Full question:
I received a notice of lease termination on a warehouse space I rent in Grand Forks ND. The lease is from 12/01/07 to 12/31/10. The lease is being terminated due to delinquent rent payments of 2 months. The attorney representing the landlord says that in ND I am still going to be held liable for the remaining amount of money owed under the remaining term of the lease. Is that possible? Can they terminate the lease and still collect the lease rents up to 12/31/10?
- Category: Landlord Tenant
- Subcategory: Lease Termination
- Date:
- State: Minnesota
Answer:
If the lease is breached due to no fault on the landlord's part and the landlord served proper notice of termination, then it is possible for the landlord to claim the remaining rent on the lease as damages. However, the landlord has a duty to mitigate (lessen) damages by making a reasonable attempt to relet the premises. This generally means that the landlord must advertise the premises and make attempts to show the premises to prospective tenants. Any rent from the new tenant for the remainider of the lease term must be deducted from the damages claimed. Also, it may be possible to pay the rent owed to redeem the lease. Please see the statutes below to determine applicability.
Please see the following MN statutes:
504B.291 Eviction Action for Nonpayment; Redemption;
other Rights.
Subdivision 1. Action to recover. (a) A landlord may
bring an eviction action for nonpayment of rent irrespective
of whether the lease contains a right of reentry clause.
Such an eviction action is equivalent to a demand for the
rent. In such an action, unless the landlord has also sought
to evict the tenant by alleging a material violation of the
lease under section 504B.285, subdivision 5, the tenant may,
at any time before possession has been delivered, redeem the
tenancy and be restored to possession by paying to the
landlord or bringing to court the amount of the rent that is
in arrears, with interest, costs of the action, and an
attorney's fee not to exceed $5, and by performing any other
covenants of the lease.
(b) If the tenant has paid to the landlord or brought into
court the amount of rent in arrears but is unable to pay the
interest, costs of the action, and attorney's fees required
by paragraph (a), the court may permit the tenant to pay
these amounts into court and be restored to possession
within the same period of time, if any, for which the court
stays the issuance of the order to vacate under
section 504B.345.
(c) Prior to or after commencement of an action to recover
possession for nonpayment of rent, the parties may agree
only in writing that partial payment of rent in arrears
which is accepted by the landlord prior to issuance of the
order granting restitution of the premises pursuant to
section 504B.345 may be applied to the balance due and does
not waive the landlord's action to recover possession of the
premises for nonpayment of rent.
(d) Rental payments under this subdivision must first be
applied to rent claimed as due in the complaint from prior
rental periods before applying any payment toward rent
claimed in the complaint for the current rental period,
unless the court finds that under the circumstances the
claim for rent from prior rental periods has been waived.
Subd. 2. Lease greater than 20 years. (a) If the lease
under which an action is brought under subdivision 1 is for
a term of more than 20 years, the action may not begin until
the landlord serves a written notice on the tenant and on
all creditors with legal or equitable recorded liens on the
property. The notice must state: (1) the lease will be
canceled unless the amounts, agreements, and legal
obligations in default are paid or performed within 30 days,
or a longer specified period; and (2) if the amounts,
agreements, and legal obligations are not paid or performed
within that period, then the landlord may evict the tenant
at the expiration of the period.
(b) If the lease provides that the landlord must give more
than the 30 days' notice provided in paragraph (a), then
notice must be the same as that provided in the lease.
(c) The tenant may be restored to possession of the property
under the terms of the original lease if, before the
expiration of six months after the landlord obtains
possession due to the tenant's abandonment or surrender of
the property or the landlord prevails in the action, the
tenant or a creditor holding a legal or equitable lien on
the property: (1) pays to the landlord or brings into court
the amount of rent then in arrears, with interest and the
costs of the action; and (2) performs the other agreements
or legal obligations that are in default.
Subd. 3. Recording of eviction or ejectment actions.
Upon recovery of possession by the landlord in the action, a
certified copy of the judgment shall, upon presentation, be
recorded in the office of the county recorder of the county
where the land is situated if unregistered land or in the
office of the registrar of titles of the county if
registered land and upon recovery of possession by the
landlord by abandonment or surrender by the tenant an
affidavit by the landlord or the landlord's attorney setting
forth the fact shall be recorded in a like manner and the
recorded certified copy of the judgment or the recorded
affidavit shall be prima facie evidence of the facts stated
therein in reference to the recovery of possession by the
landlord.
Section 1. Minnesota Statutes 2008, section 504B.285, subdivision 1, is
amended to read: Subdivision 1. Grounds. The person entitled to the premises
may recover possession by eviction when:
(1) any person holds over real property:
(i) after a sale of the property on an execution or judgment; or
(ii) after the expiration of the time for redemption on foreclosure of a
mortgage, or after termination of contract to convey the property, provided
that if the person holding the real property after the expiration of the time
for redemption or termination was a tenant during the redemption or
termination period, under a lease of any duration and the lease began after the date the mortgage or contract for deed was executed but prior to the expiration of the time for redemption or termination, and the person has received:
(A) at least two months' written notice to vacate no sooner than one month
after the expiration of the time for redemption or termination, provided that
the tenant pays the rent and abides by all terms of the lease; or
(B) at least two months' written notice to vacate no later than the date
of the expiration of the time for redemption or termination, which notice
shall also state that the sender will hold the tenant harmless for breaching
the lease by vacating the premises if the mortgage is redeemed or the
contract is reinstated;
(2) any person holds over real property after termination of the time for
which it is demised or leased to that person or to the persons under whom
that person holds possession, contrary to the conditions or covenants of the
lease or agreement under which that person holds, or after any rent becomes
due according to the terms of such lease or agreement; or
(3) any tenant at will holds over after the termination of the tenancy by
notice to quit.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.