Cancel before the expiry date?

Cancel before the expiry date?

"I am the tenant of premises in Geneva where I carry on my professional activity. Following termination of the lease by the landlord, I applied to extend the contract, which was extended for three years by agreement. I would now like to terminate the contract before the end of these three years. Is this possible and how soon?

Jean, Carouge

Commercial or residential leases entered into for a fixed term automatically terminate on expiry of the term for which they were entered into, while those entered into for an indefinite term may be terminated by the lessor or lessee, subject to compliance with legal or contractual terms and conditions. Where fixed-term leases are tacitly renewed, they are transformed into open-ended leases.

With regard to commercial leases in particular, i.e. leases relating to premises used for carrying on a professional activity, notice of termination must be given in writing to the lessor, observing the statutory notice period of six months for the end of a lease quarter from the start of the contract. A lease commencing on 1 February may therefore be terminated on 30 April, 31 July, 31 October and 31 January. It should be noted that the parties have the option of stipulating a longer period, different for each of them, in the lease contract.

When a fixed-term commercial lease comes to an end, or when the landlord terminates the contract for an indefinite period, the tenant may, under article 272b of the Swiss Code of Obligations, apply to the conciliation authority to have the lease extended for a maximum of six years. Under article 272c of the Swiss Code of Obligations, the parties then have the option of requesting the court to amend the terms of the original lease, in particular with regard to the notice period and term, failing which the terms of the original lease will apply. If there is no decision or agreement between the parties on this point, article 272d CO provides that if the contract is extended and if the extension is for more than one year, the tenant may terminate the contract by observing a notice period of three months for a legal term, i.e. in Geneva, for the end of a quarter from the start of the extension.

You can terminate your lease before the end of the three-year extension period by sending a registered letter to your landlord. As far as the notice period is concerned, you should first refer to the extension agreement and the initial lease agreement. If neither the lease extension agreement nor the initial contract stipulate a notice period, you must observe the legal three-month notice period for the end of a lease term.