There are many reasons that people may wish to break their commercial leases before scheduled termination dates. For example, a business may wish to cancel a lease because their business is closing or moving to another location, and they do not want to pay for the rest of the lease term. Further, a landlord may wish to break a lease because the tenant is not using it for commercial purposes.

A commercial lease in Maryland might include a specific clause that provides parties with options for termination. However, if no such clause exists, then the process for breaking the commercial lease becomes more complex. When seeking to cancel a commercial lease, you must thoroughly analyze your lease agreement to determine the proper course of action.

Get help from our experienced Maryland real estate lawyers by calling the Heyman Law Firm today at (410) 305-9287.

Terminating a Commercial Lease in Maryland

There are multiple ways you may be able to cancel your commercial lease in Maryland. Guidance from our Maryland real estate attorneys can be very helpful when reviewing your case and analyzing the legal options available to you.

First, your commercial lease may contain a clause that provides you with a process for early termination. This usually comes with fees and expenses to help the commercial landlord recover the cost of renovating, advertising, and reletting the space, along with a fee to cover the fact that they will be going without rents during the time the property is vacant.

If there is no termination clause, there may be other clauses like a force majeure clause, but being able to rely on this is quite rare and only applies to drastic, dire, unforeseen situations.

Second, you can try to negotiate with your landlord. Your business and your landlord can draw up a new agreement detailing how fees and penalties will be paid, when you will vacate, etc. However, if the commercial lease has no termination clause from the beginning, your landlord might be unwilling to negotiate unless it will be financially advantageous for them.

For many commercial landlords, the opportunity to turn over the commercial unit to a new renter might mean they can charge higher rents than what you were locked into with your old rent. As such, it might be a good business prospect for both sides, allowing quick negotiation and settlement.

On the landlord’s side, early termination of a lease often relies on terms that are already written into the lease agreement. For example, there might be a commercial purpose requirement in the lease, stating that the tenant must be using it for commercial purposes or else face eviction. Landlords often have to take such measures when they find out that tenants have been living in their stores or failing to kick out squatters.

What is a Termination Clause in a Commercial Lease in Maryland?

Commercial leases may include provisions that dictate how early termination will work. These clauses describe the conditions under which a party can terminate their lease agreement, what penalties they pay, deposits that will not be returned, etc.

If you are seeking to terminate your commercial lease, you should thoroughly review your lease document to analyze any such clauses and review their implications. Your lease may outline various conditions that must be satisfied for termination, such as advance notice and termination fees.

Our attorneys can also help you negotiate a termination clause into your commercial lease. Before you sign your business up for years locked into a commercial lease, consider putting an escape clause into the lease agreement from the outset.

Do You Need to Provide Notice of Your Intent to Terminate a Commercial Lease in Maryland?

In order to terminate your commercial lease, you will most likely have to provide the other party to your lease with written notice. Your lease agreement should outline any specific requirements for notice. A notice period of 30 to 90 days is common for commercial leases, but your lease will state the specific rules for your situation.

Our attorneys can help you draft a letter explaining your intent to terminate the lease, introduce any offers to settle the termination amicably, and ensure that it is delivered properly to meet the lease agreement’s requirements.

Should You Speak with Your Landlord Before Terminating a Commercial Lease in Maryland?

You should never talk to your landlord about terminating your lease before speaking with a lawyer. Landlords might hear that you want to get out of your lease and do anything they can to terminate from their end first before you get a chance to negotiate or remove yourself from the lease. This could put them in a stronger bargaining position and make it harder to successfully terminate the lease on your terms.

The Legal Consequences for Breaching a Commercial Lease Agreement in Maryland

If you do not follow appropriate procedures when terminating your commercial lease, you can face legal consequences. Landlords can often pursue damages, withhold deposits, claim unpaid rent, and charge you for other expenses such as cleaning and removal of items from the premises.

On the other hand, if a landlord terminates a lease agreement without justification or without adhering to their contractual obligations in the lease, then the commercial tenant may have legal recourse.

No matter which side of the issue you are on, our attorneys can examine your situation, look over the rental agreement, and help you seek or defend against the legal fallout of a lease termination.

Can a Tenant Break a Commercial Lease in Maryland if Their Landlord Does Not Maintain Their Property?

As a tenant, you may be able to break your commercial lease in Maryland if your landlord did not properly take care of their property. However, your ability to terminate the agreement will depend on the specific circumstances of your case and how much of a hardship the landlord’s lack of maintenance and repairs causes your business.

If You Need Help Terminating Your Commercial Lease in Maryland, Call Our Law Firm Today

Seek guidance and support from our experienced Maryland real estate attorneys at the Heyman Law Firm by dialing (410) 305-9287.