To give up or discontinue any further interest in something. For real estate purposes, abandonment refers to the relinquishment or surrender of property rights. In leased property, abandonment involves the voluntary surrender of the premises by a tenant before the lease expires, without consent of the owner. In legal terms, abandonment refers to the general intention to relinquish along with the physical act of abandoning.

In the case of an agreement/contract involving real estate, the buyer must give proper notice of intention to cancel and the seller must accept such notice, thereby terminating the agreement. However, assuming that the sale in question is valid and binding, abandonment by the buyer does not relieve contractual obligations—the seller must specifically release the buyer. Real estate practitioners encounter abandonment when a mortgagor is unable to make stipulated mortgage payments and vacates the premises. The mortgagee then takes control and may exercise options concerning the disposition of the property. When the mortgagor is in default, various legal remedies are available including foreclosure, judicial sale, power of sale, and quit claim deed.

Abandonment is also referenced in commercial leases. Lease wordings will differ but, generally, once abandonment has taken place, the entire amount of rent owing under the lease is due and payable. The landlord is permitted to enter and seize the assets remaining on the premises to assist in satisfying outstanding amounts.

Example

Owner Smith leased a retail commercial space to Tenant Jones. Rents due and payable under the lease were remitted promptly for the first six months, however, Smith did not receive rent during the seventh and eighth month. On visiting the property near the end of the eighth month, Smith discovered that Jones had abandoned the premises. This action did not relieve Jones of obligations associated with the lease and Smith took appropriate legal action as set out in the lease document. He entered the premises to seize any remaining assets of Jones pursuant to his right of distain. He also took legal action against Jones for the deficiency and leased the space, following selected renovations, to a new tenant.