Warning
Info
Warning
Info
Simple English definitions for legal terms
notice of default
Read a random definition: urban-survival syndrome
A quick definition of notice of default:
A notice of default is a warning that someone is not following the rules of an agreement. It is like a teacher telling a student that they are not doing their homework and will get in trouble if they don't start doing it. In renting, a notice of default can be sent to a tenant who has not paid their rent or fees, and it tells them they cannot use their storage space until they pay what they owe. In mortgages, a notice of default is sent to a borrower who has not been making their payments, and it tells them that the lender will sell their house if they don't start paying again.
A more thorough explanation:
A notice of default is a formal statement sent by one party to another to inform them that they have failed to fulfill the terms of an agreement and legal action will follow if they continue to default.
In a rental agreement, if a tenant fails to pay rent or other charges, the landlord can send a notice of default to deny the tenant's right of access to the storage space. The notice should include the amount owed, the date it became due, and the landlord's contact information. The tenant's right to use the storage space will be denied until all sums due are paid.
In mortgage foreclosure, a lender files a notice of default with the courts to notify the borrower who has failed to make payments that the lender intends to conduct a sale foreclosure. The notice should include information about the borrower and mortgage loan and actions the lender will take.
These examples illustrate how a notice of default is used to inform someone that they have failed to fulfill their obligations and legal action will follow if they do not rectify the situation.