recapture clause

recapture clause

(1) A clause in a lease setting out conditions under which the landlord may recapture the premises even without a default by the tenant.A common usage occurs when the tenant wishes to sublease or assign its space for a profit—the new occupant will pay a higher rental rate than the tenant is paying to the landlord.In such a circumstance,the landlord will want to recapture the space and rent it directly to the new tenant or it will want to share in the lease profits.(2) A clause in a statute that provides exceptions to an exception.For example,one clause in the Clean Water Act grants an exception to the requirement to obtain a permit.But,the recapture clause “recaptures”the permit requirement under certain limited circumstances.