How to Terminate Apartment Lease Contract. Contract Lawyer.
In everyday life, millions of people rely on apartment lease contracts to secure their housing needs. An apartment lease contract sets the foundation for the relationship between the landlord and the tenant, serving as a source of income for one and a means of securing housing for the other.
The termination of an apartment lease contract can be triggered by a variety of factors, whether it's the expiration of the initially agreed-upon term, breaches of contractual obligations, or strategic decisions by the landlord regarding the property. It is advisable to understand the mechanisms that determine the termination of an apartment lease and the associated procedures before signing the commitment.
In this article, we detail the most common reasons why an apartment lease may be terminated, including the rights and obligations of the parties involved in this process. The role of contractual clauses is central in such situations, with a professionally drafted apartment lease contract preserving the rights of the parties involved at a higher level. To ensure that you benefit from such clauses, we encourage you to use only professional contract templates from Docs & Deeds and to consult a contract lawyer online whenever you have unclear aspects.
Apartment Lease Contract vs. General Lease Contract
An apartment lease contract (template) is a specific type of tenancy agreement, where the leased property is an apartment. Therefore, the relationship between a tenancy agreement and an apartment lease contract can be described as one of the whole to the part.
Article 1777 of the Civil Code defines the tenancy agreement: "The tenancy agreement is the contract by which one party, called the lessor, undertakes to ensure the other party, called the lessee, the use of a property for a certain period, in exchange for a price, called rent."
The lease contract (tenancy), as defined by law, is an agreement by which one person, known as the lessor, agrees to provide another person, known as the lessee or tenant, the right to temporarily use, partially or entirely, a property in exchange for a sum of money or other benefits, known as rent. Therefore, a lease contract can convey the use of not only residential properties (apartment lease contract) but also other assets (car lease contract, warehouse lease contract, parking space lease contract, etc.).
An apartment lease contract is reciprocal (synallagmatic, in legal terms), meaning it creates obligations for both parties, each party pursuing its own patrimonial interest. Most contracts have reciprocal obligations for the parties involved. Examples include preliminary contract template, consultancy contract template, and service contract template. However, there are also contract models where only one party has obligations while the other party benefits from the rights arising from that contractual relationship, such as a unilateral NDA template.
It is considered an onerous contract because both parties obtain a patrimonial benefit in exchange for the assumed obligations. When the use is granted without a price, you may be dealing with a commodatum contract (apartment commodatum model, car commodatum model).
Furthermore, it is a commutative contract because the rights and obligations of the parties are clearly defined and balanced at the time of the contract's conclusion. The opposite of such a contract is an aleatory contract, where the parties determine the performance or event that will influence its execution but do not know the extent of their contractual rights or obligations after its occurrence. In other words, an aleatory contract model offers at least one of the parties the chance of a gain while also exposing them to the risk of a loss.
Termination of an Apartment Lease by Reaching the End of the Term. Ask a lawyer.
A key aspect of an apartment lease contract is the term for which it is established, meaning the duration during which the tenant has the right to use the property and in return for which the landlord receives rent. An apartment lease contract is a successive execution contract, meaning it is continuously executed but for a determined period.
An apartment lease contract terminates by reaching the end of the term when it has been concluded for a specified period, such as one year or two years of rent.
Procedure for Termination of an Apartment Lease by Reaching the End of the Term
In the absence of automatic renewal clauses, the contract automatically terminates on the agreed expiration date. The tenant is obligated to vacate the property, and the landlord can decide whether to offer an extension or enter into a new contract.
Who determines the duration of an apartment lease contract?
The duration of an apartment lease contract is established by the mutual agreement of the parties at the time of signing the contract. This can range from a few months to several years, depending on the needs and preferences of the involved parties. There is also a maximum duration prescribed by law – 49 years. A lease contract model specifying a duration longer than the legal term will be considered reduced to the maximum duration.
When the apartment lease contract does not specify otherwise through its clauses, the tenant can unilaterally terminate the contract by giving notice at any time, with a notice period not shorter than a quarter of the time interval for which the rent was established.
What Happens if the Tenant Wants to Stay in the Apartment After the Lease Expires?
If the tenant wants to stay in the apartment after the lease expires, they must obtain the landlord's consent for an extension of the lease through an addendum or by signing a new apartment lease contract. In the absence of prior agreement, the landlord can request the tenant's eviction according to the original contract terms or applicable legislation.
Recommended Steps for Properly Terminating a Lease by Reaching the End of the Term
To properly terminate an apartment lease by reaching the end of the term, it is recommended that:
Notification: The landlord should notify the tenant at least a certain period before the lease expiration date about the intention not to renew the contract or about any conditions for renewal.
Preparation: The tenant should begin preparations to vacate the apartment, make any necessary repairs, return the keys, and set a time for the final handover of the property in the same condition as before the lease.
Handover Protocol: The parties should complete a handover protocol that documents the condition of the apartment and any items inside at the time of lease termination.
This ensures a smooth and legally compliant transition for both parties involved.
Termination of an Apartment Lease by Mutual Agreement. Contract lawyer.
Termination of an apartment lease by mutual agreement represents a method by which the tenant and the landlord jointly decide to end the contractual relationship before the agreed term. To terminate an apartment lease by mutual agreement, both parties must agree on ending the lease and the conditions under which this will be done, such as the termination date, return of the security deposit, payment of any outstanding amounts, and the condition in which the apartment should be handed over.
Procedure for termination of an apartment lease contract by mutual agreement
Since this is an amicable termination, the parties can use a mutual termination agreement template to end the contractual relationship. As with termination by reaching the end of the term, it is advisable for the parties to complete a handover protocol that documents the condition of the apartment and any items inside at the time of lease termination, possibly as an annex to the termination agreement.
Is a written document necessary for termination by mutual agreement?
Yes, it is recommended to draft a written document that stipulates the agreement of both parties and the conditions of termination, to avoid any future disputes. Use a mutual termination agreement template or order a customized agreement.
Is a prior notice required for termination by mutual agreement?
Typically, prior notice is not necessary if both parties agree and sign a termination document. However, it is good practice to discuss and agree upon all aspects arising from the termination of the contractual relationship before the agreed term.
What happens to the security deposit in case of termination by mutual agreement?
The conditions for returning the security deposit should be established by mutual agreement and included in the termination agreement. The deposit can be returned in full, partially, or retained, depending on any damages or outstanding amounts.
What happens if one party does not comply with the termination agreement?
If one party does not comply with the termination agreement, the other party can seek legal remedies to enforce the agreed contractual terms, including claiming damages from the non-compliant party.
Termination of an Apartment Lease Contract by Unilateral Termination. Contract lawyer.
Termination of an apartment lease by unilateral termination represents the process by which one party, either the tenant or the landlord, decides to end the lease agreement before the contractual term without the consent of the other party, in accordance with the provisions stipulated in the contract or applicable legislation.
Is unilateral termination of an apartment lease contract legal?
Unilateral termination of an apartment lease contract is possible if it is provided for in the lease contract or by law. According to the Civil Code, the tenant can unilaterally terminate the lease contract by notification, with a notice period that cannot be shorter than a quarter of the time interval for which the rent was established. If the lease contract is for a fixed term, the tenant can unilaterally terminate the contract by notification, with a notice period of at least 60 days. Any contrary clause is considered unwritten and therefore inapplicable.
What notice period is required for unilateral termination of an apartment lease contract?
The notice period required for unilateral termination of a lease contract varies depending on the contractual provisions and applicable legislation. Generally, a 30-day notice period is standard, but the parties may agree on different terms through the contract model used.
What financial obligations does the tenant have in case of unilateral termination?
The tenant may be required to pay the rent until the end of the notice period, any penalties stipulated in the lease contract for apartment, and cover any damage caused, if applicable.
What happens to the security deposit in case of unilateral termination?
The security deposit may be partially or fully retained by the landlord to cover any damages or outstanding amounts owed by the tenant, in accordance with the terms of the lease contract.
Can the landlord unilaterally terminate the lease contract?
The landlord can unilaterally terminate the lease contract, respecting the terms and conditions stipulated in the contract and providing the necessary notice to the tenant.
What happens if the party unilaterally terminating the lease does not respect the notice terms?
If the party unilaterally terminating the lease does not respect the notice terms and conditions for early termination, they may be held responsible for any damages caused to the other party and can be taken to court for breach of contract.
Termination of an Apartment Lease by Breach
Termination of an apartment lease by breach occurs when one party, either the tenant or the landlord, decides to end the contract due to the other party's failure to fulfill contractual obligations. Termination by contractual breach involves ending the contractual relationship due to breaches and can result in legal and financial consequences for the party that did not meet their obligations.
Reasons for terminating an apartment lease agreement. Contract lawyer.
Reasons for terminating an apartment lease contract can include non-payment of rent, property damage, violation of living rules, or any other breach of the contractual terms. The lease can be terminated due to the tenant's or the landlord's actions.
A particular case of lease termination by breach is when the landlord can request the court to rescind the lease if the tenant, their family members, or others allowed by the tenant to use the property, exhibit behavior that makes cohabitation with others in the same building or neighboring buildings impossible or impede the normal use of the property or common areas.
Is prior notice required for lease contract termination?
Yes, usually, prior notice is required specifying the contractual breaches and offering a period for their remediation before initiating rescission. If the lease contract includes clauses allowing rescission through simple notification without further formalities, termination can be immediate.
What happens to the security deposit in case of lease contract termination by breach?
The security deposit can be partially or fully retained to cover damages caused by the tenant's contractual breaches. If the landlord is responsible for the lease rescission, the deposit will generally be returned in full, along with any compensation for damages caused to the tenant.
Can the tenant rescind the lease contract if the landlord fails to fulfill obligations?
Yes, the tenant can rescind the lease if the landlord fails to fulfill obligations, such as making necessary repairs or ensuring adequate living conditions.
What happens if the guilty party does not accept lease contract termination?
If the party responsible for the breach does not accept the lease rescission, the other party can seek a court ruling to obtain a rescission and compensation for damages suffered.
What Happens After Lease Contract Termination?
If the tenant refuses to vacate the apartment despite their right to use it having ended, the landlord can initiate an eviction action.
Eviction is the legal procedure by which the landlord attempts to remove a person from possession or use of the property, whether it is the former tenant or an occupant who never had the right to use the apartment.
Eviction notice
Before initiating the legal eviction process, the landlord must send a written notice to the tenant, informing them of the reasons for eviction and offering a period to remedy the situation by voluntarily vacating the apartment.
Eviction court request
If the tenant does not comply within the specified period, the landlord can file an eviction request with the competent court. The request must include the reasons for eviction and supporting evidence.
Court hearing for eviction request
The court will review the eviction request and schedule a hearing. Both the landlord and the tenant will be summoned to present their views. After hearing both parties, the court will issue a ruling on whether the eviction is justified.
Do i have the right to enter the apartment if the tenant occupies it without right after lease termination?
No, in general, you do not have the right to enter the apartment if the tenant occupies it without right after the lease has ended. In such situations, it is necessary to follow the legal eviction procedures. Eviction is a complex legal process that requires following formal steps and obtaining a court ruling. Without going through the eviction procedure, you may be liable for damages caused to the tenant and could face criminal charges.
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