What is eviction?
Eviction generally refers to the removal of a tenant from a rental property, by the landlord, or the removal of an owner of the property, from premises that are being foreclosed on, and is applicable in both residential and commercial real estate.
A commercial eviction usually occurs as a second-tier solution, after other resolution options have been tried and have failed. The owner of a commercial space may choose to evict a commercial tenant for not having paid the rent, or for having breached some of the lease agreement terms.
If other options fail and the decision to evict is made, the owner or landlord is required to follow a certain process, in order for the eviction to be legal. Simply changing the locks is generally not acceptable.
Does filing for bankruptcy prevent or stop eviction?
The commercial eviction process generally takes longer and is more costly than a residential eviction. In order for a commercial eviction to be legal, it must meet certain requirements, which include, but are not limited to:
– Notice of Default – in the case of non-payment, even if the lease agreement does not require it, it is generally recommended that the owner/landlord provide a notice of default which states that the rent is past due, as well as sets a deadline for acceptable delayed payment (“good faith”)
– Just cause – the owner/landlord (evictor) must satisfactorily prove the tenant’s fault, as well as the fact that other resolutions have been negotiated and have failed
– Compliance – the landlord has to comply with the lease agreement terms, as well as the applicable laws regarding termination and eviction, if he/she chooses to exercise this right. Though not equally applicable in all jurisdictions, there is a balance between the landlord’s rights and the tenant’s rights
In any situation, it is generally recommended that a specialized commercial real estate law attorney is consulted or employed for the termination of lease and eviction.
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