USA – ALABAMA Law and Practice Contributed by: Adam J. Sigman, Crystal H. Walls, Nathan Stotser, Katie Sinclair and Courtney Dow, Dentons
considered an asset of the tenant, which is protected by the Bankruptcy Code’s automatic stay. 6.17 Right to Occupy After Termination or Expiry of a Lease Generally, a tenant does not have the right to continue to occupy the leased premises after the expiry or ter - mination of a commercial lease. When a tenancy is for a certain period of time and the term expires under the lease, the tenant is bound to surrender posses - sion without the landlord providing notice to quit or demanding possession (Section 35-9-8). If a landlord has terminated the lease for a breach or default, the landlord must give the tenant notice of termination at least ten days prior to terminating a commercial lease, unless the lease provides for addi - tional time (Section 35-9-6). If the tenant does not deliver possession of the leased premises after demand, as described above, the land - lord may pursue an unlawful detainer action in the district court of the county where the premises are located (Section 6-6-330). The landlord’s complaint must be served on the tenant at least six days before the hearing date (Section 6-6-332). If the district judge rules in favour of the landlord, the court will file a writ of execution, which requires the sheriff to restore the premises to the landlord (Section 6-6-337). The tenant may file an appeal of the judge’s ruling within seven days, and a trial on the appeal is scheduled within 60 days of the date of the appeal (Section 6-6-350). The landlord’s right to possession will not be delayed by a tenant’s appeal, and can only be prevented if the tenant pays all rent payable before the landlord regains possession by a writ of possession (Section 6-6-351). 6.18 Right to Assign a Leasehold Interest Typically, the ability to assign the lease or sublease the premises is restricted to a certain extent in the lease, but a tenant generally has the right to sublease the property or assign the lease without the land - lord’s consent if the lease is silent about subleases and assignments. If the lease requires the landlord’s
consent before subleasing or assigning the lease, the landlord cannot “unreasonably and capriciously” with - hold consent ( Homa-Goff Interiors, Inc v Cowden , 350
So 2d 1035, 1038 (Alabama 1977)). 6.19 Right to Terminate a Lease
In Alabama, provided the remedy is included in the commercial lease, a landlord is typically allowed to terminate the lease for: • failure to pay rent or other amounts due under the lease in a timely manner; • default under the lease (sometimes after a required opportunity to cure); For residential leases in Alabama, by statute, a land - lord may terminate a lease by delivering written notice to the tenant specifying the acts or omissions causing the breach in the following cases: • the tenant’s material non-compliance with the lease; • the tenant’s intentional misrepresentation of a material fact; • the tenant’s material non-compliance with any of their statutory obligations; or • if the tenant does not pay rent when due (Section 35-9A-421 (a) and (b)). • violation of applicable laws; and • other terms specified in the lease. If the breach arises from unpaid rent or other curable breaches, the lease shall terminate within seven busi - ness days of receiving the notice if not remedied by the tenant. Other breaches are not curable, including intentional misrepresentation of a material fact and certain acts on the premises (eg, possession of illegal drugs or criminal assault). See Section 35-9A-421 (a), (b) and (d). 6.20 Registration Requirements If a lease is considered a “conveyance for the aliena - tion of land”, it must be either: • properly acknowledged by an authorised officer (for example, a notary public); or • attested by one witness.
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