A notice of default is a statement sent by one contract party to notify another that the latter was in default by failing to fulfil the terms of an agreement and a legal action would follow if the latter continue to default.
In the context of rental agreement, an owner can send to an occupant a notice of default to deny the occupant’s right of access to the storage space if the occupant failed to pay rent or other charges. While laws may vary from states to states, such a notice usually must include the owner's claim showing the sums due at the time of the notice and the date when the sums became due and that the occupant's right to use the storage space will be denied unless and until all sums due are paid by the occupant. The notice should also include the contact information of the owner.
In the context of mortgage foreclosure, a notice of default is a formal notice that a lender filed with courts to notify the borrower who has failed to make payments that the lender intends to conduct a sale foreclosure. The notice normally should include information about the borrower and mortgage loan and actions the lender will take.
[Last updated in November of 2020 by the Wex Definitions Team]