3-Day Notice to Perform Covenant (Cure) or Quit
(Commercial) (CA)
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Summary
This 3-day notice to perform covenant (cure) or quit may be used by a landlord in California to notify a commercial tenant that if it does not cure a default (other than a non-rental payment default) or vacate the leased premises within three days, the landlord will bring an unlawful detainer action to evict the commercial tenant. This template includes practical guidance and drafting notes. This template may be used in connection with a commercial tenancy. Before a landlord in California can begin an eviction action based on a lease default (other than the failure to pay rent) under Cal. Civ. Proc. Code § 1161(3), the landlord must provide the tenant with a 3-day notice informing the tenant that if it does not cure the default or vacate the premises within three days, the landlord will bring an eviction proceeding. The notice must strictly comply with the requirements in Cal. Civ. Proc. Code § 1161(3), be in writing, and state: • What the tenant did to violate the lease or rental agreement—and— • That the tenant has a chance to fix the problem or move out in three days Cal. Civ. Proc. Code § 1161(3); Haydell v. Silva, 201 Cal. App. 2d 20. The alleged breach must also be substantial and not merely technical. McCarty v. Raso, 102 Cal. App. 2d 909, 910 (1951); Boston LLC v. Juarez, 245 Cal. App. 4th 75, (2016). The notice should identify precisely how the tenant violated the lease, including reference to any applicable section(s) of the agreement and a factual basis for the violation. The notice should also state the following: • The full name(s) of the tenant(s)–and– • The address of the rental property The notice must be served on the tenant and any subtenants in actual occupation of the property. Cal. Civ. Proc. Code § 1161(2). The notice may be served by: (1) Delivering a copy to the tenant personally (personal service method); (2) Leaving a copy with someone of suitable age and discretion at the property and mailing a copy to the tenant at the property, if the tenant is absent from the property (substituted service method); or (3) Affixing a copy in a conspicuous place on the property and mailing a copy to the tenant at the property, if at the time of service, a person of suitable age or discretion cannot be found (posting and mailing method). A subtenant may be served in the same manner. Cal. Civ. Proc. Code § 1162(b). Saturdays, Sundays, and court holidays do not count toward the period listed on the notice to perform covenant (cure) or quit. Cal. Gov. Code § 6700; Cal. Civ. Proc. Code §§ 10, 12a, and 135. The notice may be served by the landlord or anyone at least 18 years old. As tenants sometimes claim they were not served (or properly served) the notice to perform covenant (cure) or quit, landlords should consider using a professional server to serve the notice. This method establishes a presumption, affecting the burden of producing evidence for the landlord's unlawful detainer action, of the facts stated in the process server's return of service. Cal. Evid. Code § 647. Note: Starting January 1, 2025, small businesses that meet the criteria of a ''qualified commercial tenant'' are provided additional tenant rights (e.g., 90-day rent increase notice, 60-day termination notice, restrictions on charging building operating costs, and translated copy of the lease in required languages). See Cal. Civ. Code §§ 827, 1946.1, 1950.9, and 1632. Pursuant to Cal. Civ. Code § 1950.9, landlords may not charge ''qualified commercial tenants'' a fee to recover building operating costs unless certain conditions are met (e.g. specific proportionality allocation of the building operating costs, building operating costs were incurred within the previous 18 months, and the landlord provided notice prior to the execution of the lease that the qualified commercial tenant may inspect any supporting documents of building operating costs upon written request). See Cal. Civ. Code § 1950.9 for all conditions that must be met for landlords to charge ''qualified commercial tenants'' a fee to recover building operating costs. For a template of a proof of service, see Proof of Service of 3-Day Notice (Commercial) (CA). For a notice for use when the commercial tenant has defaulted on the rent, see 3-Day Notice to Pay Rent or Quit (Commercial) (CA). For a notice for use when the commercial tenant has violated a lease provision that is non-curable or when the tenant has engaged in illegal activity, see 3-Day Notice to Quit (Commercial) (CA). For further guidance see Commercial Eviction (CA).