THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, April 22, 1995 TAG: 9504200372
SECTION: REAL ESTATE WEEKLY PAGE: 28 EDITION: FINAL
COLUMN: Landlords & Tenants
SOURCE: Albert Teich Jr.
LENGTH: Medium: 72 lines
I am considering renting a four-family apartment owned by a person who apparently takes care of all his rental property by himself. I believe that he even writes his own leases because they are not professionally typed and appear to be homemade.
There is one clause in the lease that bothers me. It states that in the event I become delinquent in my rent and the landlord brings suit against me, he is authorized to confess judgment on my behalf. I do not know what that means.
I certainly do not want to have anyone going around confessing that I have violated the law and, thus, make me a criminal. If that clause remains in the lease, should I sign it?
If you like the property, it is within your price range and you think you can get along with the landlord and the other tenants, I suggest you go ahead and rent the apartment subject to the following:
A confession of judgment clause in any contractor simply allows a creditor or a landlord to file suit against you and immediately have someone come in and confess, on your part, judgment. A judgment would be automatically handed down against you without your even knowing that you had been sued.
Of course, the Virginia law requires him to give you notice after the confession has taken place but a lot of people do not understand their rights in such a case.
I never suggest that anyone sign a contract with a judgment clause in it. I have never liked them, I do not think they are fair and even though there is a provision to get back into court, I think that, basically, this process tends to bewilder debtors and at times they may not be able to adequately represent themselves.
However, in your case this clause is absolutely null and void and cannot be enforced according to the Virginia Landlord and Tenant Act, which says that if a landlord brings a legal action trying to enforce such a clause, that the tenant may recover actual damages sustained and reasonable attorneys' fees.
After you sign the lease, you may want to show your landlord a copy of this article and tell him that his confession clause is no good. Checks forwarded late
An out-of-state realty company is managing the rental (yearly lease) of a single-family house for me. The tenants have until the 7th of the month to pay the rent without penalty.
The realty company holds the collected rents until the end of the month. Thus, the firm has the use of my money for up to 30 days. What are your comments concerning this matter?
I imagine the realty company, after collecting the rent, deposits the check and allows a week for the check to clear the bank and be returned if necessary. If the check is on an out-of-town account, it may take an even longer time.
If it is a local check, the realty firm should be forwarding you money earlier that it's doing. Please check with your agreement with the realty company and see whether it mentions this.
If the only reason the realty firm is holding your money is that it does not write any checks until the end of the month, that is not acceptable in my view and you should inform the firm that if it persists in such conduct without valid cause, then at the end of your listing agreement you will go to another realty company.
A good phone conversation with someone in authority at the firm might be able to settle this matter. MEMO: Albert Teich Jr. is a real estate lawyer based in Norfolk. Send
comments and questions to him at Real Estate Weekly, 150 W. Brambleton
Ave., Norfolk, Va. 23510. by CNB