What Are the Legal Consequences of the Termination of a Lease Agreement?

What Are the Legal Consequences of Terminating a Lease Agreement

If a lease agreement includes a time limit, whether written or verbal, it terminates automatically at the end of that period. If the parties continue the lease agreement without an explicit agreement upon the expiration of the term, the lease then continues as an agreement of indefinite duration. If the lease agreement reaches the 10-year mark, the lessor has the right to terminate the lease agreement by providing a notice of termination in accordance with the general provisions of the Code of Obligations. In general, for lease agreements of indefinite duration, the parties may terminate the agreement by complying with the legal termination periods and notice periods. The calculation of termination periods is based on the start date of the lease agreement. If the termination is made without complying with the termination periods or notice periods specified in the lease agreement or the law, the notice becomes valid for the next termination period. Either the tenant or the lessor has the right to terminate the lease agreement by complying with a 3-month notice period for the end of the lease term in accordance with the general rules of the lease agreement, or if no such rule exists, for the end of a 6-month lease term. For movable property leases, both the tenant and the lessor have the right to terminate the agreement by providing a 3-day prior notice. If the lessor leases a movable asset as part of their professional activity and it is for the tenant's private use, the tenant may terminate the lease agreement at the end of a 3-month lease term by providing a notice of termination at least one month in advance. In cases where the right of termination can be exercised, the lessor or the tenant may terminate the lease agreement in accordance with general provisions. However, for residential and roofed workplace leases, the termination of the lease agreement must be made in writing. There is no requirement for the termination notice to be in an official form; it only requires to be made in writing. If the lessor fails to deliver the leased property to the tenant in accordance with the lease agreement, the tenant has the right to request the termination of the lease agreement by filing a lawsuit in the Civil Court of Peace. In this lawsuit, the tenant may present the lease agreement, photographs and documents showing that the leased property was not delivered in a proper condition, witnesses, discovery and expert reports, and warning notices as evidence. Additionally, if the tenant has suffered financial losses since the establishment of the lease agreement, they also have the right to claim compensation for their financial damages in the lawsuit.