Total Taking; Automatic Termination Clause Samples

The 'Total Taking; Automatic Termination' clause defines the process and consequences when a property is entirely taken by a government authority, such as through eminent domain or condemnation. In practice, this clause typically states that if the entire leased premises are taken, the lease will automatically terminate without further action required by either party, and any prepaid rent or security deposits are handled according to the lease terms. Its core function is to provide certainty and clarity for both landlord and tenant by establishing a clear outcome—automatic lease termination—if the property can no longer be used as intended due to a total taking.