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A commercial landlord has the right to forfeit a lease where a tenant is in breach of a covenant. The most common breach of covenant for a commercial lease is the duty to pay rent. If the tenant fails to pay rent when it falls lawfully due then the landlord will be entitled to terminate the lease.
Invariably, a lease will contain a provision that in the event the rent is not paid, or some other covenant is breached, then the lease can be brought to an end by the landlord. The impact of this on the lease is that legally it no longer exists.
Forfeiture occurs when the landlord exercises their right to regain peaceable possession against the wishes of the tenant. This is usually where the tenant has breached a condition of the lease or has breached a covenant.
The ability to forfeit enables a landlord to re-enter their property following a breach by the tenant, and by doing so, terminate the lease. Depending upon the reason for forfeiture, termination can take place with immediate effect, or following a period of notice.
According to Section 5 (a) a landlord is entitled to eject a tenant, as defined in the Act, on the ground of non-payment of rent or a breach of the conditions of the tenancy.
Definition of forfeiture 1 : the act of forfeiting : the loss of property or money because of a breach of a legal obligation assets subject to forfeiture. 2 : something (such as money or property) that is forfeited : penalty. Synonyms More Example Sentences Learn More About forfeiture.
This clause will ordinarily give the landlord the right to forfeit once the tenant has been in breach for a period of time typically 14 or 21 days.
6 Answers. Hi, if the landlord does not paid the amount then you have to issue legal notice ask the landlord to repay the amount. 2. Landlord fail to pay the amount inspite of notice then you have to file suit for recovery of money.
Invariably, a lease will contain a provision that in the event the rent is not paid, or some other covenant is breached, then the lease can be brought to an end by the landlord. The impact of this on the lease is that legally it no longer exists.
Forfeiting a lease for non-payment of rentOrdinarily, a right of forfeiture may only be exercised if it is expressly provided for within the lease. The exception to this is that the landlord may have 'implied' right where the tenant has breached a condition (a fundamental requirement of the contract).