7.3 Default and Termination

Default and Termination

If either the landlord or tenant violates lease terms (defaults), the other party may pursue court action for:

• Damages
• Cancellation of the lease
• Specific performance (court compels the defaulting party to fulfill their obligation)

Default by Tenant: Most often for unpaid rent or failure to maintain the property. The landlord may file a suit for possession (eviction) after proper notice. The landlord can also sue for damages.

Default by Landlord: Most commonly for failure to provide services or maintain the property. The tenant may sue for damages or claim constructive eviction (must vacate first), which can nullify lease obligations.

Causes for Lease Termination:

• Breach or default
• Expiration of lease term
• Proper notice (for periodic or at-will leases)
• Voluntary agreement
• Property destruction
• Condemnation (eminent domain)
• Foreclosure
• Death of a party (for at-will leases or life estate landlords)
• Abandonment by tenant

Note: Vacating the property does not always mean abandonment if the tenant continues to meet lease obligations.

Check-In Questions

• What is a landlord’s typical remedy if a tenant fails to pay rent?
  File a suit for possession (eviction)
  Abandon the property
  Cancel the lease without notice
  Ignore the problem
  Show Answer

  Correct Answer: File a suit for possession (eviction)
  The landlord can seek eviction after proper notice if the tenant defaults.
• What is constructive eviction?
  Landlord’s right to evict for nonpayment
  Tenant’s right to vacate and cancel the lease due to landlord’s default
  Automatic lease renewal
  Lease transfer to another tenant
  Show Answer

  Correct Answer: Tenant’s right to vacate and cancel the lease due to landlord’s default
  Constructive eviction requires the tenant to leave the premises first.