Legal Question in Real Estate Law in California

Automatic Renewal Clause in Lease

Hi there,

My lease for my business in an executive suite expired last month. It was a one year lease. I just gave notice that I am leaving January 31st of 2005, today is December 1st, 2004 (60 day notice). The leasing manager told me that my one year lease had ''automatically renewed'' to another one year lease, at a 120% rate increase, becuase I didn't give notice before the end of the original lease. I did not know this was in my lease. Sure enough, it was in there when i looked, but your website said that if it wasn't bolded in the lease contract that it wasn't binding.

Can they hold me to another one year? This doesn't seem legal as it was buried in page 6 of 9 of my lease and it wasn't bolded or capitalized or italicized in any way to bring attention to it.

Please let me know if you can be of any help.


Asked on 12/01/04, 8:12 pm

3 Answers from Attorneys
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Automatic Renewal Clause in Lease

What a rip-off scheme. If they file an action for breach, you will have to defend it. Certainly it may be alleged that it was invalid and other defenses as well. Call me directly at (619) 222-3504.

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Answered on 12/02/04, 12:05 pm
Larry Rothman Larry Rothman & Associates

Re: Automatic Renewal Clause in Lease

The renewal clause has to be in a minimium font size. We will be happy to review the lease to see if it meets that criteria. In addition, we can discuss with you other options to leave the premises.

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Answered on 12/02/04, 5:36 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Automatic Renewal Clause in Lease

I believe the provision of law you're referring to is Civil Code section 1945.5. Unfortunately, it applies only to "residential real property."

A quick Westlaw search for decisions in cases involving commercial leases disclosed nothing.

Therefore, I suspect (without being sure) that automatic renewal clauses can be included in leases of commercial property without the special type-size or above-the-signature warning that are required for enforceability in residential leases.

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Answered on 12/01/04, 9:24 pm


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