Automatic Renewal Clause

[BullishBil]

My question involves landlord-tenant law in the State of: California.

I have a business lease in San Diego for a 1 year term that expires on Oct 14, 2008. I just recently sent a 30-days notice to the landlord, and the landlord pointed out that the lease has an automatic renewal clause for the same term (1 year) unless terminated by 60 days notice under the terms and conditions that is attached to the lease. I reviewed the contract and notice that it is in the 1st page of the terms and conditions, but I did not put my initial on it and my signature is on the 2nd page. I am very surprised because I thought the landlord should send a notice for renewal, or when the lease expire on Oct 14, 2008, it should turn into a month to month.

I did some research and found out that the California Civil Code 1945.5 stated that the automatic renewal clause need to have specific format and also placed above the signature line. Moreover, under Civil Code 1945, the agreement should turn into a monthly tenancy when yo continued in possession after the lease term, with the landlord accepting the rent.

Is the automatic renewal clause placed by the landlord legally binding? Any advise is greatly appreciated.

Thanks!

[LawResearcherMissy]

Is the automatic renewal clause placed by the landlord legally binding?

Possibly not, if it does not conform to the format set forth in the statutes.

The argument can also be made, however, that it is incumbent upon you to read and understand the entirety of your lease agreement prior to signing it, and to periodically review the terms of your lease throughout your tenancy.

You'd do well to consult with an attorney prior to taking any further action. First consultation is usually free.