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Real Estate vocabulary · Commercial Real Estate

Break clause

Meaning in real estate, with examples

nounAdvanced term

In real estate, break clause means: A term in a lease that lets the landlord, the tenant or both end the lease early on a set date, usually after giving notice.

In Turkish: erken fesih maddesi, fesih opsiyonu

How it is used

British English, common in commercial and longer residential leases, such as a ten-year lease with a break at year five. Tenants exercise a break, and conditions such as paying all rent must usually be met exactly. American English often says early termination clause.

Example sentences

  1. The lease runs for ten years, with a break clause after year five.

  2. We want to use the break clause and move to a bigger office.

Common collocations

  • exercise a break clause
  • tenant-only break clause
  • break date
  • break notice
  • leaseA legal contract in which an owner lets a tenant use a property for a fixed period in return for rent, setting out the rights and duties of both sides.
  • notice periodThe amount of time a landlord or tenant must warn the other side in advance before ending a lease, such as one or two months.
  • office spaceRooms or floors in a building used or available for office work, usually leased to companies by the square foot or square metre.
  • commercial real estateProperty used for business rather than as a home, such as offices, shops, warehouses, hotels and factories.

More terms: Commercial Real Estate

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