Property ManagementIntermediateDelaware Exam

What is 'tenant default' in a Delaware commercial lease?

ASimply a tenant's own personal decision to voluntarily move out before the lease term formally expires, subject to the usual exceptions
BThe tenant's failure to meet lease obligations — including failure to pay rent, violating use restrictions, or abandoning the propertyCorrect
CThe tenant's default on their own business loan
DA default on the property's first mortgage by the tenant

Why The tenant's failure to meet lease obligations — including failure to pay rent, violating use restrictions, or abandoning the property Is Correct

Answer B: The tenant's failure to meet lease obligations — including failure to pay rent, violating use restrictions, or abandoning the property

Tenant default occurs when the tenant fails to meet their obligations under the lease — most commonly failure to pay rent, but also including violation of use restrictions, failure to maintain the premises, or unauthorized subletting.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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