Legal Definitions - pay or quit

A pay or quit notice is a formal written document a landlord delivers to a tenant when the tenant has violated a term of their lease agreement, most commonly by failing to pay rent. This notice serves as a critical initial step in the legal eviction process.

The notice demands that the tenant either rectify the breach—typically by paying the overdue rent—within a specific timeframe (often a few days, as dictated by state law), or vacate the property. If the tenant fails to do either, the landlord can then proceed to file a lawsuit in court to legally evict them.

• Example 1: Residential Tenant Misses Rent

  Sarah rents an apartment and usually pays her rent on time. However, due to an unexpected car repair, she is unable to pay her full rent of $1,500 on the first of the month. After a few days, her landlord, Mr. Henderson, serves her with a pay or quit notice. The notice states that Sarah must pay the overdue $1,500 within three days, or she must vacate the apartment. If she does neither, Mr. Henderson will initiate formal eviction proceedings.

  This example illustrates a common scenario where a tenant fails to pay rent. The notice gives Sarah a clear ultimatum: resolve the financial breach by paying the rent or leave the property, thereby avoiding a legal eviction lawsuit.

• Example 2: Small Business Tenant Defaults on Commercial Lease

  "The Daily Grind," a small coffee shop, leases its commercial space from a property management company. Due to a slow month, the owner, Mark, is unable to pay the $3,000 monthly rent for August. The property management company sends Mark a pay or quit notice, giving him five business days to pay the outstanding rent. The notice explicitly warns that if the rent is not paid and the premises are not vacated within that period, the company will file an eviction lawsuit to regain possession of the commercial unit.

  Here, the term applies to a commercial lease agreement. The notice provides the business owner with a final opportunity to rectify the rent default or face legal action to be removed from the leased commercial property.

• Example 3: Tenant Makes Partial Rent Payment

  David owes $1,200 in rent for his townhouse. On the due date, he only pays $600, promising to pay the rest later. His landlord, Ms. Chen, waits a few days, but the remaining $600 is not paid. Ms. Chen then issues a pay or quit notice, demanding the remaining $600 within a specified period, typically three to five days. The notice clarifies that if the outstanding balance is not paid, David must move out, or Ms. Chen will begin the legal eviction process.

  This example demonstrates that a "pay or quit" notice can be issued even when a partial payment has been made, as long as a significant portion of the rent remains overdue. It still presents David with the choice: pay the remaining balance or vacate the premises to avoid eviction.