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Terminating a rental contract: what are the main rules?

Terminating a rental contract: what are the main rules?

 

When you rent a property, it is possible to terminate the lease before the end date, provided you respect a notice period. In some cases, this comes with a notice fee. But which rules apply exactly? Kristophe Thijs, communications director at CIB, explains which factors are important when terminating a lease.

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Termination of nine-year and short-term leases

 

If a short-term lease (less than three years) is automatically converted to a standard nine-year contract, all the rules of the nine-year lease apply. For a nine-year lease, if a tenant terminates during the first year, he or she pays three months' rent as compensation. In the second year, this drops to two months' rent, and in the third year to one month. After the third year, no termination fee is required. This means that when a standard contract is terminated early, the financial obligations vary depending on the length of the lease.

For short-term contracts, the termination fee is one-and-a-half months' rent during the first year, one month during the second year and half a month during the third year. These rules provide clarity for tenants and landlords and help them anticipate the financial consequences of a termination.

 

Obligation to register and specific exceptions

 

Landlords must register leases within two months of signing them when they concern buildings intended exclusively for residential use, such as houses or flats. If this registration is not done in time, the tenant can terminate the lease at any time and without cost, even during the first three years. The termination will then take effect on the first day of the month following the month in which the contract was terminated, giving tenants additional flexibility in case of an unregistered contract.

Conversion from short-term contract to nine-year contract

 

When a short-term lease is not explicitly renewed or terminated, it is automatically converted to a standard nine-year contract. From then on, all the rules of a nine-year lease apply, regardless of the original term of the contract. An example of this is a one-year contract that is automatically converted: in that case, the tenant pays a fee of two months' rent when terminating in the second year, as opposed to one month when renewing a short-term contract. This difference highlights the importance of properly understanding the terms and conditions when entering into leases.

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