“Am I required to waive the early termination fee?”
April 24, 2024
*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section.
Q: I have a tenant who works as a contractor for the military and is being relocated for work. He has subsequently requested to terminate his lease without an early termination fee. Does the law require me to waive the early termination fee?
A: No, landlords are not required to waive early termination fees for contractors who work for the military or any other part of the government. The Servicemembers Civil Relief Act (SCRA) prohibits landlords from charging an early termination fee to servicemembers who receive orders to report to a new location. The term “servicemember” is defined as a member of the armed forces, including the Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard. “Servicemember” also includes those who serve in the National Oceanic and Atmospheric Administration and Public Health Service. Being a government contractor, whether working with the military or otherwise, does not on its own satisfy the definition of “servicemember.” As such, government contractors do not receive the protections for servicemembers that are proscribed in the SCRA, including the waiver of early termination fees pursuant orders to relocate.
Have a question about this article? Submit it to the Legal Hotline!
The Legal Hotline is a member benefit that has been supporting members for over 25 years. Our team of lawyers answers your important questions about real estate transactions quickly and accurately (usually within three business hours!).
Here are some tips to help make the Legal Hotline work for you!
You might also like…
“How can I find out what changes are being made to Standard Forms for the upcoming year?
By Santiago Montalvo - December 19, 2024
*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section. Q:… Read More
“What happens if a purchaser receives a Resale Disclosure Certificate in improper form?”
By Sean Olk - December 17, 2024
*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section. Q:… Read More
Corporate Transparency Act on Hold
By Jon Haley - December 16, 2024
UPDATE: The Fifth Circuit Court of Appeals has granted the U.S. government’s request to lift the temporary nationwide injunction that stopped the Corporate Transparency Act (“CTA”) from taking… Read More