Agreement to terminate a lease

How an agreement differs from a notice of termination

Under the conditions set by law, one party can give notice on its own. An agreement, however, requires you both to agree. A mere proposal such as “I'd like to finish next Friday” therefore does not end the lease. The option of agreeing to extinguish an obligation is based on § 1981 of the Civil Code.

Put the agreement in writing and have it signed by all the necessary parties or their authorised representatives. In a joint tenancy, one flatmate cannot sign on behalf of the others. State the lease and the flat the agreement relates to, as well as the exact end date.

What to agree on alongside the end date

Besides the end date, clarify the handover date, the return of keys, the meter readings and the rent for the final period. Address any debts and the security deposit explicitly. The handover protocol will then record the actual condition of the flat, not just an intention to return it at some point.

Be wary of a blanket clause stating that “the parties have no further claims against each other”. At the time of signing, the utilities statement may not yet be available. So specify exactly which items are settled and which will be dealt with later. The end of a lease doesn't mean that all the related payments have been worked out.

To give you an idea: a tenant and landlord agree that the lease will end on 20 October, even though the contract originally runs until December. They don't have to replicate the three-month notice period. They do, however, need to determine what amount is due for October and when the handover will take place. The obligation to actually hand over the flat is governed by § 2292.