CRE glossary
Default and cure period
Default is when a tenant breaches the lease, usually by missing rent, but also by violating use restrictions, failing to maintain insurance, or other obligations. The cure period is the time the landlord must give the tenant to fix the breach before pursuing remedies (eviction, lease termination, or damages). Standard cure periods are 5–10 days for monetary defaults and 30 days for non-monetary defaults.
Monetary defaults (unpaid rent) trigger a notice period, typically 5–10 business days from written notice, to cure by paying. If the tenant pays within the cure period, the default is cleared and the lease continues. If not, the landlord can pursue eviction, termination, or damages depending on the lease terms.
Non-monetary defaults (insurance lapses, use violations, late report submissions) typically have longer cure periods, 30 days is standard. Tenant-friendly drafting requires the landlord to specify the breach in writing and gives the tenant 30 days to cure or 'commence and diligently pursue' a cure for issues that take longer to fix (e.g., construction defects).
Cross-default clauses extend default consequences across related leases. A tenant with three locations in the same landlord's portfolio can find that defaulting on one triggers default on all three. Push back hard against cross-default at LOI; tenant-rep brokers should never accept cross-default in multi-location leases.
Example
- Monetary default
- Rent unpaid by the 5th of the month
- Cure period
- 5–10 business days from written notice
- Non-monetary default
- Insurance certificate lapsed
- Cure period
- 30 days from written notice
- Repeated defaults
- Three monetary defaults in 12 months may waive future cure periods
Broker perspective
Cure periods are easy to overlook at LOI but disproportionately important when something goes wrong. Negotiate at minimum: 10 business days for monetary defaults (not 5), 30 days for non-monetary, written notice required, and the right to cure during any pending dispute. Without these, a single missed payment can trigger lease termination.
Frequently asked
People also ask
What's a 'cure period'?
Time the tenant has after written default notice to fix the breach. 5–10 business days for monetary; 30 days for non-monetary.
Can the landlord skip the cure period?
No, almost never. Skipping required cure periods invalidates the eviction process. Even bad tenants are entitled to notice.
What's a cross-default clause?
Default on one lease triggers default on related leases (same tenant, multiple locations). Negotiate this out at LOI.
Can repeated defaults waive future cure?
Sometimes, leases can require strict compliance after a defined number of prior defaults. Push back at LOI to limit.
Related terms
Good guy guaranty
A limited personal guaranty that protects the landlord against unpaid rent only if the tenant doesn't surrender the space cleanly.
Letter of credit (LOC)
Bank-issued guarantee of rent payment, used in lieu of cash security deposit, especially for credit-light tenants.
Force majeure
Suspends performance obligations during unforeseeable events outside either party's control, pandemics, natural disasters, government orders.
Holdover
When the tenant stays past lease expiration without a new agreement, usually triggers a steep rent premium (150–200% of base rent).
See default and cure period extracted from a real lease.
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