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Frederickson & Pick Blog

Commercial Landlord’s Acceptance of Partial Payments after Default

  • Roger Frederickson
  • January 14, 2016

The eviction of a commercial tenant can be messy. Often, after the tenant has been served with the notice of termination of the tenancy, negotiations ensue, which result in the acceptance of partial payments and agreements to extend the payment period. Typically, these further agreements are breached and the payments discontinued. Landlords often struggle with the issue of whether these agreements or accepted partial payments either modify the lease agreement, create a further leasehold, or will force the landlord to recommence the eviction process.

A commercial landlord who accepts a partial payment of rent after serving the default notice can proceed with the unlawful detainer action without further notice to the tenant in order to recover the balance due.

In addition, a commercial landlord who accepts a partial payment after the complaint is filed does not waive any rights and can amend the complaint without a court order or further responsive pleading from the tenant, if notice is given to the tenant that the acceptance of partial payment does not waive any rights, including the right to recover possession of the premises.

Also, provided the lease agreement includes a strong integration clause, requiring modifications to the lease to be in writing and signed by the parties, agreements to extend the default period pending the tenant’s remedy of the default, cannot operate to modify or amend the lease agreement.

If you are a commercial landlord facing the prospect of evicting a commercial tenant, contact Frederickson Law today for a free consultation and case evaluation.

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