his contract has just been renewed by the seller. It has an item which I am not convinced about. Can I make it better for myself? It reads "DEFAULT IN PAYMENT OF RENT. If any rent required by this lease is not paid when due, Lessor will have the option to: a. Terminate this lease, resume possession of the property, and recover immediately from Lessee the difference between the rent specified in the lease and the fair rental value of the property for the remainder of the term, reduced to present worth; or b. Resume possession and release or rent the property for the remainder of the term for the account of Lessee and recover from Lessee at the end of the term or at the time each payment of rent comes due under this lease, whichever Lessor may choose, the
difference between the rent specified in the lease and the rent received on the releasing or renting." Would you say that this clause seems weak and not favorable to me as landlord when recovering debt for rental payments? What wording would be stronger? THANKS!!
You really should hire a lawyer to review all these documents PRIOR to closing.
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If you bought the property after the lease was renewed, you are subject to its terms and can not make changes. As for future leases, have a real estate attorney prepare one that may be stronger. Having said that, consider that the lease provision mirrors the law on the subject. Check out Chapter 83 Florida Statutes for comparison.
I am sure there are other provisions that can be strengthened. For example, does the lease have an attorney's fee provision? Unlike residential tenancies, which has Sec. 83.48, commercial tenancies have no equivalent provision so if it is not in the written lease it is not available. How about an interest provision? If there is no reference, then the default rate [currently 4.75%] applies, but in a written contract an 18% interest rate upon unpaid rent can apply? How about treatment of late fees? Can it be treated as rent, so that if a 3-day notice is to be issued for non-payment the late fees can be included? How about........ And I am not a real estate attorney, so these issues are just off the top of my head, a real estate attorney would probably be able to identify many other important issues to be addressed in a lease.
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