Terminate a commercial lease

Verified 06 June 2025 - Directorate of Legal and Administrative Information (Prime Minister), Ministry of Justice

The lessee (called lessee) and the landlord (called lessor) each have the option of terminating the commercial lease at the end of each three-year period (i.e. after 3, 6 or 9 years) or outside these periods, under specific conditions. They also have the option of terminating the lease by mutual agreement.

Tenant

The lessee may terminate the lease without special reason at the end of each three-year period (i.e. after 3, 6 or 9 years). We're talking about three-year termination.

It may also terminate the lease, outside these three-year periods in certain situations: when he has applied for his pension rights, or when he is receiving a disability pension. In the event of the death of the tenant, its assigns may also terminate the lease.  The parties may also terminate the lease by mutual agreement.

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Every three-year period (3 years)

The tenant can terminate the commercial lease at the end of each 3-year period, without any particular reason.

The employee shall grant leave by one of the following means:

  • Either by act of commissioner of justice (formerly act of bailiff)
  • Or by registered letter with notice of receipt.

Leave must be given at least 6 months before the expiry of the current three-year period.

Failure to comply with this 6-month deadline postpones the effects of the leave to the next three-year period.

Example :

A three-year commercial lease expires on September 30. The leave must therefore be sent by the tenant to the landlord by March 31.

The lessor and the lessee may decide to exclude the possibility of a three-year termination in the following lease agreements:

  • Leases older than 9 years (for example, leases between owners and operators of vacation homes)
  • Leases of premises intended for the exercise of a single activity
  • Leases of premises for the exclusive use of offices
  • Leases of storage premises (i.e. warehouses).

FYI  

The tenant does not have to indicate in the leave why he wants to terminate the lease.

Outside triennial periods (3 years)

It is possible to terminate the lease in the following situations:

Termination by the tenant who has retired or received an invalidity pension

The lessee may terminate the commercial lease without waiting for the expiry of the three-year period only if it has :

  • Merchant (sole trader)
  • Majority manager for at least 2 years of the SARL: titleContent holder of the lease
  • Unique partner of a EURL: titleContent.

It must be in one of the following situations:

  • Either to have asked for to enjoy his rights at the retreat.
  • Either to have been admitted to profit a disability pension during the lease.

If the tenant meets these conditions, he can then give lessor's leave.

Leave shall be granted at least 6 months in advance, by registered letter with request for notification of receipt or by document of Commissioner of Justice (formerly a bailiff).

Termination by the lessee in case of non-compliance of the lessor with the obligations of the lease

The tenant may request the judicial termination the lease in the following situations:

  • Non-compliance by the lessor of the commercial lease obligations:for example, the lessor did not pay for major repairs such as major construction works
  • Issuance of a space that does not conform to its intended purpose as it does not comply with fire safety standards

This must be requested from the court of law location of the building.

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The judge has discretion and orders termination where the breach is of a certain gravity.

Termination of heirs in the event of the death of the tenant

In case of death of the tenant, the lease is not automatically terminated (unless a clause in the contract so provides). The lease is passed on to the heirs. These may terminate the lease without waiting for the three-year deadline by sending a leave of absence by registered letter with AR or by act of Commissioner of Justice.

Termination by mutual agreement with the lessor

The tenant can agree with the landlord to terminate the lease at any time. This is called amicable termination the lease agreement.

Amicable termination does not require any particular form. The landlord simply has to accept the tenant's offer of amicable termination.

However, you have to be able to bring back the proof of this agreement.

In practice, the landlord and tenant are advised to sign an act which sets the date of the release of the premises and fixes the balance of the rent, the charges and the fate of the security deposit.

In addition, the lessor in agreement with the lessee must check with the registry of the commercial court whether there are entries on the goodwill (privilege, pledge). If this is the case, the owner must inform (by registered letter with AR or by deed of Commissioner of Justice) creditors registered on the fund (who have a lien on the goodwill or a pledge) of the amicable termination of the lease.

The amicable termination will not become final only 1 month after notification to registered creditors.

Lessor

The lessor may terminate the commercial lease after each three-year period ("triennial") under certain conditions. Outside these three-year periods, he may terminate the lease in the event of the lessee's fault or if this possibility is provided for in the contract (termination clause). The parties may also terminate the lease by mutual agreement.

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Every three-year period (3 years)

At the end of a three-year period, the lessor has the right to take over the leased premises. He must then give the tenant leave 6 months before the three-year deadline by act of commissioner of justice (formerly act of bailiff).

Termination is possible in the following cases:

  • Take-over to build or demolish and rebuild the building in which the rented premises are located. A lessor who builds or rebuilds a new building must provide a replacement space to the lessee or pay a eviction allowance.
  • Take-back for real estate restoration works in remarkable heritage sites requiring evacuation of the premises. To facilitate real estate restoration work, the lessor may recover the lease at the end of a three-year period by paying an eviction allowance if the building is located in a safeguarded area.
  • Resumption of a dwelling space rented as an ancillary part of the commercial premises and which is not occupied. The following 3 conditions must be met:
    • The living quarters shall be divisible from the commercial quarters.
    • The premises taken over shall not be used for hotel, furnished accommodation, hospital or educational purposes.
    • Deprivation of use shall not cause serious disturbance to the exploitation of the goodwill.

    The return is only possible if the tenant still does not occupy the accommodation for a period of 6 moissite after the leave granted by the lessor.
  • Conversion of an existing complex into a principal-use residential complex by reconstruction, renovation or rehabilitation. The lessor recovers the commercial premises for work and pays an eviction allowance to the tenant.

Outside triennial periods (3 years)

The lessor may apply to the court for the termination of the lease in the event of fault on the part of the lessee or use the termination clause.

Termination sought in court

The lessor has the option to seek termination of the commercial lease from the court in the event of tenant's fault.

These include, for example:

  • Lack of insurance
  • Sub-leasing of premises without owner's authorization
  • Non-exploitation of trade
  • Non-payment of rent

The court assesses the importance of the lessee's fault in accepting or refusing the lessor's request for termination.

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Termination under the lease (in a rescission clause)

The contract may provide that failure to perform a specified obligation will result in the termination of the lease: rescission clause.

Example :

A clause in the commercial lease prohibits the tenant from subleasing the land. If the lessee subleases the premises, the lessor may rely on the termination clause to request the termination of the lease.

To implement this clause, the owner must send, by deed of Commissioner of Justice (formerly a bailiff), a command which informs the tenant that he will use the cancelation clause.

The command must mention the following:

  • Acts of which the tenant is accused (e.g. tenant who does not operate the goodwill)
  • Command to cease non-compliance with the lease
  • Mention of a 1-month period to ensure that the tenant fulfills the landlord's request and meets his obligations.

If the lessee performs what is requested in the order, the lease is not terminated.

However, if the tenant does not comply with the request, the lease is automatically terminated. It is effective 1 month after the sending of the command to pay or the summons to execute.

FYI  

In the case of an order to pay late rents, the tenant can ask in court for payment delays within the limit of 2 years.

Termination by mutual agreement between the tenant and the lessor

The lessor and the lessee may decide by mutual agreement to terminate the lease at any time. This is called amicable termination the lease agreement.

Amicable termination does not require no particular shape. The tenant simply has to accept the landlord's offer of amicable termination.

In practice, the lessor and the tenant are advised to sign a document which specifies the date of release of the premises and which fixes the balance of the rent, the charges and the fate of the deposit

In addition, the lessor in agreement with the lessee must check with the registry of the commercial court whether there are entries on the goodwill (privilege, pledge, etc. ). If so, the lessor must inform (by registered letter with AR or by an act of the Commissioner of Justice) creditors registered in the fund the amicable termination of the lease.

The amicable termination will not become final only 1 month after notification to registered creditors.

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