Shareholder Shawn Rader discusses the use of rental acceleration provisions on the Lowndes Leasing Lawyers blog.
By: Shawn Rader
If a tenant defaults upon payment of rent, the landlord does have a right to accelerate the balance of the rental due for the remaining lease term. This practice is not, however, favored by the courts; therefore, the provision must be clear.
An enforceable provision will simply state that upon default, the landlord may accelerate as due all rental remaining due under the lease. Provisions which state that the tenant is liable for the remaining rental less the fair market value thereof are not accepted as acceleration clauses. [...]
This is an excerpt from a blog post originally written on Lowndes Leasing Lawyers. To read the entire post, click here.
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