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
