Legal
Break option
Right to terminate a lease early.
A break option gives the tenant or landlord the right to terminate the lease early at a predetermined point, often with a notice period of six to twelve months. This increases the owner's vacancy risk and is taken into account in the valuation.
See also
Advice on selling or lettingFrequently asked questions about Break option
What does Break option mean?
Right to terminate a lease early.
How does Break option work in commercial real estate?
A break option gives the tenant or landlord the right to terminate the lease early at a predetermined point, often with a notice period of six to twelve months. This increases the owner's vacancy risk and is taken into account in the valuation.
Related terms in legal
ROZ model
Standard commercial lease agreement.
Zoning plan / environmental plan
Permitted use of land and buildings.
Environmental permit
Permit for construction or change of use.
Chain clause
Obligation passed on to a subsequent owner.
Right of superficies
Right to have a structure on someone else's land.
Ground lease for commercial land
Right to use land in return for ground rent.
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