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Confession of Judgment Provisions In Commercial Leases

By Megan E. Moyer and Kevin M. Levy
June 01, 2021

Wouldn't it be nice to win your client's court case before even filing the complaint? In states where they are enforced, a properly drafted confession of judgment clause in a commercial lease can accomplish just that. The provision can be one of the most valuable tools in a landlord's toolkit for enforcing its leases and preserving its remedies.

A confession of judgment is a legal procedure where, after a commercial tenant defaults under a lease for nonpayment of rent or any other breach under the lease, the landlord can file an action in the local court of common pleas and simultaneously file a "confession of judgment" on behalf of the tenant to forfeit the case. The right to file the confession of judgment stems from language in the body of the lease agreement whereby the tenant, in the event of its default under the lease, voluntarily submits to the jurisdiction of the court and entry of a judgment against the tenant. Simply by filing the confession of judgment, the landlord essentially skips a large chunk of the usually quite lengthy litigation process.

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