Legal Question in Real Estate Law in California
renewal of lease not signing
does this phase in a a lease make it legal for the owner to have a new lease with out a signature of the leasee?
''(b) If Tenant is not in default hereunder, Tenant shall have the option to renew the term of this Lease after the Initial Term for two (2) additional terms of five (5) years each (the Renewal Terms (s)�), which together with the Initial Term shall be referred to herein as the �Term�). Except as otherwise set forth herein, such Renewal Terms shall be upon the same terms and conditions contained in this Lease for the Initial Term. Tenant shall be deemed to have exercised its option to renew for each Renewal Term unless it notifies the Landlord in writing of its intention not to renew not more than one hundred eighty (180) nor less than one hundred and twenty (120) days prior to the expiration of the Initial Term or any Renewal Term.''
Thank you,
2 Answers from Attorneys
Re: renewal of lease not signing
Yes, it makes sense to me. In essence, renewal is automatic under the same terms as the original lease, unless you notify the landlord from 120 to 180 days before the lease would expire. The same holds true toward the end of the renewal period. Not the easiest to understand, though, especially for someone not used to legalese.
Re: renewal of lease not signing
I would consider this language to be an automatic renewal provision, since it puts a burden to give prior notice of NOT exercising the option on the tenant.
If this is residential property, the landlord and the lease must comply with the provisions of Civil Code section 1945.5 regarding making the renewal provision conspicuous; otherwise, the renewal is voidable at the tenant's option.
I do not know of any similar restriction on the right of the parties to a commercial lease to make renewal more or less automatic. The law assumes that commercial tenants are less in need of protection against such provisions in the fine print of their leases.
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