Lease Contracts - The Meaning of Joint and Several

Home
>
Leases & Leasing
>
Lease Contracts - The Meaning of Joint and Several

Lease Contracts - The Meaning of Joint and Several

When you see the phrase "joint and several" in a legal document or contract it means that that the parties on one side of the agreement are responsible individually and collectively for the terms of the agreement.

Example: In the case of two tenants signing a lease agreement, "joint" means they are jointly responsible for the rent.

"Several" means that their joint relationship is severed.

In a contract it indicates that they have agreed that they are also responsible individually for the rent. If one does not pay his/her share of the rent the other is responsible for the entire amount.

Here's an example of a landlord who had a "joint and several" lease with the added provision that tenants must pay rent with a check, money order or cashier's check in the full amount every month.

Landlord allowed the two roommates to pay half the rent each month with two separate checks. Bad policy.

It not only creates accounting problems... but if one tenant pays on time and the other is late how do you handle the late penalty? And...

If you accept payment from one tenant and the other tenant fails to pay have you risked having accepted a partial rent payment and then not be able to evict?

Here's the good news. If you have in your lease a "non-waiver" provision it indicates that even if you allowed lease violations in the past you can at any time demand that tenants comply with the terms of the lease.

If the tenants continue to pay with two separate checks you can return the checks and give "notice for failure to pay rent".

If they then fail to provide you with a single check for the full amount of the rent you can file a forcible detainer action (eviction).

What if tenant #1 pleads that tenant #2 has moved from the property and tenant #1 should only be required to pay their own half of the rent?

Show them "joint and several" in your lease agreement and explain that tenant #1 is now responsible for the entire amount of rent.

Explain that tenant #1 can seek recovery of the other half from tenant #2 in small claims court.

If you rent property to more than one tenant be sure your lease has "joint and several" and "non-waiver" clauses.

Carefully explain each to every new tenant.

About The Author

Mark Walters is a real estate investor and author. His published works can be found at his web site: http://www.CashFlowInstitute.com

In The News:

GlobeSt.com
House Representatives Warn FASB About Lease Accounting
GlobeSt.com
WASHINGTON, DC-The ongoing--and now seriously delayed—efforts by the International Accounting Standards Board and its US equivalent, the Financial Accounting Standards Board, to converge lease accounting standards has caught the attention of two ...
Sherman and Campbell Lead Effort To Stop New Accounting Rules For LeasesVan Nuys News Press
Congressmen Urge FASB to Reconsider Lease Accounting ChangesAccounting Today

all 7 news articles »

Spinnaker Thriving in a Slow Economy With Major Lease Deals in Connecticut and ...
Virtual-Strategy Magazine
1.4 Million SF of Space Leased Since Real Estate Correction Including Major Deals with NBC Sports, Chelsea Piers, Gartner Inc. and WWE Despite a sluggish economy and a slowly improving commercial real estate leasing market, Spinnaker Real Estate ...

and more »

Ventas Announces New Lease with Kindred
MarketWatch (press release)
The new LTAC Lease covers all ten LTACs whose lease term is currently scheduled to expire on April 30, 2013. The new LTAC Lease has an initial term of ten years and contains annual CPI-based escalations ranging from zero to 4 percent.
Senior Housing Finance Activity: HFF, Ventas, Oak Grove Capital, & MoreSenior Housing News

all 10 news articles »

Swapalease.com Honors American Heroes with Deep Discounts for Memorial Day
MarketWatch (press release)
But how about a sale that could help you swap your current lease for another summertime symbol - such as a snazzy new-to-you convertible? Beginning this Friday, May 25, Swapalease.com will help American veterans do just that with their first Memorial ...
Drivers sticking close to Home Memorial Day WeekendTravel Daily News International

all 10 news articles »

Rogers asks BLM to delay lease auction of forest land
Anniston Star
Mike Rogers, R-Saks, Thursday asked the federal Bureau of Land Management to halt plans to lease 43000 acres of national forest land in Alabama for potential oil and natural gas drilling. Rogers said Thursday following a Calhoun County Commission ...

FDIC Signs Lease In Lakecrest
Memphis Daily News
By Sarah Baker Federal Deposit Insurance Corp. has inked a substantial lease in Lakecrest III, marking the market's largest office lease signing this year. FDIC has leased 32306 square feet in Lakecrest III, 6060 E. Primacy Parkway.

and more »

Anytime Fitness Signs Lease for a New Club at Chandler Plaza in Chandler, Arizona
Sacramento Bee
For leasing information, please call (310) 717-6932 or visit http://www.officespacechandleraz.com/. This press release was issued through eReleases® Press Release Distribution. For more information, visit http://www.ereleases.com.

and more »

The Hindu
SC stays quashing of lease of Jal Mahal to private firm
The Hindu
The Supreme Court on Friday stayed the Rajasthan High Court order cancelling the lease of 100-acre land having historical Jal Mahal and Man Sagar Lake in Jaipur to a private firm to develop as a tourist resort. A bench of justices Deepak Verma and SJ ...
SC stays quashing of lease of Jal Mahal to pvt firmIBNLive.com

all 15 news articles »

Ventas Announces New Lease With Kindred
TheStreet.com (press release)
By Business Wire 05/24/12 - 07:35 AM EDT Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) said today that it and Kindred Healthcare, Inc. (NYSE: KND) (“Kindred”) have entered into a new lease (the “new LTAC Lease”) for ten long-term acute care ...

Don't lease this land
Times Daily
The National Park Serves could lease 43000 acres of Talladega National Forest to oil and gas companies for exploration. If oil or natural gas is found there, the controversial technique of hydraulic fracturing — or fracking — could be used to extract ...
Citizens say no to leasing forest landDaily Home Online
Activists, lawmakers jump into fracking debateThe Piedmont Journal

all 5 news articles »

Google News