• May 6, 2017

Quiet Enjoyment

Quiet Enjoyment

All leases include a covenant of quiet enjoyment, whether explicit or implicit. In exchange for complying with the terms of the lease, tenant may peaceably and quietly enjoy the demised premises.

Landlord Advocates: Your initial lease draft should provide for quiet enjoyment being subject to total compliance with all terms and conditions of the lease. For example:

Owner covenants and agrees with Tenant that upon Tenant paying all fixed rent, additional rent and any other charges or fees due under this Lease and observing and performing all the terms, cove­nants and conditions, on Tenant’s part to be observed and performed, Tenant may thereafter peaceably and quietly enjoy the premises hereby demised, subject, nevertheless, to all of the terms and conditions of this Lease including, without limitation, any ground leases, underlying leases and mortgages.

Tenant Advocates: Negotiate for quiet enjoyment to be solely conditioned on whether or not tenant is in default of the lease subsequent to the expiration of any cure period. For example:

Owner covenants and agrees with tenant that provided Tenant is not in monetary or material non-monetary default of this lease beyond the expiration of any applicable notice and cure period, Tenant may thereafter peaceably and quietly enjoy the premises hereby demised, subject, nevertheless, to all of the terms and conditions of this lease including, without limitation, any ground leases, underlying leases and mortgages.

Tenant Advocates: Negotiate for language requiring the landlord to use its best efforts to ensure that other tenants do not interfere with tenant’s right of quiet enjoyment. It is important that tenant have options in the event that tenant’s quiet enjoyment is disturbed, so that tenant has some recourse. For example:

Furthermore, Landlord covenants and agrees with Tenant that Tenant shall and may peacefully and quietly have, hold and enjoy the Premises hereby demised for the intended purpose as hereinbefore described. Landlord shall use best efforts to ensure that the actions of other tenants do not interfere with Tenant’s right of quiet enjoyment. Upon the failure of Landlord to provide such quiet enjoyment, Tenant may pursue any and all remedies pursuant to law, equity or the terms of this Lease, including, without limitation, the right to:

Restrain the same by injunctive relief;

cancel and terminate this Lease upon fifteen (15) business days’ notice in writing, and upon giving such notice this Lease shall terminate on the day fixed in such notice in like manner as if the date were the date originally fixed for the termination thereof herein (unless within such fifteen (15) business day period Landlord cures such default); and/or

receive an abatement in fixed rent of ___ percent (___%) during the period that such failure continues.

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