Joint and several 'liability' clause

Joint and several 'liability' clause

Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes

@steve babiak mentioned the joint and several clause in another post and it seemed like a good topic to discuss.

if you don't have this clause in your lease I would strongly recommend it. Here is a definition for tenants. If an agreement states that you and your roommate(s) are "jointly and severally liable," it's confirming that you're individually and collectively liable for the entire rent. In the event that your roommate(s) fail(s) to pay, you can be held responsible for his/her portion of the rent. This "joint and several" liability continues throughout the stated life of the contract.

An example from landlordology - Each Tenant(s) is jointly and severally liable for all Lease Agreement obligations. If any Tenant(s), guests, or occupant violates the Lease Agreement, all Tenant(s) are considered to have violated the Lease Agreement. Landlord’s requests and notices to any one Tenant(s) constitute notice to all Tenant(s) and occupants. Notices and requests from any one Tenant(s) or occupant (including repair requests and entry permissions) constitute notice from all Tenant(s). In eviction suits, each Tenant(s) is considered the agent of all other Tenants in the Premise for service of process. A notice to vacate must be signed by all Tenant(s) or it will not be considered valid.

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  • Roy N.Pro Member
    Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
    12y

    @Cal C.

    This is typically the default in any contract where there are multiple "contractees" unless the obligation is specifically apportioned.

    If you and your best friend were to lease a truck together, both signing the agreement, you would be jointly and severally liable for the entire loan. Same with a mortgage, a cable subscription, etc.

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    12y

    Mostly all good, notices required are governed by state law and may not have any requirement to notify each individually, nor do tenants need to sign a notice as provisions for service are by statute. Usually, posting on the door will do or delivery to any adult occupant. Another note, a creditor is not required to hold any particular party jointly or severally liable, they may be selective to enforcement in a combination taking the least path of resistance. :)

  • Rental Property Investor · Louisville, KY · Member since 2008 · 342 posts · 123 votes
    12y

    I agree, and make sure that actual wording Jointly and severally is included in the lease and further forms or addendum that you have the tenant sign. Very little effort to make sure it has a better chance of holding up in court if one tenant says they didn't agree to blah blah.

  • Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes
    12y

    good point about adding to the addendum

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