Under what circumstance could a lease be terminated automatically?

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A lease can be terminated automatically under specific circumstances that fundamentally affect the ability to use or occupy the property. One such situation is when the property is destroyed or condemned. If the physical structure that is the subject of the lease is no longer habitable or usable, either due to destruction (like a fire or natural disaster) or condemnation by a government entity (which typically means that the property is deemed unsafe or unfit for occupancy), the lease is effectively voided. This situation means the tenant cannot reasonably continue to occupy or use the property, leading to an automatic termination of the lease agreement.

In contrast, failing to pay rent does not necessarily terminate the lease automatically; rather, it may lead to eviction or other legal actions by the landlord. Selling the property does not automatically terminate existing leases, as the lease often binds the new owner. Finally, the end of the lease term is not an automatic termination clause since it is a predetermined condition that typically does not involve external circumstances affecting the property's status.

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