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How to deal with Diplomatic Clause with multiple tenants

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multitenant
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How to deal with Diplomatic Clause with multiple tenants

Post by multitenant » Fri, 24 Nov 2017 9:11 pm

Situation is two people signed with equal liability on a Tenancy Agreement:

What happens if one person exercises their diplomatic clause and the other stays?
>Does the person leaving still have liability or do they get released from the tenancy agreement?
>>Or can they only be released if other tenant agrees?

Keen to know how it works...anyone got experience with this?

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Strong Eagle
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Re: How to deal with Diplomatic Clause with multiple tenants

Post by Strong Eagle » Fri, 24 Nov 2017 11:37 pm

If you have not specifically addressed this in the agreement, and you have "equal liability", then you have joint tenants in common which means that either and/or both have responsibility to the landlord.

If the other person has properly executed the terms of the diplomatic clause, then it is an agreement between the landlord and the tenant, not you. Your own agreement also remains in force.

This is why it is essential to have inter-tenant agreements in place for situations such as this.

multitenant
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Re: How to deal with Diplomatic Clause with multiple tenants

Post by multitenant » Sat, 25 Nov 2017 11:15 am

Thanks Strong Eagle

Agreed, we are looking at wording as follows:

“If either tenant exercise the diplomatic clause this tenancy agreement will be terminated and both tenants shall have no liability for further rental payments beyond the scope of what is required by the Diplomatic clause. The tenancy may be continued under an amended Tenancy Agreement if mutually agreed by the tenant NOT exercising the Diplomatic Clause and the landlord”.

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Re: How to deal with Diplomatic Clause with multiple tenants

Post by Strong Eagle » Sat, 25 Nov 2017 10:17 pm

multitenant wrote:Thanks Strong Eagle

Agreed, we are looking at wording as follows:

“If either tenant exercise the diplomatic clause this tenancy agreement will be terminated and both tenants shall have no liability for further rental payments beyond the scope of what is required by the Diplomatic clause. The tenancy may be continued under an amended Tenancy Agreement if mutually agreed by the tenant NOT exercising the Diplomatic Clause and the landlord”.
If I were the landlord, I wouldn't be happy with such a clause, although I can understand your reasoning... and if the husband of a husband/wife team exercised the clause they would both move out. See what the LL says. It's not unreasonable.

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