Dissolution of Lease Agreement Example
\n\n\n A **dissolution of lease agreement** is an official statement by which you or your landlord terminates the lease agreement. This may be necessary when moving out, in case of a conflict, or if the agreement is no longer desirable. A **legally correct example** helps you to formulate the dissolution correctly, so that you do not encounter problems with your landlord or the court.\n
\n\n\n In this article, we explain how to draft a dissolution, which **legal rules** apply, and what you must do if you or your landlord wishes to terminate the agreement. We also provide a **practical example** that you can adapt to your situation.\n
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What is a dissolution of lease agreement?
\n\n A **dissolution of lease agreement** is a formal statement that you or your landlord wishes to terminate the agreement. This can happen in various ways, depending on the situation:\n
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- Mutual consent: Both parties agree to terminate the agreement. \n
- Unilateral dissolution: One party (usually the tenant or landlord) wants to end the agreement, for example in case of a **serious breach of the agreement** or at the **end of the lease period**. \n
- Dissolution by the court: If there is a conflict and the parties cannot agree, the court may dissolve the agreement. \n
\n The **legal basis** for dissolution is primarily set out in Book 7 of the Dutch Civil Code (BW), particularly Article 7:270 et seq. In addition, there are specific rules for **residential tenancy** (Tenancy Act 2015) and **commercial tenancy**.\n
\n\n \nWhen may you dissolve the lease agreement?
\n\n Whether you may dissolve the agreement depends on the situation. Below are the main scenarios in which dissolution is possible:\n
\n\n1. Dissolution by mutual consent
\n\n If both parties agree, the lease agreement can be dissolved simply. This is often the case in:\n
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- The **end of the lease period** (for fixed-term lease agreements). \n
- A **desire to move** (if the landlord agrees). \n
- An **agreement on termination** (for example, if the tenant finds a new home and the landlord accepts this). \n
\n In this case, you do not need to draft a formal dissolution statement, but a **notice of termination letter** is advisable. See our article on notice of termination of lease agreement for more information.\n
\n\n2. Unilateral dissolution by the tenant
\n\n If the tenant wishes to unilaterally dissolve the agreement, there are specific rules. This is only possible in certain cases:\n
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- For an indefinite-term lease agreement: The tenant may terminate the agreement with a **notice period** (usually 1 month). This is provided for in Article 7:270 BW. \n
- For a fixed-term lease agreement: The tenant may only dissolve if the landlord consents or if there is a **serious reason** (for example, poor condition of the property). \n
- For a residential tenancy agreement (Tenancy Act 2015): The tenant may dissolve the agreement if the landlord fails to fulfill its obligations, such as **lack of maintenance** or **unsafe conditions**. \n
\n Note: for a **commercial lease agreement** (for example, office space), the rules are stricter. Here, the tenant may often only dissolve if the landlord gives permission or if there is a **serious breach**.\n
\n\n3. Unilateral dissolution by the landlord
\n\n The landlord may dissolve the lease agreement in the following cases:\n
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- For a fixed-term lease agreement: The landlord may terminate the agreement once the agreed period has expired. \n
- For an indefinite-term lease agreement: The landlord may give notice with a notice period (usually 1 month), but only if there is a **serious reason**, such as **arrears of rent**, **damage to the property**, or **unlawful use**. \n
- For a residential tenancy agreement (Tenancy Act 2015): The landlord may dissolve the agreement if the tenant fails to fulfill its obligations, such as **not paying rent** or **neglecting the property**. \n
\n The landlord must always have a **valid reason** to dissolve the agreement. Without such a reason, the dissolution is often **null and void**.\n
\n\n4. Dissolution by the court
\n\n If the parties cannot agree on the dissolution, one of the parties may approach the court. The court may dissolve the agreement if:\n
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