Can I Cancel an Overpriced Lease I Just Signed?

By Robert Griswold

Question: I just looked at a place two days ago and then signed the lease a few hours later after much pressure from the Realtor. I signed the lease on the 11th to commence on the 1st of the following month. I have realized that this apartment is too expensive for me and I won't be able to afford it based on my salary. Is there a way to terminate this lease?

Landlords' attorney Smith replies:

At this point, you may not cancel the lease. While some states have laws that provide consumers with a "cooling off and rescission period" (like 72 hours) for certain types of contracts, typically such laws have not been extended to rental housing contracts. The lease is binding, even though you have yet to assume possession of the premises. You will remain responsible for the time the apartment is vacant and all costs associated with advertising and re-leasing the unit. This legal responsibility will stop when the premises are successfully re-leased to a qualified replacement tenant. You may be able to negotiate a lease-break fee by mutual agreement to put this matter behind you when you move.

Tenants' attorney Kellman replies:

I agree with Ted that there is no automatic cooling off or rescission period in residential leases. Once it is signed, it is usually a done deal. But even if there is no legal right to cancel the contract, there are ways that leases can be terminated with a minimum of cost to the tenant. In your case, you may be able to escape liability on that lease in several ways. You may assist in obtaining a replacement tenant by advertising or networking efforts on your own. You may offer a discount on the rent, which you would pay to attract that new tenant.

There are even more methods available to break leases. A tenant may be relieved of a lease when the landlord/agent misrepresents or conceals important facts about the unit. There may be some term or defect in the lease itself that may allow an early termination. Seek legal advice before agreeing to pay any more rent on that lease to weigh your options.

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