Try Dorit for FreeEarly Termination / Lease Cancellation
Ending a tenancy contract before its agreed expiration date, either by mutual agreement or due to a fundamental breach.
A lease agreement is a binding legal commitment for a fixed term, and breaching it can trigger compensation claims. Nevertheless, valid ways to cancel early exist: a written mutual agreement between landlord and tenant, cancellation triggered by a fundamental breach (such as major unaddressed repairs or persistent non-payment of rent), or invoking an early exit clause set in the lease beforehand.
If no exit clause exists and no breach occurred, a tenant departing early must compensate the landlord—typically covering several months' rent or paying until a replacement tenant is found. Conversely, a landlord terminating the contract without legal cause may owe the tenant compensation for relocation expenses and related losses.
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Related terms
Rental Agreement
A contract between a landlord and tenant detailing lease terms, contract duration, rent amount, and the obligations of each party.
Lease Extension Option
A tenant's right to extend their rental contract for an additional period under equivalent terms, even without landlord approval.
Fundamental Breach
A severe breach of the lease agreement that entitles the harmed party to terminate the contract and seek damages, such as repeated non-payment of rent or intentional property damage.
The information in this glossary is for general informational purposes only and does not constitute legal advice. In the event of a dispute or a specific legal question, consult an attorney specializing in tenancy law.