Death or Disability Clause
(Lease for Medical Use)

Summary

This death or disability clause permits a medical use tenant to assign its rights under a lease or terminate the lease upon the death or disability of a designated principal. Optional language providing for a termination fee is included if early termination is likely to cause substantial costs to the landlord. This clause includes practical guidance, drafting notes, and an optional clause. If a medical tenant is a solo practitioner or small practice, it will often ask for this clause allowing it to assign or terminate its lease upon the death or disability of a designated principal. If no assignee is found, the lease terminates. The capitalized terms used in this sample clause should be conformed to the defined terms in the relevant medical use lease. For a list of resources addressing key issues related to healthcare organizations, see Healthcare Transactions, Licensing, and Regulation Resource Kit. For more on medical use clauses in commercial leases, see Commercial Leases for Medical Use