How to Terminate a Lease Agreement on Time.

In order to have a legal stay in a foreign property, it is necessary to enter into a specific contract. Usually, this is a lease agreement. To understand how to properly conclude a contract, one must also know how to terminate a lease agreement early. Such an algorithm must be known by both the landlord and the person looking for an apartment to rent. 

Anyone planning to move into a new apartment should know how to terminate a lease agreement. Because with such a service, one must be able to defend their rights. It is also important for the property owner to understand how to terminate a lease agreement early, as they also have rights but also responsibilities. Additionally, the contracting parties should know how to terminate a lease agreement to avoid payment penalties. 

How to Terminate a Lease Agreement: How to Properly Terminate the Contract? 

The need to enter into and terminate a contract arises quite often. In Ukraine, a lease agreement is a legally binding document that regulates the rights and obligations of both the tenant and the landlord. However, in life, circumstances may arise that necessitate the early termination of the lease agreement.

Regardless of the reasons for terminating the contract, it must be done correctly. Each party has its own vulnerabilities. Even the property owner cannot simply throw the “tenant” out. 

First, one must clarify what reasons there are for terminating the contract. Usually, these include: 

1. The tenant's initiative. Such reasons may include the necessity to move to another city, a deterioration of financial circumstances, or non-fulfillment of the accommodation conditions (e.g., hidden defects).
2. The landlord can also be the initiator. They may not receive payments, notice breaches of contract. Such reasons can also include personal needs of the landlord (returning to the apartment for personal use).

It is important to consider the circumstances that arose from external reasons (which neither party is responsible for). For example, natural disasters or accidents, or the recognition of the apartment as unsuitable for habitation.

The simplest reason could be the agreement of both parties. So if both sides have agreed to terminate the lease relationship.

How to Legally Terminate the Contract? 

Both the conclusion and the termination of the contract take place within the legal framework. According to the Civil Code of Ukraine and other norms, the parties can terminate the lease agreement if:

1. There is a provision in the contract that allows for a quick and legal termination of the contract. 
2. If one of the parties ignores the contractual obligations (systematically violates them). 
3. There may also arise circumstances that make it impossible to fulfill the contract. In this case, it can also lead to a legal termination of the contract. 

It is important to remember that terminating the contract without sufficient grounds can result in financial penalties or legal disputes.

Termination of the Contract by Agreement of the Parties 

The simplest and most accessible way to terminate the contract may be the agreement of the parties. Here’s how it’s done: 

1. First, negotiations are conducted to discuss the reasons and ways to part “amicably”. Each party can also propose beneficial terms (e.g., reimbursement for costs or additional Time to find new tenants).
2. If the parties come to a unanimous decision, an agreement is prepared. This includes drafting a written contract for the termination of the lease agreement. This contract must indicate the date of lease termination, conditions for the return of the deposit, and other details.
3. This agreement must be notarized. If the contract has been notarized, the agreement for its termination must also be notarized by the notary.

This is a simple and relatively quick option. 

If One Party Terminates the Contract

There are also other cases where the contract must be terminated by one side only. That is, if no agreement can be reached, the party that wishes to terminate the contract can initiate an unilateral termination. Here’s how the tenant does it: 

1. First, the contract must be reviewed. Check whether the possibility of unilateral termination is provided for. Ensure that all obligations are fulfilled (e.g., payment of rent).
2. Next, the landlord must be informed. Write a termination letter to the landlord stating your intention to terminate the contract. Also, mention the reasons and propose possible solutions.
3. The next step is to vacate the apartment or house. Ensure that the accommodation is in proper condition. Hand over the keys to the landlord.

Here’s how the landlord does it: 

1. Review the contract carefully again. Ensure that the reasons for termination correspond to the contractual conditions.
2. The next step is to notify the tenant. Send the tenant a written termination letter.
3. Don’t forget the legal assistance. If the tenant refuses to vacate, contact the court to file for eviction.

This procedure is more complicated, especially from a legal standpoint. 

How to Terminate the Contract Through Court? 

In cases where the parties cannot reach an agreement, termination is only possible through legal proceedings. This is the hardest and longest way. 

Here’s how to proceed: 

1. First, you should start preparing the lawsuit. Prepare a statement of claim indicating the reasons for termination. Include a copy of the lease agreement and evidence of breach of terms.
2. The next step is to file the lawsuit in court. Submit the lawsuit at the court location where the apartment is located.
3. Following these steps, a court hearing will take place. Present your arguments and evidence and then wait for the court’s ruling.

If the court renders a judgment, it must also be enforced. If the court grants the claim, the contract is terminated. This means that the landlord can, if necessary, rely on enforcers to apply for eviction.