Break Clause – what you need to know

Industry Insight May 5th, 2015
Break Clause – what you need to know

Some Key points to think about when serving a break clause

 

Form and Service of the Notice

The break clause may specify the precise form in which the notice must be served and impose specific requirements as to the method of service. A failure to adhere to mandatory requirements will invalidate the notice.

Tips:

  • Check the names and addresses of the parties (and any care of addresses)
  • Check you have entered the correct dates

Timing

The option to break may arise on one or more specified dates or be exercisable at any time after a specific period of time has elapsed on a “rolling” basis.

Tips:

  • Diarise the break clause date and the notice period required.
  • Allow sufficient time for service.

The tenant must give up vacant possession

The test of vacant possession is more than just about giving up occupation. It means ensuring that all chattels and goods belonging to the tenant are removed, tenant’s fixtures are removed where required by the lease or supplemental documents, keys are returned and no persons of the tenant, are in occupation on the break clause date. In short, the tenant must not do anything that suggests that he is continuing to use the property for himself.

Tips:

  • Ensure an inventory is completed and all keys are returned and the inventory signed

 

Arthuronline makes serving a notice very simple whether on the web or Mobile App

Subscribe to our newsletter to get the latest offers and tips!

Follow us

Like it? Share it!