A commercial lease offers the tenant protection and stability, among other things through the statutory minimum term of nine years. Nevertheless, the tenant can, under certain conditions, terminate earlier or at specific moments. In this article you will read clearly, practically and comprehensively how and when the tenant can end the commercial lease.
In this article you will discover, among other things:
- the statutory minimum term of the commercial lease and why it matters;
- when the tenant can terminate the commercial lease after three, six or nine years;
- how the tenant must give notice correctly and which time limits apply;
- in which cases an amicable termination is possible;
- what the consequences of an invalid notice are;
- and when professional support is useful.
Want to calculate the notice period yourself? Use our free Commercial Lease Monitor!
When can the tenant terminate the commercial lease?
The statutory minimum term of 9 years
The Commercial Lease Act stipulates that a commercial lease must last at least nine years. This is a mandatory rule protecting the tenant, so the nine-year minimum term cannot be shortened by contract. The aim is to give the tenant enough time to build up a business and recoup investments.
Interim termination by the tenant after 3, 6 and 9 years
Despite the minimum term, the tenant can indeed terminate earlier, taking effect at the end of each three-year period. That right is expressly laid down in Article 3 of the Commercial Lease Act.
No obligation to state a reason
The tenant does not have to give any reasons for the notice. The landlord therefore cannot refuse the termination as long as the formal requirements and time limits have been correctly observed.
How must the tenant give notice of termination?
Required form
The notice is only valid if given by:
- bailiff’s writ, or
- registered letter.
An ordinary letter, e-mail or oral notification is invalid.
Notice period of 6 months
The tenant must give notice at least six months before the end of the three-year period. Too late is too late: a notice sent, for example, four months in advance has no effect whatsoever.
A tenant starts on 1 April 2020. If the tenant wants to terminate at the end of the first three-year period (1 April 2023), the notice must be given by 30 September 2022 at the latest.
Can the commercial lease be ended earlier?
Amicable termination
The parties can end the commercial lease at any time by mutual agreement, but only if the agreement is recorded in an authentic deed or in a declaration before the court.
This strict formal requirement is intended to prevent a tenant from waiving their rights under pressure.
Tenant and landlord agree to end an ongoing commercial lease as of 1 August. They have this recorded in a deed before a notary.
Early termination for breach of contract
The tenant can also claim dissolution of the commercial lease when the landlord seriously breaches their obligations (for example, failing to address structural water infiltration that makes operation impossible). This is done through the court (and falls outside the notice regime).
What if the notice is irregular?
A notice sent too late or in the wrong form is not valid. The lease then simply continues until its scheduled end date or the next three-year period, or until the parties do give notice correctly.
In the event of a dispute, a tenant can go to the justice of the peace. When in doubt, it pays to seek advice in good time. The specialists at Handelshuurloket can help draft the correct notice letter or determine the best strategy.
Frequently asked questions (FAQ)
No, except through amicable termination or when the court dissolves the lease for breach of contract by the landlord.
Yes, but the only alternative is then a bailiff’s writ.
No. The landlord cannot block a correct notice.
Then the notice is invalid. The lease continues until its scheduled end date or the next three-year period.
No. E-mail does not satisfy the legally required form.
A registered letter that is not collected still counts as valid notification.
No. The tenant has complete freedom.
No, not for termination by the tenant at the end of each three-year period. Only in the event of breach of contract may damages come into play.
Yes. Oral agreements are subject to the same statutory rules.
Yes. The obligation to pay rent continues as long as the lease has not been validly terminated.
Any questions left?
Unsure whether the tenant in your file terminated the commercial lease correctly? Or do you have another related question as tenant or landlord? Schedule your consultation!
