The Pros And Cons Of Forfeiture

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Forfeiture Forfeiture is the termination of the lease If a tenant breaches a covenant under the tenancy the landlord may have the right to re-enter the property to end the tenancy. This is known as forfeiture. The landlord can only forfeit a tenancy if such a right for breach of particular terms of the tenancy and is expressly stated in the tenancy. When forfeiting a tenancy, the landlord can either issue proceedings for recovery of possession or peacefully re-enter the premises. Usually, the first method will be used, as the landlord does not want to run the risk of any claim of violent re-entry. It is possible for a landlord to waive their right of forfeiture. This will occur if the landlord, knowing of the breach, performs an act that recognises…show more content…
The reason for this is that the act of demanding rent recognises that the tenancy is continuing even after the breach has occurred. However, if the breach itself then continues, the right to forfeit, though waived on one occasion, will arise again. Landlords should always get legal advice on their options in taking forfeiture action because it carries significant risks. For example, if not done properly, forfeiture can expose a landlord to a significant damages claim by the tenant. Ending the tenancy for non-payment of rent The landlord can use either the CRAR procedure (mentioned above) or can forfeit the lease, but cannot do both. In order to forfeit the lease the landlord must make a formal demand for rent, unless the lease specifically exempts them from this obligation. To avoid the technicalities of a formal demand, most leases will state that the lease will be forfeited if the tenant is in arrears for a specified amount of time (often 21 days), whether or not it is formally demanded. However, the tenant may apply to court for relief from forfeiture. If the landlord goes to court the action will be suspended if the tenant pays all the arrears of rent together with the landlord 's legal costs before the

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