Notice of Termination of Right of Possession
(Commercial Eviction) (TX)

This Notice of Termination of Right of Possession may be used by a landlord in Texas to terminate a commercial tenant's right to possession of its leased premises because the tenant has failed to pay rent. This template contains practical guidance and drafting notes. Most (though not all) commercial leases in Texas written notice of a rent default and a time period (e.g., 10 days, 30 days, etc.) for cure. If, after the landlord provides the tenant with any required default notices, the tenant fails to pay its past due rent, the landlord can send the tenant a notice of termination of the tenant's right to possession. This lays the groundwork for a tenant lockout. In drafting the notice of termination of possession, it is important to state that the landlord is terminating the tenant's right of possession but not the lease itself. If the landlord terminates the lease or declares the lease forfeited, the tenant's liability for future rent may be cut off, reducing the landlord's future damages claim under the lease, which may have significant time remaining on the term at the point of the tenant's default. See Austin Hill Country Realty, Inc., 948 S.W.2d 293, 300 (Tex. 1997). Repossessing the premises and terminating the tenant's right of possession (without terminating the lease) works to preserve the landlord's claim to future rentals under the lease, and may be the preferred course, depending on the situation and the terms of the lease. For further guidance on commercial evictions in Texas see Commercial Eviction (TX). For a notice of default see Notice of Default (Commercial Eviction) (TX).