your commercial lease prematurely without facing any financial liability. Here is a look at some of the consequences you may face for breaking your lease and when you may actually be able to stop renting without any ramifications.

Financial liability

If you are in a long-term lease and leave it early, you will probably be responsible for the remaining rent payments. Your landlord may bring a lawsuit against you to collect these monetary damages. You may lose out on a lot of money if your landlord sues you over a broken lease agreement.

Grounds for early termination

There are certain circumstances in which you may be able to get away with an early termination. Make sure you carefully review your lease to identify any provisions that deal with early termination. Your lease may actually contain provisions that allow you to leave your lease in certain situations. Here are some clauses to look out for that are present in some leases:

  • Break provision: A break provision gives a tenant the ability to break the lease before the term is complete. The clause includes conditions that may justify termination.
  • Breach provision: A breach clause allows for a tenant to terminate the lease if the landlord breaches the lease.
  • Assignment provision: An assignment allows for a tenant to transfer the leased property to another person before the lease expires.
  • Modification provision: A modification clause allows for a tenant and landlord to modify the duration or monthly payment of the lease.

If your contract contains any of these clauses, you may be able to end your lease without facing the threat of a lawsuit, depending on the circumstances.

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