Termination of a Lease Agreement: Grounds and Procedure

Termination of a Lease Agreement: Grounds and Procedure

• Termination of a lease agreement concluded for an indefinite period is regulated by the provisions of the Civil Code.
• 
  Either party has the right to terminate the agreement by observing the deadlines provided in the contract or, if none are specified, the deadlines set by law.
• If rent is paid monthly, the contract may be terminated with one month’s notice.
• 
  If rent is paid quarterly, notice must be given three months before the end of the quarter.
  If rent is paid more frequently (e.g., daily or weekly), the notice period may be three days or even one day.

Important: the notice of termination must be made in writing, indicating the grounds, contract details, information about the parties, date, and signature.

Termination of a Fixed-Term Lease Agreement – When It Is Possible

As a general rule, if the lease is concluded for a fixed term, it remains valid until the end of that period. 

Early termination is possible only if: the contract expressly provides conditions or grounds for termination; significant reasons arise that make further use of the premises impossible.

If such provisions are absent, unilateral termination of the contract may result in claims by the other party for compensation of damages.

Termination of a Lease Agreement by Mutual Consent

The most conflict-free method is to terminate the lease agreement by mutual consent. In this case, a written agreement should be drawn up, which must include:

• details of the landlord and tenant;
• contract details (date, subject of lease);
• the date of termination;
• the procedure for settlements and return of the property;
• signatures of both parties.

Immediate Termination of the Lease Agreement

In some cases, the law allows immediate termination of the lease agreement. For the landlord, this is possible if:

• the tenant fails to pay rent for several periods, even after written notice;
• the tenant uses the property for purposes other than intended, or transfers it to third parties without consent;
• the tenant damages the property or creates serious inconvenience to other users of the premises.

Early Termination by the Tenant

The tenant, in turn, has the right to terminate the contract early if:

• the rented premises have hidden defects that were unknown at the time of signing the contract;
• the leased property has become unusable due to the actions or inaction of the landlord.
• In such cases, compliance with written form specifying the grounds for termination is also required.