A lease must be terminated in time. The notice periods are stated in the law or in the lease agreement. If notice of termination is provided too late it may not be effective, so that the lease will continue (for years). But in specific circumstances a notice provided too late may be considered to be in time.
A lease must be terminated in time. The notice periods are stated in the law or in the lease agreement. If notice of termination is provided too late it may not be effective, so that the lease will continue (for years). But in specific circumstances a notice provided too late may be considered to be in time. So when is a notice provided too late still valid?
In the event of a termination of a lease a notice period has to be observed. The notice period provides the recipient with the opportunity to look for an alternative tenant or alternative space.
The statutory period for the termination of a lease is:
According to our experience and case law, lessors and lessees are often late in providing notice of termination. If the recipient insists on renewal of the lease, the court will have to decide whether the lease – even if notice of termination is provided too late – will actually be terminated. In doing so, the court will weigh the interests of lessee and lessor.
If the lessee has provided the notice of termination of the lease too late, the court will look into whether the lessor still has sufficient time to find an alternative lessee, and what the disadvantage of the lessee would be if the lease will be continued. The court will pay attention to:
Except that a termination must be sent in time, additional formalities apply that must be observed with regard to a termination of a real estate lease:
A lease agreement may also contain other agreements.
The requirements that have to be met when terminating a lease serve different purposes, for instance:
If a formality is breached, it is often relevant if and to what extent the other party suffers a disadvantage as a result of this. If the recipient’s interests – compared to the sender’s interests and the extent to which a formality has been breached – will hardly or not at all be affected, the courts will be less strict in observing the requirements.
If you want to terminate a lease agreement, you should observe the applicable (statutory and contractual) notice period and formalities. This prevents discussions and unnecessary procedures. However, if certain formalities have not been observed, a termination is not necessarily void. A delay in notice of termination can be effective in certain circumstances and lead to termination of the lease.
Would you like to know which notice period applies to your lease and when you have to send your notice of termination of the lease at the latest? Would you like to learn if your termination of the lease meets the applicable requirements? Or do you have any other questions regarding your lease? Please contact us:
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