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Hi - would love some help on this. I've been at a building for 17 years which is an executive style. I signed a 1 year lease 7 years ago and thought after the lease was up it became a month to month since nothing was said (big mistake on my end). I went to give my 30 days and my landlord said I'm liable until Oct 31st as I have an automatic renewal in my lease. First I've ever even heard of this type of lease.
I'm in California and I'm reading that he has to give notice each year that it's renewing but I'm getting mixed information if that is applied to commercial leases.
Does anyone have any advice on this? Is there an online less expensive lawyer I can ask?
Thank you for the help
below is the clause
10. RENEWAL/NOTICE REQUIREMENT. UNLESS CANCELLED AS PROVIDED BELOW, THIS AGREEMENT WILL AUTOMATICALLY RENEW FOR THESAME PERIOD OF TIME AS THE INITIAL TERM WITH A 6% INCREASE FOR THE OFFICE(S) ANO/OR SERVICES.THE RENT SHALL BE INCREASED BY 6% EVERY 12 MONTH PERIOD. IF YOU HAVE
LESS THAN 3 OFFICES, YOU MUST GIVE WRITTEN NOTICE 60 DAYS PRIOR TO THE DATE YOUR AGREEMENT IS SCHEDULED TO TERMINATE IN ORDER TO CANCEL YOUR RENEWAL. IF YOU HAVE 3 OFFICES OR MORE, YOU MUST GIVE WRITTEN NOTICE 90 DAYS PRIOR TO THE DATE YOUR AGREEMENT IS SCHEDULED TO TERMINATE IN ORDER TO CANCEL YOUR RENEWAL. SUCH NOTICE MUST ONLY BE DELIVERED ON THE FIRST DAY OF ANY GIVEN MONTH. IF SUCH NOTICE IS DELIVERED ON ANY
OTHER DAY, IT SHALL BE DEEMED TO HAVE BEEN DELIVERED ON THE FIRST DAY OF THE FOLLOWING MONTH. NOTWITHSTANDING THE FOREGOING, IRVINE RANCH Executive Suites MAY TERMINATE THIS AGREEMENT AFTER EXPIRATION OF THE INITIAL T M FOR ANY REASON WITH 30 DAYS NOTICE TO YOU. BY INITIALING IN
THE PLACE PROVIDED BELOW, YOU HEREBY ACKNOWLEDGE YOUR AGREEMENT TO THE ENEWAL PROVISIONS OF THIS SECTION 11.
If that is the provision of the lease you initially signed and you did not give notification in the manner described in the lease and you have paid the increase amount as stated in the auto renewal section, YES, you are bound to the auto renewal and your commercial lease did renew as described it the original lease. The legality of the renewal can be found in Adv. Corp. v. Wikman (1986) 178 Cal. App. 3d 61
Thank you Rabrrita for the reply. What about The Automatic Renewal Law (ARL) in California is governed by California Business and Professions Code (Cal. Bus. & Prof. Code), specifically Section 17600123. This law regulates automatic renewal provisions in contracts, including leases, and aims to ensure transparency and consumer protection.
From what I'm reading in 2022 this updated law says that the landlord needs to send notice 15-45 days before it auto-renews to help protect the end user and so they understand it's being renewed. From what I'm seeing this was updated in 2022 but I can determine if it applies or not.
I’m not knowledgeable in this area, but just reading these quoted segments one thing strikes me.
The leasor must notify he is NOT renewing 60 days in advance of the automatic renewal yet the landlord is only required to send a reminder 15-45 days ahead of time.
Thank you Rabrrita for the reply. What about The Automatic Renewal Law (ARL) in California is governed by California Business and Professions Code (Cal. Bus. & Prof. Code), specifically Section 17600123. This law regulates automatic renewal provisions in contracts, including leases, and aims to ensure transparency and consumer protection.
From what I'm reading in 2022 this updated law says that the landlord needs to send notice 15-45 days before it auto-renews to help protect the end user and so they understand it's being renewed. From what I'm seeing this was updated in 2022 but I can determine if it applies or not.
ARL applies to consumer auto renewals such as if you have a magazine subscription, or a vitamin package, or ED pills, or an alarm monitoring contract, or a phone plan, or vehicle service contract, (see the pattern?) and you don't cancel by X date it auto renews for another term. The burden is now on the service provider to make proper notification. Commercial property leases are not covered by that regulation.
To add: commercial leases do not auto renew unless it's stated in the lease and if the terms of that auto renew is enacted. That's why I asked if you actually paid the increase.
yes we paid the increase as the invoices always just get updated with the increase and we have always paid it. Yes looking at this lease it seems a little slimy that he can kick me out with 30 days notice but I'm stuck in a continual year lease without acknowledging it.
ok so bottom line it sounds like I'm stuck paying double rent (rent for me new location and keep paying my old office) until we can find a sublease. Is that correct?
Any use getting a lawyer to see if we can break it or will that be a waste of money?
Thank you for the help on this...even though it's bad news
I’m not knowledgeable in this area, but just reading these quoted segments one thing strikes me.
The leasor must notify he is NOT renewing 60 days in advance of the automatic renewal yet the landlord is only required to send a reminder 15-45 days ahead of time.
Can't hurt to contact a lawyer especially if Cali law requires a notice to be sent prior to auto renewal.
He could be better off talking to a Lessor and negotiating a buy out of lease
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