Agreement on termination of lease

If the tenant or landlord wants to end the tenancy and there is an agreement between them, an agreement can be made. How to do it and what must it contain to be valid? That’s what we look at in our article.

sbalené stěhovací krabice a v popředí ruka držící klíče
5 minutes of reading

If the situation described in the introductory paragraph arises, then the three-month notice period need not be observed and the end date of the lease may be set arbitrarily. The agreement may also include arrangements for the handover of the apartment and the settlement of other obligations.

The whole of private law is based on the agreement of the parties involved and therefore practically anything can be agreed. Nevertheless, or perhaps because of this, it is important not to underestimate anything. Our guide, Mrs. Sasha, contacted us with a problem concerning a seemingly small omission, which could have had far-reaching consequences. She had entered into an agreement to end her lease and thought she could forget about the small old apartment she had left behind and enjoy her new one with its large terrace and herb beds.

However, when she entered into the agreement, she forgot to insist on a clause concerning possible further claims by the landlord, stating that all claims were settled. This almost backfired on her when the cunning landlord suddenly demanded retrospective payment of the non-existent arrears and rent, which Saša had already paid in cash. Before the trial, however, enough circumstantial evidence was gathered to convict the landlord of lying, and he withdrew his claim completely.

It is always necessary to conclude an agreement in writing. This is required by law because the lease itself must be in writing. Make sure that the parties and the apartment to which the agreement relates are correctly identified. It may certainly be advisable to regulate the method of payment of the remainder of the rent and the way in which the deposit or ‘security deposit’ will be returned.

Even more important in this respect is the handover protocol. According to the law, handover is the moment when the landlord receives the keys to the apartment and can use it without any problems. A record needs to be made of this, which takes into account the state of the energy meters in addition to any defects. Mrs Romana had experienced some gloom with the handover. She had duly given notice of the lease, handed over the flat in good order and logically expected to have everything sorted out. The only thing left was for the landlord to return the deposit he had withheld.

But the complications were yet to begin. One morning, Romana discovered a registered letter in her new mailbox, demanding compensation for the damage to her apartment from her former landlord. He also warned her that he would not give her any security deposit. The damage, he said, exceeded it. Fortunately, however, she found the handover report which she and the landlord’s mother had signed when they handed over the flat to her. The report clearly showed that the apartment was in perfect order apart from a few window panes and the cooker. The landlord eventually relented and accepted only half of the security deposit as compensation. What if the tenant simply leaves without telling anyone? According to the latest statutory regulation, if the tenant leaves the flat in such a way that the tenancy can be deemed to have ended without any doubt, which in practice means that he moves out without prior agreement with the landlord, the flat is deemed to have been surrendered immediately. It is such a “de facto” termination.

Finally, let us add a caveat for landlords. If an agreement is not possible and even after proper notice the tenant will not leave the apartment, it is not a good idea to break down the door and start moving his belongings. The standard route is to file a lawsuit to evict the apartment. Otherwise, the landlord risks criminal charges for trespassing.

Tip: Are you a tenant and need to end your lease? If you can’t reach an agreement with your landlord, you can terminate your lease. Do you have the option to terminate directly in your contract? What will be the length of the notice period? Do you need to give reasons for the notice? Or do you not know what to do as a landlord if the tenant does not pay and does not want to move out? What about an agreement to terminate the lease of non-residential premises? We will try to answer these and other questions in a separate article.

Real Estate Purchase or Sale

We provide a complete package of services for both landlords and tenants. We will draft or review all lease/rental contracts, help with extension or termination of lease, and make sure everything takes place smoothly and without legal complications. You’re also welcome to pay after services are provided.

Tip: Is your lease with your tenant coming to an end? How long after the end of the lease does the tenant have to vacate the apartment? When can you enter the apartment yourself and what can be done if the tenant refuses to vacate?

We prepared this article for the Lidové noviny series “Law & Housing”. See also other articles from the series:

  1. What to watch out for when buying a property
  2. How to get a mortgage
  3. What to check before buying a property
  4. Who pays the property transfer tax and how?
  5. What should be included in the property purchase contract
  6. The most common mistakes when drafting a proposal to the Land Registry
  7. Buying a property from a developer
  8. Keeping the purchase price when buying a property
  9. The difference between a condominium and a freehold
  10. What is an annuity?
  11. How to properly gift a property
  12. What is the purpose of an easement or servitude?
  13. Making a will and settling an estate
  14. What is a collation
  15. What shouldn’t be missing from a lease agreement
  16. When rent increases can be made
  17. Termination of the lease
  18. Agreement to end the tenancy
  19. How to draw up a work contract with a tradesman
  20. Hidden defects and cancellation of a work contract
  21. When do you need planning permission to renovate a property?
  22. Home Rules
  23. What does serving on a condominium board entail?
  24. Why not underestimate the bylaws in a condominium
  25. Common areas in a block of flats
  26. What is involved in refurbishing a block of flats
  27. Can a condominium or housing association go into debt?
  28. How to renovate a house or cottage
  29. What to watch out for when dealing with a construction “company”?
  30. Building a house on a “green field”
  31. How to remove land from the agricultural fund

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Real Estate Purchase or Sale

We provide a complete package of services for both landlords and tenants. We will draft or review all lease/rental contracts, help with extension or termination of lease, and make sure everything takes place smoothly and without legal complications. You’re also welcome to pay after services are provided.

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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