Q: We signed a 1yr lease last that ended March 1st this year . We went about purchasing a home and are in the process
Of closing on it . However now our landlord is stating that the lease has an automatic renewal for another year. If that's the case shouldn't we have received a notice prior to the lease ending date allowing us to decline renewal ? And wouldn't we need to sign a new lease?
A: It depends upon the terms of the lease. Such a provision in a lease is probably enforceable. But it is possible that a local law (such as the Ann Arbor landlord-tenant code) could affect the application of the clause.
A: Leases are contracts and the provisions of a contract if signed by both parties, prevail. Early termination clauses, renewal clauses, notice clauses all carry legal weight. Reading and understanding what is in a signed agreement is paramount to entering into not only business relationships, but also the tenant - landlord relationship. Review the agreement, perhaps there is an abatement for you finding another tenant for LL to lease out your unit.
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