Legal Question in Real Estate Law in Illinois

Arm and leg to break rental lease ?
I've rented my townhouse for 6 months. I've now bought a house, so have too break the yearly lease. The landlord wants 2 months notice (given), repayment of incentive dollars ($110/= a month in rent reduction payback - agreed), cleaning charges (agreed), AND $2,200/= penalty. Has anyone experienced this PENALTY before ? Is this legal & reasonable ? The fine print on the contract vagely refers to this.

Asked on 11/21/01, 2:51 pm

2 Answers from Attorneys

Alexander Rozman Rozman Law Practice

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Re: Arm and leg to break rental lease ?

It seems your landlord is using unfair tactics to collect fees. A penalty clause in a contract may not be enforceable if it is a liquidated damages clause. Under contract law the landlord is entitled to be comensated for lost damages but the law discourages penalty fees which are unearned liquidated damages. The penalty does not seem legal nor reasonable. However, a threshold question is how much were your monthly rental payments? If the lease was signed in Chicago you will have strong tenant protection law defenses at your disposal. Even if it wasn't, liquidated damages clauses are discouraged by the courts. I suggest you hire an attorney to negotiate on your behalf.

Answered on 11/21/01, 5:18 pm

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