Real Estate Q&A: Exercising the right to forfeit and Section 146 notices
When a tenant is in breach of its lease, a landlord can pursue various remedies. One of these is the right to determine the lease by forfeiture.
Kathryn Murphy discusses ten key questions surrounding forfeiture of commercial leases; exploring what the landlord’s rights are, the form of a Section 146 Notice and how to serve it, what constitutes a reasonable time for the tenant to remedy the breach and whether forfeiture is the landlord’s only option on the breach of a tenant’s covenant.
- What is the right to forfeit?
- When should a Section 146 Notice be served?
- What form should the Section 146 Notice take?
- What is a reasonable time for the tenant to remedy the breach?
- Following a tenant breach of a repair covenant, when does the right to claim damages arise?
- What if the breach complained of is non-payment of rent?
- What happens after the Section 146 Notice has been served?
- What steps can the landlord take to forfeit?
- Can a landlord lose the right to forfeit?
- Is forfeiture the only option?