Do you need to prepare a default notice to a tenant? Find out how here.
What is a default notice?
In the context of a lease, this is a notice telling the tenant they are in breach of the lease. In most cases, the notice should also say other things. For instance, the notice may state what the breach is. It may also state what the tenant must do to fix the breach. This is where the breach is capable of remedy. Or the notice may require the tenant to compensate the landlord for the breach.
If you want to know more about what a breach is, see here.
Is a default notice necessary?
In most cases, yes. The law requires a notice before you as landlord can take back the premises. Although, there are some exceptions to this. One such exception is where the tenant fails to pay rent. But this may also depend on what your lease says. It may also depend on whether the lease falls within the recent COVID laws.
The law may also require you to state certain things in the notice. For instance, the common law may require the notice to state what the breach is. It may also require the notice to state what the tenant must do to fix the breach. This may sound obvious, but there are cases where the landlord failed to do these things.
The law also has rules about how to serve a notice.
Consequences of not doing a default notice properly
This can get you into big trouble. If you fail to issue a notice properly, a court could find it to be void. This could lead to claims from the tenant for wrongful termination. Such claims would likely run into tens of thousands of dollars. This is so even for a small lease. This is on top of legal costs.
It is crucial that you prepare a notice properly. It must comply with the law or you risk the tenant making a claim against you.
Who prepares a default notice?
This is where we come in. We can prepare a notice and make sure it complies with the law. If you want to know more, please contact us here or below.
This article is not legal advice. You should get independent legal advice to deal with your situation.
For more articles, see here.