Lease Acceleration Agreement
A Lease Acceleration Agreement is a legal contract that allows a landlord to expedite the rental payment schedule of a tenant under certain conditions, typically upon the occurrence of a specified event or default.
In this agreement, the landlord may have the right to demand immediate payment of the remaining rent due under the lease if the tenant fails to meet specific obligations, such as timely rental payments or maintaining the property. This provision is designed to protect the landlord’s financial interests by allowing them to recover unpaid rent more quickly, rather than waiting until the end of the lease term.
For example, if a tenant falls behind on rent payments, the landlord can invoke the Lease Acceleration Agreement to require the tenant to pay the total outstanding balance immediately, instead of allowing the tenant to continue making partial payments over time. This can also apply in cases where the tenant has violated lease terms, leading to a potential eviction.
Overall, a Lease Acceleration Agreement serves as a crucial tool in lease contracts, providing landlords with a mechanism to address tenant defaults effectively and reduce the financial risks associated with prolonged non-payment.
« Back to Glossary Index