Termination of a fixed-term lease agreement
A lease agreement concluded for a specific period of time naturally ends at its expiry. However, it can be terminated earlier than the agreed lease term if such an option is directly provided for in the contract. The possibility of early termination must be agreed in accordance with the law. A right of termination cannot be validly agreed solely in favour of the landlord without a legal reason, as this would impermissibly weaken the position of the tenant. Unless the parties have expressly so agreed, a fixed-term tenancy cannot be terminated without giving a specific legal reason purely on the arbitrary grounds of one of the parties.
What have we encountered in practice?
Our client, Pavel, a surveyor, concluded a lease agreement for 5 years without the possibility of early termination. However, after 2 years he got a job in another city and moved from Brno to Prague, where he could not commute regularly. However, the landlord did not want to “let him go” and insisted on paying almost 3 years of rent.
“The law takes such a situation into account. The tenant may terminate the fixed-term contract upon three months’ notice if the circumstances on which the parties based the contract change. In this case, the tenant cannot be required to continue the lease. A similar case is a change in health conditions.”
Mgr. Marek Svobodný, specialist in real estate law
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What rights does the landlord have when giving notice for a fixed term?
The landlord can only terminate a fixed-term contract for the reasons provided by law, i.e.:
- if the tenant grossly breaches his/her obligation under the lease (for example, stops paying rent),
- if the tenant is convicted of a deliberate crime committed against the landlord or a member of the tenant’s household, or against a person living in the house where the tenant’s flat is located, or against someone else’s property located in the house,
- if the flat is to be vacated for reasons of public interest (for example, it must be demolished to make way for a city ring road),
- if there is another similarly compelling reason for terminating the tenancy.
The law protects the tenant as the weaker party to the contract on these precise grounds.
The lawyer advises: Beware also of too long a “specified” period. If you agree a lease for more than 50 years, it is deemed to have been agreed for an indefinite term, with the proviso that in the first 50 years the lease can only be terminated as if it had been agreed for a fixed term.
However, it is more advantageous for the landlord to choose a fixed-term contract for a short period of time. This is the most effective way for the landlord to protect itself from an irresponsible tenant and not have to prove breach of duty. It also opens up room for possible rent increases when the contract is extended.
Termination of the lease agreement for an indefinite period
The tenant may give notice of termination of a lease for an indefinite period at any time, even without giving reasons. A three-month notice period must be observed unless otherwise agreed with the landlord in the contract.
Tip for article
Tip: In this case, you don’t have to give any reasons for your resignation. However, nothing prevents you from doing so.
When can the landlord terminate your permanent contract?
If the landlord wants to terminate the permanent contract, he can only do so for legal reasons. Specifically, for the same reasons as in the case of a fixed-term contract (we have mentioned them above) and in addition if he wants to move into the flat himself or wants it for his spouse on divorce. This also applies if he needs it for his relatives, e.g. children who have started university. However, the relatives should actually move into the flat. A fake need may lead to a claim for damages and generally call into question the validity of such a statement.
In addition, there is an obligation for the landlord to re-let the apartment to the tenant or to compensate him for damages if he has given his or a family member’s housing need as the reason for the termination.
How do I defend myself against an unjustified termination of my lease?
The law views the tenant as the weaker party. However, in order to be able to defend himself, he must be familiar with the notice and its contents.
“For example, Ms Karla, the security guard, avoided deliveries from the landlord. When she found out that she had received a notice of termination of her lease, it was a quarter of a year after the landlord had sent her. There was nothing that could be done about the notice, even though the reason was completely irrelevant and she would certainly have won the lawsuit otherwise. Failure to receive documents served by the landlord is usually a mistake and not an advantage to the tenant. This is because such a notice is deemed by law to be served when it is delivered into the addressee’s sphere. It should therefore be in writing, sent to all persons to whom it relates (for example, if there are spouses in the tenancy, then to both), sent to the address where they actually reside and, for any proof of posting, it is advisable to send it by registered post.
After the notice is served, the tenant has 2 months to object to the notice and to file a lawsuit in court. This is one of the biggest changes in tenancy law. It puts the responsibility on the tenant and makes it easier for landlords. Previously, landlords had to apply to the court for what was known as a ‘notice to quit’. Now they just wait to see if the tenant defends himself in time. If they don’t, even an invalid notice becomes enforceable and the tenant can do nothing against it.
Attention! However, the landlord should inform the tenant of the right to object to the notice and at the same time suggest the possibility of a court review of the validity of the notice. If the tenant fails to do so, the notice is invalid.
The apartment is deemed to have been handed over when the landlord receives the keys and is otherwise not prevented from accessing and using the apartment. It may be, however, that, under all the circumstances, the tenancy may be deemed to be terminated, the tenant has left and there is no doubt as to his intention, in which case the tenancy is also deemed to be terminated.
Immediate termination of the lease
In exceptional cases, the law allows a tenancy agreement to be terminated without notice, i.e. with immediate effect. Typically, these are situations where the other party breaches its obligations in a particularly serious manner. For example, the landlord can give immediate notice if the tenant fails to pay rent and utilities for at least three months, deliberately damages the apartment or makes serious structural alterations to it without consent. For example, the tenant can terminate the tenancy immediately if the apartment is in such a state that it endangers the tenant’s health and the landlord has failed to remedy the situation despite giving notice. Even in these cases, the notice must be in writing and properly justified.
What if the tenant does not vacate the apartment at the end of the tenancy?
When the tenancy ends, the tenant’s obligation to vacate the apartment does not end automatically from one day to the next, but without undue delay. If the tenant continues to use the apartment unlawfully after the end of the tenancy, the landlord has the right to claim compensation for the use of the apartment, usually in the amount of the normal rent. However, the landlord may not arbitrarily vacate the apartment, change the locks or disconnect the utilities – such action could be illegal. In practice, it is often necessary to resolve the situation by summons or through the courts.
Summary
The termination of a lease for an apartment must be carried out in accordance with the Civil Code and with regard to whether the lease is for a fixed or indefinite period. The termination must always be in writing, duly served on the other party and, in the cases provided for by law, contain a specific reason and a statement of the tenant’s right to object and to take legal action. As a rule, a fixed-term lease expires at the end of the agreed period and can be terminated early only if the statutory conditions are met, typically in the event of a material change of circumstances or for serious reasons on the part of the tenant or the landlord, while an indefinite-term lease can be terminated by the tenant at any time without giving any reason, provided that the three-month notice period is observed. The landlord may only terminate the lease for reasons provided for by law, for example, in the event of a gross breach of duty by the tenant or for reasons of his own housing need, and a sham termination may lead to an obligation to compensate the tenant for damages. The tenant may defend himself against an unjustified or defective notice by objection and action in court within two months of its delivery, otherwise even an invalid notice becomes effective. Upon termination of the lease, the tenant is obliged to vacate and surrender the apartment without undue delay, and the landlord may not resolve the situation arbitrarily, but only by legal means; in practice, therefore, the least risky solution is an agreement on the termination of the lease, which clearly stipulates the date of departure, the settlement of the deposit and the surrender of the apartment.
Frequently Asked Questions
Can my landlord give me notice just because he wants to raise the rent?
No. The landlord’s desire to increase the rent is not in itself a legal reason for terminating the lease. If the landlord terminates the lease on the basis that he needs the apartment for himself or his relatives, but in fact subsequently offers it for rent at a higher rent, this may be an unlawful termination. In such a case, the tenant has the right to defend himself in court and possibly claim damages.
What if the statement is missing the instruction on the possibility of defending oneself in court?
The lack of an instruction on the right to object and to apply to the court is a serious defect in the statement. If the landlord fails to properly instruct the tenant, the notice is invalid. However, even in such a case, the tenant should defend himself proactively and not let the matter “fizzle out”, as a timely response is crucial to protect his rights.
Do I have to pay rent even if I left the apartment before the notice period ended?
Yes, just moving out of the apartment does not automatically end the tenancy. Rent and utilities usually have to be paid until the end of the notice period, unless you and the landlord agree otherwise. Exceptions are when the tenancy ends by immediate termination or when the apartment is objectively uninhabitable.
Can the landlord enter the apartment after the end of the lease without the tenant's consent?
The landlord can only enter the apartment when the tenant has actually handed over the apartment, i.e. typically handed over the keys and allowed full access. If the tenant continues to use the apartment illegally after the end of the lease, the landlord still cannot act arbitrarily, but must choose legal steps, such as an eviction notice or a court solution.
What should I do if I'm not sure if the notice of termination is valid?
If you have any doubts about the validity of the notice, it is advisable to address the situation as soon as possible. Early legal advice can reveal formal or factual errors in the notice and prevent even an invalid notice from becoming effective simply because the tenant did not defend himself within the statutory time limit. The sooner the situation is dealt with, the better the chances of success without litigation.
