What is the best way to terminate a lease agreement early?
Content
The conclusion of lease agreements is common both among entrepreneurs who use properties to conduct business, and among individuals entering into rental agreements. They can be concluded for an indefinite period or with a clearly stated date for the end of the relationship. Is it possible to terminate the agreement early, in connection with which this can be done?
What are the grounds for early termination of a lease agreement?
Providing an object for rent is a transaction. In accordance with the law, at the initiative of any party, the lease agreement can be terminated early. There are three ways in which termination can be effected. These include:
- Refusal to continue the relationship unilaterally.
- Signing an agreement between the parties to terminate the contract.
- Filing a claim in court.
The grounds on which the agreement can be considered terminated ahead of schedule are stated in the text of the document.
A demand to terminate the lease agreement may be made on the following grounds:
- In case of significant damage to property belonging to the owner.
- Payments for the use of the property are not transferred to the lessor's account more than twice in a row.
- The item that is provided for use is used by the party for other purposes than for its intended purpose, in violation of the clauses of the agreement.
- You can terminate the contract ahead of schedule if major repairs are specified in the obligations, but they are not carried out.
- It is possible for the tenant to terminate the agreement if the property transferred to him initially had defects or was unsuitable for use for reasons beyond his control.
If one of the parties wants to terminate the lease agreement for reasons not specified in the agreement, this can only be done in court.
Instructions for terminating a lease agreement
If a mutual agreement is reached between the parties to the transaction that the agreement will be terminated, everything must be documented.
Important! If the lease agreement has been registered, then the agreement on its early termination must go through the same procedure.
Land plot
Agricultural plots are often the subject of lease transactions from both individuals and legal entities. There is a lease agreement for 49 years . It is concluded with the municipal administration and the user.
The tenant terminates the lease agreement early if the other party does not pay the rent. Most often, the relationship is terminated unilaterally if funds are not paid for 3 consecutive months.
The lessor has the right to withdraw the object from use earlier than the agreed period and in the event that the activities of the second party worsen the quality of the land or the site is used for other purposes. But it is impossible to terminate the agreement on the use of a land share early of one’s own free will. The parties must come to a mutual agreement. Otherwise, all relations must be resolved through court or pre-trial dispute resolution .
Termination is drawn up in the same form as its conclusion ( example ). The agreement should be drawn up according to the following model:
- date and place of conclusion of the agreement;
- Full names of the parties;
- number of the lease agreement registered in the registry office, cadastral number of the property;
- moment of termination of the relationship;
- signatures of the parties;
- date of document preparation.
The agreement is drawn up in two copies.
Important! When concluding an agreement with the administration for the lease of agricultural land, it can be terminated unilaterally by the lessor if this share is not used for its intended purpose within three years.
Apartments
lease agreement can be drawn up .
If the decision to terminate the lease agreement is made by the lessor, he sends a letter in free form. If the other party has no objections, then within the specified period the property is transferred and a deed is drawn up.
If the tenant refuses to accept the landlord's terms, the other party has the option of going to court. To do this, you must have a second copy of the letter on hand and notification that the addressee has received the first. This will become the basis for the trial of the case.
Premises
The lease agreement for any premises, both residential and non-residential, can also be terminated earlier than the period specified in the document. The main reason is payment arrears.
Non-residential premises are often leased to individual entrepreneurs and legal entities for their business activities. When signing the document, the second party assumes responsibility for the safety of the object. At the same time, there are cases when the premises begin to be used for other purposes, thereby deteriorating it. For example, an apartment is used as a warehouse.
To properly terminate a registered lease, the landlord must send a letter of notice to the other party outlining the reasons for terminating the document.
Car
Renting a vehicle falls under the category of providing services. Termination of a lease agreement for such an object has its own characteristics. Operation of a vehicle or equipment may be terminated early if it is damaged or payment is not made.
In this case, the owner has the right to demand compensation for damage caused, that is, repair of broken equipment. If during use the product has completely become unusable, the lessor has the right to demand the purchase of an equivalent one.
There is a nuance! The car is rented by one person, but he has the right to transfer the driving to third parties. On this basis, it is impossible to unilaterally terminate the lease relationship.
Unilateral early termination of the lease agreement
If there are grounds for termination of the relationship under the lease agreement, the party must put forward a demand. If agreement is reached, use of the facility may be terminated prematurely out of court.
By agreement of the parties
The procedure for terminating the contract by agreement of the parties is the most acceptable. The basis for such actions does not necessarily have to be the negative consequences of the transaction. But it is very important that special points be taken into account when carrying out the procedure:
- The agreement must specify the reasons why the transaction is terminated early. And the basis must be a mutual decision of both parties.
- The text of the agreement must specify the stage of execution of the contract.
- At the time of entry into force of the agreement on early termination of the contract, it is necessary to complete all mutual settlements. Or you need to specify the deadlines for making payments.
- The document must state the tenant's obligation to return all property within a specified period. It is recommended to attach the acceptance certificate simultaneously with drawing up the agreement.
From the moment the lease termination agreement comes into force, the advantage of renewal disappears. If you want to rent the property again, you will have to draw up a new contract.
At the initiative of the lessor
The landlord has the right to demand early termination of the contract if its terms are not met. At the same time, he may demand compensation for all losses caused to him and compensation for damaged property.
First of all, the landlord must send a letter requesting to vacate the premises within a specified period or to cease operation of the facility. The text should include requirements for compensation, if necessary. Only if the other party refuses to comply with the requirement can an application be filed with the court.
At the initiative of the tenant
The other party to the transaction can also terminate the relationship early. It is important to know whether you need to send a notice to the landlord. Any failure to fulfill the terms of the contract, either on one side or the other, may cause termination of the contract.
If the owner prevents the transfer of property or delivers it with defects, this may be a reason for early termination of the agreement. The tenant must provide written notice describing the provisions that have not been met.
It is important that any reason is documented. When going to court, the other party may claim that this is slander if there is no supporting evidence.
It is possible to terminate the lease agreement unilaterally only on the basis of serious violations. Additional reasons may be specified by the parties when concluding a transaction.
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