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  2. A recapture clause is a component of a commercial lease contract that says the landlord may reclaim the property ahead of the lease's expiration. The landlord may only reclaim the property following a trigger event, which is negotiated by the landlord and prospective tenant in advance.
    www.investopedia.com/terms/r/recapture-clause.asp
    The recapture clause is a provision that allows the landlord to terminate the lease early and take back possession of the property under certain circumstances.
    fastercapital.com/content/Lease-Agreement--Under…
    In commercial leasing, a recapture clause permits a landlord to terminate a lease early, and may also allow them to demand all or part of the remaining lease payments immediately. Recapture clauses can be triggered by a variety of events, but are are most often activated when a tenant closes their business and attempts to sublease the property.
    www.commercialrealestate.loans/commercial-real-…
    A recapture provision in a reinsurance treaty lets the ceding party, an insurance company, take back some or all of the risk initially ceded to a reinsurer. To reduce or spread the risk inherent in underwriting, an insurer may enter into a reinsurance treaty and relinquish part of its total commitment so it can free up underwriting capacity.
    www.investopedia.com/terms/r/recapture-provision.…
     
  3. People also ask
    What is a recapture clause?A recapture clause refers to a stipulation in a contract that allows the seller of an asset to take the asset back under certain conditions. It is a common component of commercial real estate leases, as opposed to residential property leases.
    What triggers a recapture clause?A common trigger is a tenant’s intention to assign the property to a third party via a sublease. For this reason, the recapture clause is closely related to the lease’s assignment clause, and the two are typically negotiated together.
    What is recapture & how does it work?Recapture is a condition set by the seller of an asset that gives him/her the right to purchase back some or all of the assets within a fixed period.
    When should a landlord invoke a recapture clause?When the first tenant informs the landlord of its intent to assign the property to the new business, the landlord might choose to invoke the lease’s recapture clause. A second common trigger arises from a landlord’s interest in the tenant maintaining a certain level of revenue.
     
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