What is the correct way to terminate a commercial real estate lease agreement?
Commercial real estate lease agreement contains many clauses governing the relationship between the landlord and the tenant. One of the most important points is the need to correctly spell out the terms of termination of the contract, both mutually and unilaterally. For example, tenants often come to such a decision if they find premises at a lower rental rate, and the owner may be interested in this due to the failure of the other party to fulfill their obligations.
Quite often, termination of an agreement on the initiative of one of the parties is accompanied by certain difficulties, since this will undoubtedly affect the interests of the other party, as opposed to the mutual.
According to the classification, there are three main ways to terminate the contract unilaterally: on the terms specified in the contract; on the conditions stipulated by law; judicially. The norms on lease agreements for non-residential real estate (retail premises, offices, warehouses, etc.) are regulated by the Economic and Civil Code of Ukraine. Of course, termination of the contract on the terms specified in it is an easier option that helps to avoid a lot of difficulties.
Experts emphasize that a reasonable choice would be to consult with a lawyer for each specific case. Among the popular solutions is the option with a condition that allows you to terminate the agreement without any reason. In such a situation, the condition that obliges the tenant to report the termination of the contract for 3 or more months helps to protect the interests of the owner.
Unfortunately, not always everything goes smoothly, often one of the parties refuses to terminate, for example, tenants do not vacate the premises at the request of the owner. In such cases, it cannot do without involving a court. However, lawsuits of this kind are not always satisfied (legislation excludes the possibility of unilateral termination of the lease agreement, but since the discretion allows the subject to independently dispose of his rights, this is permissible), therefore, before entering into an agreement, you should make sure of the good faith of the other party.