Maab owns a small pet shop.He carries on business in commercial premises he leases from his landlord,Susan.Due to a downturn in the local economy,Maab fails to pay his rent for three months.Susan takes the appropriate steps to re-enter the premises,thereby terminating the tenancy and evicting Maab for failure to pay rent.Maab was unable to remove all of his assets from the premises before the eviction.He has a large aquarium with thousands of dollars of exotic fish that Susan has now threatened to sell and apply the proceeds to the outstanding rent arrears.Is she legally entitled to do so?
A)Yes,because Maab failed to remove all of his assets prior to the re-entry and eviction.
B)No,because a commercial landlord is never entitled to sell assets owned by a tenant.
C)Yes,because the landlord has a general right to seize assets of the tenant found on the premises and sell them to recover arrears of rent.
D)No,because the landlord is not permitted to terminate the tenancy thereby removing the tenant and subsequently exercise a right of distress.
E)Yes,because Susan is not a residential landlord.

Question

Quizplus · Accepted Answer

The correct answer is D because, under most jurisdictions, once a landlord has terminated the tenancy and evicted the tenant, they lose the right to exercise distress (the right to seize and sell the tenant's property to recover owed rent). The act of eviction and termination of the tenancy ends the landlord's right to seize and sell the tenant's assets for rent arrears.

Maab Owns a Small Pet Shop