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.

1. What is the right to forfeit?
2. When should a Section 146 Notice be served?
3. What form should the Section 146 Notice take?
4. What is a reasonable time for the tenant to remedy the breach?
5. Following a tenant breach of a repair covenant, when does the right to claim damages arise?
6. What if the breach complained of is non-payment of rent?
7. What happens after the Section 146 Notice has been served?
8. What steps can the landlord take to forfeit?
9. Can a landlord lose the right to forfeit?
10.  Is forfeiture the only option?

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