Irrevocable lease: What are the rules?

Irrevocable lease: What are the rules?

Irrevocable lease: What are the rules? - Digura.dk

Most often, leases are terminable, but some are actually irrevocable for various reasons. When can a lease be irrevocable and if it is the case – don’t you have the opportunity to terminate? We will teach you the rules about an irrevocable lease! 

The basis about leases

Leases are usually terminable according the rules in the rent act. Therefore you basically always have the right to terminate your tenancy if you want to move out. Your landlord must have a very good reason to be able to terminate your lease. 

What is an irrevocable lease?

An irrevocable lease is an agreement between the landlord and the tenant that the tenancy can’t be terminated for a certain period.

Thus, if irrevocability has been agreed for 12 months, the lease cannot be terminated during the first 12 months of the lease period. In case the lease is dated to a 12 months period, the lease will automatically be terminated after the 12 months.

If the rental period continues after the irrevocability period is over, the tenancy will continue. If nothing has been agreed on termination in the lease, the lease can be terminated with the normal termination rules in the rent act. In that case you have a notice period of three months. 

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Why should you get help from DIGURA?

Every month, we help thousands of tenants both via our membership solution and our case processing. When we process the cases, we achieve a positive result for the tenants in 98% of the cases. We are here to help you who are potentially being deceived by your landlord, and you who actually want to keep the money you are entitled to.

When can a lease be irrevocable?

A landlord can legally make a lease irrevocable. However, the terms must be reasonable. If they are not, you can object. 

Temporary leases are often irrevocable because it’s the starting point in the rent act. A lease can be temporary subleased for a period for instance because the sublessor wants to go on a stay abroad. 

It isn’t a requirement that the sublease needs to be irrevocable. The normal rules for termination can also apply. 

So what is the difference between a temporary lease and an irrevocable lease? A temporary lease typically ends when the agreed period is over. An irrevocable lease continues after the irrevocable period. 

Are you bound in the lease if it is irrevocable?

If the lease is irrevocable, it cannot be terminated during the irrevocability period. However, the irrevocability period will end by itself, as irrevocability can not be agreed for very long periods.

If the landlord or the tenant violate the lease, it can be bought to an end. As a tenant you don’t need to be bound to the lease if the landlord for instance doesn’t maintain the tenancy. A landlord don’t need to be bound to the lease either if you for instance doesn’t pay the rent on time. 

However, if a party breaches the lease, it may be terminated even though it was irrevocable. It is not the intention that you as a tenant / landlord should be bound by a lease if the other party e.g. does not perform necessary maintenance or pay its rent on time. In these cases, a non-cancellable lease can thus be terminated if the breach of the lease is significant enough.

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When can I terminate an irrevocable lease?

Okay, the headline seems a bit self-contradictory. 

If a lease is irrevocable for a small period, e.g. 12 months, you can’t terminate the lease in the first 12 months. If you have a three months’ notice period, you can terminate the lease after the 12 months. If you have an irrevocable period starting from 1st of May till 30th of April, you are able to terminate the lease the day after the last day you were bound. You can terminate your lease 1st of May. If you choose to, you have to move out 31st of August. It is because your notice period is three months plus the current month. Therefore, you will have to stay in the tenancy for at least 16 months.

A condition that the lease is irrevocable for 12 months can be quite burdensome for the tenant. Therefore, if you are not sure that you will be bound for a long time, you should strongly consider whether you should enter into an agreement on a irrevocable lease. Especially young people in the big cities are most often seen to have a tendency to move regularly. Unfortunately, it is also often young people who get caught up in these irrevocable leases.

Get legal advice and avoid being deceived

This topic can be very complicated as a tenant. The above is to be seen as a general guidance and not as downright legal advice. We always recommend that you contact us to ensure that you get the proper necessary legal advice that is relevant for your specific case.

You can get help with this topic but also any other matters you may have. Unfortunately, we see many tenants that are being deceived. Often, they miss out on a lot of money – anything from a couple thousands to 30-40,000 kroner. Imagine what else you could spend the money on.

Let us help you

At DIGURA we are always available and easy to reach, you have your own legal advisor, and best of all you only pay if we win your case. Therefore, it is risk free for you to get help from us.

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If you are unsure about anything in the article, our team is ready to help in the chat. You can find the chat in the bottom right corner.

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