Legal Question in Real Estate Law in California
Breaking an apartment lease early due to work transfer
I may be transferring to a new state with my work and just moved into a new apartment location 2 months ago. I signed a 13 month lease. After re-reading my lease there isn't anywhere in writing what the consequences are to me if I break my lease early. I brought this up to the leasing office and there response was ''It isn't in writing because it is different for each property they manage.'' They preceeded to tell me that it is 30 days notice, buyout of 2 months rent and any discounts provided at move in.
My question is - If I didn't sign anything in writing which states what the consequences would be in case of breaking the lease early, how can they inforce it? Is it legal? Or does the state of California have some unwritten law that this is standard practice? Also does it make a difference that it is due to a job transfer?
1 Answer from Attorneys
Re: Breaking an apartment lease early due to work transfer
The clauses that may or may not be in your lease are called "liquidated damages" clauses. They are sometimes used where calculating a party's actual damages resulting from breach of contract by the other party would be difficult to calculate. Liquidated damages clauses are somewhat frowned upon as prejudging the results of a possible lawsuit in advance, thus benefitting someone to the other's detriment. However, they are becoming more widely accepted due to the cost of litigation. They must be realistic to be enforceable. The Civil Code contains some statutory limits on liquidated damages in residential leases, but most big property management companies understand these limits very well and work their clauses around the limits so they are (barely) legal and enforceable. Please note that they can work to the tenant's advantage in some situations!
If your lease has no liquidated damages clause, or if it is uneforceable, you are liable for whatever damaged the landlord actually sustains as a result of your breach, but not to exceed what the losses would be IF the landlord diligently pursued re-renting your now-vacant place after your departure. This is called "mitigation of damages" and acts as a cap on damages where the landlord is lazy or vindictive.
One way or another, you will be responsible for damages if youbreach your lease without cause.
Leaving the area due to a job transfer is NOT a ground which justifies breaking (breaching) a lease.
Tenants can sometimes avoid breach by subletting or assigning their lease to a new tenant.
You should work cooperatively with the management to come to a peaceable solution, keeping in mind that your downside is that you might be liable for about 11 months rent!