USA – NORTH CAROLINA Law and Practice Contributed by: John Livingston and Brittani Miller, Kilpatrick
expiration or termination of a commercial lease. However, if the tenant remains in possession of the premises beyond the agreed-upon term with - out the landlord’s consent, the tenant becomes a holdover tenant, and the landlord may pursue legal remedies. The lease agreement may spec - ify the consequences of holdover tenancy, such as requiring the tenant to pay a higher rent rate. If the lease does not address holdover tenancy, the landlord may initiate an eviction proceeding to regain possession of the property. To ensure that a tenant leaves on the date origi - nally agreed, the landlord should provide clear notice before the lease term ends, reminding the tenant of the expiration date and their obligation to vacate. 6.18 Right to Assign a Leasehold Interest A tenant’s ability to assign their leasehold interest or sublease all or a portion of the leased premis - es depends on the terms of the lease agreement. Generally, commercial leases require the land - lord’s prior written consent for an assignment or sublease, and the landlord may impose cer - tain conditions on such assignment or sublease including the requirement that the assignee or sublessee meets the landlord’s financial and operational qualifications and agrees to comply with all terms of the original lease. Additional - ly, the tenant may be required to remain liable under the lease, even after the assignment or sublease. Landlords may also impose adminis - trative fees or require indemnification from ten - ant for any damages or costs resulting from the assignment or sublease. 6.19 Right to Terminate a Lease Events that may give a landlord the right to ter - minate a lease include the tenant’s failure to pay rent or other amounts due and owing under the
lease or violations of lease terms. The lease may also include provisions allowing termination for property damage or if the tenant abandons the premises. For tenants, the right to terminate may arise if the landlord breaches material lease obligations, such as failing to provide access or services necessary for the tenant’s use of the property. Additionally, both parties may have the right to terminate under casualty or con - demnation clauses, which address unforeseen events such as natural disasters or governmen - tal actions that render performance impossible. Termination rights may also be tied to bankrupt - cy of either party or mutual agreement to end the lease early. The lease agreement typically outlines the procedures for termination, includ - ing notice requirements, cure periods and any penalties or damages. 6.20 Registration Requirements Leases are not required to comply with regis - tration requirements; however, they must be executed by both the landlord and tenant to be valid. If both parties agree, a memorandum of lease can be recorded in the county where the property is located in order to protect the tenant’s leasehold interest against future pur - chasers of the property. Recording is subject to applicable fees, which are typically paid by the party requesting the recording, along with any A tenant can be forced to leave the leased prem - ises prior to the originally agreed-upon expira - tion date in the event of default, such as failure to pay rent, violation of lease terms or illegal activ - ity. To evict a tenant, the landlord must provide the tenant with proper notice of default and an opportunity to cure the issue if required by the lease agreement. If the tenant does not reme - dy the default, the landlord can file an eviction associated notary fees. 6.21 Forced Eviction
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