Commercial eviction: how it works and how to protect yourself
Commercial eviction is the route to recover a leased property when there is a breach of the contract or other legal grounds. Understanding the procedure can help both landlord and tenant take precautions.
What commercial eviction is
Eviction is the action that seeks to recover the property that is the subject of a lease. In the commercial context, it relates to non-residential leases governed by the Tenancy Law, and it may have various grounds depending on the contract and the specific situation.
Main grounds for eviction
The grounds vary according to the contract and the law. Among the situations that usually support the claim are:
- Failure to pay rent and charges
- Breach of contractual clauses
- Expiry of the contractual term in certain cases
- Need for own use or renovation, where applicable
How the procedure usually proceeds
Once the action is filed, the tenant is summoned to present a defense. Depending on the grounds, the law may provide for the so-called cure of default, that is, the possibility for the tenant to pay the debt in order to avoid eviction, within defined conditions and deadlines.
How the tenant usually protects themselves
Prevention tends to begin before the dispute, with attention to the contract and the documentation. Some measures usually reduce risks:
- Keep proof of payment organized
- Review deadlines, guarantees, and renewal clauses
- Check the possibility of a renewal action, where applicable
- Seek guidance when faced with notices
Frequently asked questions
Can the tenant avoid eviction for non-payment?
In many cases the law allows the cure of default, permitting payment of the debt and charges within a deadline. The possibility depends on the grounds and on the circumstances of the case.
Does a business location guarantee staying in the property?
Not automatically. There is the renewal action, which may secure renewal under certain conditions, but its requirements must be observed according to each situation.
Need guidance on this topic?
This article is informational. For guidance on your specific case, talk to our team.