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How to terminate a Lease Agreement. Rights and obligations



Lease contract is the legal document that binds two parties to an agreement for the use of a property, as well as the rights and duties of the tenant and the landlord, and the respective term of the lease.

Most tenants have doubts about the need to fulfill the contract until the end or whether it can be terminated earlier.

The answer is yes. The contract can be terminated earlier, but there are rules to follow and, of course, duties you must have towards your landlord. And the same applies if you are the landlord.

Find out how, why and when you can terminate a lease.


Is it possible to terminate the lease?

Yes, any lease agreement can be terminated. And by either party, but of course following some legal rules. To terminate a lease before the established end date, you must be aware of certain deadlines, especially those for communicating your intention.

There are two basic rules for terminating the contract:

  • Written notice by registered letter (see the point below for more details on the letter);

  • Sending prior notice of termination of the contract in accordance with the legal term.

What reasons are valid for terminating a lease?

On the tenant's side, there is not necessarily a list of reasons that need to be listed to substantiate a contract termination letter. It is enough to meet the deadline established by law to exit the contract in a certain way.

As for the landlord, on the other hand, there are rules for justifying the termination letter. There are currently three valid reasons for a termination of contract by the property owner:

  • Necessity of the property for own residence or for a descendant in the first degree (children);

  • Need for structural restoration works that need to have the property vacated, or that are equivalent to at least 25% of the value of the property, or that serve to avoid a future demolition of the property;

  • Late rent payments exceeding three months (letter to initiate eviction proceedings).

How long in advance should I send the contract termination?


The deadlines for sending the termination of the contract vary depending on the type of contract established, namely the stipulated duration.

Therefore, the dates that you should take into account are those indicated in articles 1097 and 1098 of Law No. 31/2012 of 14 August.


For tenants:

  • 1/3 of the initial period prescribed in the contract – contracts with a duration of less than six months;

  • 60 days (2 months) – contracts with a duration equal to or greater than six months and less than one year;

  • 90 days (3 months) – contracts with a duration equal to or greater than one year and less than 6 years;

  • 120 days (4 months) – contracts lasting 6 years or more


For landlords:

If you are a landlord, take note that the deadlines for communicating termination of the contract increase considerably compared to those of the tenant. For landlords the deadlines are:

  • 1/3 of the initial period prescribed in the contract – contracts with a duration of less than six months;

  • 60 days (2 months) – contracts with a duration equal to or greater than six months and less than one year;

  • 120 days (4 months) – contracts with a duration equal to or greater than one year and less than six years;

  • 240 days (8 months) – contracts lasting more than six years.


How to write a lease termination letter?


A lease termination letter must be very clear on the intention to withdraw from the lease. It is therefore important that it has clear text and that the sender's identification is clear and unambiguous. Furthermore, it is important that it contains the reasons for termination so that both parties are safeguarded throughout the process.

These are the points that you cannot miss in the letter:

  • Date of sending the letter/communication;

  • Letter addressed to the landlord or tenant;

  • Proper identification of both parties involved in the contract;

  • Indication that it is a letter of termination – you can and should mention that you send it to the Under the law within the period established for the complaint;

  • Refer to the address of the property that is in force in the lease contract;

  • Reasons for terminating the contract;

  • Communication of the expected date for vacating the property.

Very important: when you send the registered contract termination letter, always keep a copy of the letter and the registration paper, to serve as proof if necessary.


Is there a deposit refund in a contract rescission?

Yes. If the property does not show any signs of damage, and everything is in accordance with the rules established in the original contract, the landlord is legally obliged to refund the amount of the deposit to the tenant.


See article in full here.

Source: Idealista



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