Legal Question in Real Estate Law in California
Breaking this lease
I'm about to sign a 12-months lease which is confusing to me in terms of breaking the lease. It says:
''14. DEFAULTS, REMEDIES AND NOTICES. .. If Tenant is evicted or terminates the Lease prior to the expiration date, Landlord shall resume possession of the Apartment. Tenant shall continue to pay Rent, Additional Rent and all other required fees until the Apartment is re-rented. ...
14.1 EARLY LEASE TERMINATION. A lease break fee equivalent to three times the monthly rent is due upon move-out if the lease is terminated by the Tenant. Tenant is still required to return the lease premises in the same condition in which it was when the Tenant leased the property. If the Landlord would have previously been entitled to deduct any money from the security deposit as the result of the condtion of the property when it was vacated by the Tenant, then Tenant will be liable to the Landlord for the amount of the damages.''
What happens if I have to break the lease? Do I then have to pay only the ''lease break fee'' plus security deposit (as stated in clause 14.1) or do I also have to pay the remaining rent until the Apartment is re-rented?
2 Answers from Attorneys
Re: Breaking this lease
Assuming that the lease is for property in California, if you break the lease the landlord can recover the worth of the unpaid rent plus costs of re-renting the apartment. See Civil Code section 1951. However, the following lease provision would be enforceable:
"The lessor has the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect after lessee's breach and abandonment and recover rent as it becomes due, if lessee has right to sublet or assign, subject only to reasonable limitations)."
Section 14.1 of the lease is clearly unenforceable in California. The lease break fee is illegal. You also do not have to put the apartment in the same condition as when you rented. You are entitled to "reasonable wear and tear" without additional charge. What is reasonable is a matter of opinion and often is decided in small claims court.
Re: Breaking this lease
The previous comments are 100% correct....the lease-break penalty wouldn't be enforceable here. Still, if you are thinking in advance that you might 'break' a 12-month lease, maybe you are better off renting on a month-to-month basis. A lease is a contract and 'breaking' a lease is a fairly serious breach of contract which can have a negative impact on your credit, among other possible undesirable effects.
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