A commercial tenant's percentage lease requires the tenant to submit monthly sales reports and allow the landlord to audit the tenant's books annually. The tenant refuses to provide the sales reports. What remedy does the landlord have?
Correct Answer
A) The landlord may pursue remedies specified in the lease, which may include default proceedings, because the reporting requirement is a material lease obligation
Sales reporting is typically a material obligation in a percentage lease. Failure to comply may constitute a default, giving the landlord the right to pursue remedies specified in the lease, including demand for access to records, monetary damages, or lease termination.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A freehold estate represents ownership of real property with an indefinite duration.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
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