Mutual Agreement to Terminate Lease: jointly ending the lease agreement
Mutual agreement is a way in which both the tenant and the landlord can terminate a lease agreement without a formal notice of termination. Instead of having to wait for a notice period, both parties can agree to an immediate termination of the lease. This can be convenient if, for example, the tenant has found a new home or the landlord wants to use the property themselves. In this article, we explain how mutual agreement works, what the legal basis is and which steps you must follow.
What is mutual agreement?
With mutual agreement, the tenant and the landlord make an agreement to terminate the lease agreement without a formal notice being required. This means that both parties agree that the agreement does not need to continue. It is a voluntary agreement and no reason is needed for terminating the lease, unlike with a notice of termination (for example due to force majeure or fault of one of the parties).
Mutual agreement is not legally binding on either party. It is an informative agreement that can be recorded both orally and in writing. However, for legal certainty, it is always advisable to record the agreement in writing.
Legal basis of mutual agreement
The possibility to terminate a lease agreement by mutual agreement is not explicitly laid down in the Housing Lease Act (Whw) or the Civil Code. It is a legal principle that follows from contractual freedom (articles 6:227 and 6:228 Civil Code). This means that parties are in principle free to make agreements that are not contrary to the law.
However, the agreement must not conflict with other statutory provisions, such as:
- The notice rules from the Whw (for example, the minimum notice period of 1 month for a residential lease agreement).
- The protection of the tenant against arbitrary termination (article 7:270 et seq. Whw).
- The requirements for a valid notice, such as providing a notice document (article 7:273 Whw).
If the agreement is voluntary but, for example, the tenant is in the protection period (the first 5 years for a residential lease agreement), the landlord cannot unilaterally terminate the lease. Even in that case, mutual agreement can offer a solution, provided both parties agree.
Practical examples of mutual agreement
Mutual agreement can play a role in various situations. Here are some examples:
| Situation | Tenant | Landlord | Solution via mutual agreement |
|---|---|---|---|
| Tenant finds a new home | Does not want to wait for the notice period | Sees no objection to quick termination | Parties agree on immediate termination without notice period |
| Landlord wants to use the property themselves | Agrees to quick termination | Does not want to serve formal notice | Parties agree that the lease ends immediately |
| Tenant and landlord want to avoid conflict | Finds the lease term too long | Sees no benefit in a long lease agreement | Agree to terminate the lease as per agreement |
Rights and obligations under mutual agreement
Under mutual agreement, the following rights and obligations apply to both the tenant and the landlord:
Rights of the tenant
- No need to wait for notice period: The tenant does not have to wait for the statutory notice period (e.g. 1 month) if both parties agree.
- No reason needs to be given: Mutual agreement requires no motivation, unlike a formal notice.
- Written confirmation: The tenant can be assured of a clear agreement on termination, providing legal certainty.
Obligations of the tenant
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