Legal Question in Landlord & Tenant Law in California

Re: lease break fee

It depends largely upon what type of property you are talking about. You did not indicate if it is residential or commercial. In residential, the landlord is more limited in what s/he can recover for a default on a long-term lease, but yes, they can recover for their lost rent while it is actively being marketed. They cannot, however, charge you for the two months they held it off the market, unless it was to repair damage you caused. In a commercial context, you could be liable with very little limitation on total damages. In theory, in a commercial lease setting, you could be liable through the end of the lease term. You should consult with a local real estate attorney to review your lease and the specifics surrounding what has happened to determine your potential liability, and/or negotiate a settlement.

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