Tenants who entered into leases without having them reviewed frequently find themselves dealing with landlord breaches. Some people withhold rent right away, not realizing that they may be in breach of a commercial lease. Others simply leave the premises, only to be sued later.

The construction of significant government infrastructure, such as roads, frequently necessitates the compulsory acquisition in Victoria of a large number of homes and properties. Authorities can get the title to land by either acquiring it or through a formal statutory acquisition.

Tenant defaults are classified into two types:

Monetary defaults – happen when a tenant fails to pay rent or other payments due under the lease, such as running fees, real estate taxes, or utilities.

Non-monetary Defaults – occur if a tenant fails to deliver a non-monetary duty under the lease.

What happens if you violate the terms of a commercial lease?

Surrender

If both the tenant and the landlord voluntarily agree to cancel the lease early, you can "surrender" the lease by "operation of law." This essentially means that the renter relinquishes control of the premises and the landlord assumes possession. Surrender is frequently demonstrated by the renter returning the keys to the landlord.

Breach

If the tenant fails to meet their responsibilities, the landlord has the right to cancel the lease. Most leases are terminated because the tenant fails to pay the rent. You should consult your lease agreement to see how much time must elapse before you may terminate the lease for nonpayment of rent and how much notice of default you must provide to the tenant before acting.

Conclusion:

In the case of the other party's default, both tenants and landlords have a number of remedies open to them. Because of the severe repercussions that may arise from an incorrect application of these remedies, both renters and landlords would be well to counsel with a lawyer when faced with the default of the other.

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