Duration of the agreement

A real estate leasing agreement is always finalised for a specific contracted duration. Because of the considerable investment and the preloaded incurred interest and amortisation, a real estate leasing agreement basically cannot be terminated. The fixed agreement duration can be for 10, 20 or 30 years. On the basis of the agreement elements and the duration, a real estate leasing agreement is considered a permanent debt relationship. With the expiration of the agreement duration, the leasing relationship between the lessor and the lessee is ended.

The agreement duration is differentiated as follows:  

ordinary leasing duration

  • =  fixed life
  • exception
    • termination right in favour of the lessee
  • at the end of the life, the lessee can choose
    • return the leasing property to the lessor
    • alternatively
      • purchase the leasing property
      • extension leasing agreement

extraordinary leasing duration

  • =  premature termination for important reasons
  • reasons for premature termination
    • non-payment of leasing payments
    • (serious, repeated and continuous despite reminders from the lessor) violation of other obligations from the leasing agreement by the lessee


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