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Property

Penal rent

Rent default is a grave matter that can result in severe financial consequences for tenants. In such cases, the landlord may impose a penalty known as "liquidated damages," which requires the tenant to pay a significantly higher amount during the default period. This serves as a deterrent for tenants to fulfill their rent payment obligations on time. It is crucial for both landlords and tenants to understand the concept of liquidated damages and its implications in a lease agreement. As a knowledgeable professor of finance, I urge you to stay informed and mindful of such terms in the realm of real estate.
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