What happens to a lease agreement in the event of a death
Category Rentals
It should be noted that the lease agreement does not die with the tenant. The lease remains binding and falls onto the legal guardian or estate (as the case may be) who will need to provide the landlord with a 20-business days' cancellation notice with reasonable penalty fees.
This is to provide the landlord with sufficient time to find an alternative tenant. It also means that rental payments remain due monthly until the notice in writing is agreed upon by both parties.
The holding deposit can be utilised towards the penalty fees. The property must, however, be handed back to the owner in the same condition as it was received. That means that should maintenance be required on the part of the tenant such as the costs of cleaning the house and garden, servicing the swimming pool, this will also need to be covered by the deposit. Any shortfall will be for the account of the legal guardian/estate.
The agent needs access to the apartment for reletting purposes as soon as possible to avoid unnecessary delays. A reasonable penalty fee is usually equivalent to one month's rent dependant on the property and lease.
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Author: Natheema Khondker
