OK, arflawyers, riddle me this... (I know, consult a lawyer). I'm just wanting to see some more opinions before I pay to consult one.
We got a notice of non-renewal on lease due to owner's intention to sell. Due to market, we have decided not to wait to break the lease lest we end up in a crunch on finding a place (fast paced market here and we have a place lined up so we aren't stuck in the summer rush). We have a few months left on the lease.
Here are the two pertinent sections of the lease as far as termination:
A - covers military moves
B - covers restraining orders
C. If the Tenant terminates possession of the property under this Lease Agreement for any other reason prior to the Term end date, Tenant
shall be liable for the following costs:
• The monthly rent until the property is re-rented, or the end of the Term, whichever is earlier.
• An Administrative/Marketing Fee of $800.00 which shall be paid to Agent.
• All utilities until the property is re-rented.
• Cost to re-key all locks.
• Any other additional charges incurred to get the property re-rented.
• All maintenance and other costs that are the responsibility of Tenant under this Lease Agreement.
D. Should Tenant default on this Lease Agreement by terminating possession prior to the expiration of the Lease Term, and Owner opts to
sell the property in lieu of placing the property back on the rental market, Tenant agrees to pay the remainder of any rents due through the
end of the month which keys/possession are returned, and the Administrative Fee shall instead be $800 plus an amount equal to one month
of rent.
View Quote
The way I read Section C, it assumes it WILL be re-rented/back on market. But it won't be. The $800 fee is categorized as admin/marketing in Section C. In Section D, just as administrative (nothing to market).
Section D seems more pertinent. While it's written in the order of break lease -> owner opts to sell, he has already opted to sell, which is what is spurring our intention to break the lease.
The rental agency is saying we would be subject to Section C, not Section D.
I don't see how our situation is contractually covered, since it's kind of a mix of situations with the most obvious section being D as I read it.
Thoughts?
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UPDATE: The owner has agreed to simply release us from the lease. This is the best solution for everyone since he intends to sell. Keeps the place from just sitting for the next few months to make a few bucks (which if something went wrong, might become a negative value), with high potential to sell quickly and transfer all his current risk to the new owner.