Recapture Notice Law and Legal Definition
In landlord-tenant law, a recapture notice is a notice provided by the landlord to void a tenant’s lease for all, or a portion, of the premises in order to prevent a sublease or assignment. A return or abatement of excess payments is typically required to be made upon recapture. It may also refer to a tenant informing a subtenant of their intent to recapture the subleased space. The following is an example of a clause in a lease dealing with recapture notice:
"Tenant agrees that it shall not withhold or delay its consent to a subletting of all or any portion of the Space (the “Proposed Subleased Space”) provided that the Landlord shall consent to such subletting. Notwithstanding the foregoing, Tenant shall have the right to recapture the Proposed Subleased Space by giving Subtenant written notice of its intent to do so (the “Recapture Notice”). In the event Tenant exercises its right to recapture the Proposed Subleased Space, effective ten (10) days following delivery of the Recapture Notice to Subtenant the Space and the Rental due hereunder shall be reduced accordingly. If Tenant does not elect to recapture the Space, upon the request of the Subtenant, Tenant, at Subtenant’s sole cost and expense, shall request the consent of the Landlord and reasonably cooperate with Subtenant in obtaining any consent. Pursuant to Article 21.B of the Prime Lease, in the event the Sublease is assigned or the Space is sublet, any excess rent shall be allocated such that Landlord shall receive 50% and Tenant and Subtenant shall each receive 25% of such excess. For purposes of the foregoing, excess rents shall be calculated in the manner set forth in the Prime Lease. There shall be no subleasing within the last eighteen months of the Sublease term."