Causes for Termination of Housing Lease
Expiration of lease- If a lease period has been fixed, the lease shall be terminated at the time when the lease period expires.
- Where there is any cause for rescission such as if a lease period has been fixed, if a special stipulation for the retention of the right of rescission has been made, if the lessee has been declared bankrupt, etc., the lease contract may be rescinded during the term of the contract through a notice of rescission of the contract (Articles 636 and 637 of the Civil Act).
- If the lessor has notified the lessee of a refusal of the renewal, or has given notification to the lessee to the effect that he/she would not renew the contract without any change in the condition, 6 months to 2 month before the term of the lease expires, the lease contract shall be terminated at the time when the lease period expires (Article 6 (1) of the Housing Lease Protection Act).
Notice of rescission of contract- If a lease contract is renewed by implication, the lessee may rescind the contract at any time. If the lessee notifies of rescission of the contract, the termination shall enter into force upon the lapse of 3 months from the date when the lessor has received the notification (Articles 4 (1) and 6-2 of the Housing Lease Protection Act).
- Where the lessee or lessor has made a special stipulation for the retention of the right of rescission when concluding a lease contract, he/she may rescind the lease contract during the term of the contract after proving the unavoidable cause, notwithstanding the fact that lease contained a fixed period of rental. In such cases, the lease shall be rescinded upon the lapse of 1 month from the date when the lessor has received the notification of rescission (Articles 635 and 636 of the Civil Act).
Lessee's bankruptcy- If the lessee has been declared bankrupt, either the lessor or the bankruptcy trustee may give notice to rescind the lease for the future with respect to the remaining unexpired term, notwithstanding the fact that the lease contained a fixed period of rental. In such cases, the lease shall be terminated upon the lapse of 6 months from the date when the lessee has received the notification of rescission (Article 637 (1) of the Civil Act).
- In such cases, neither party may claim damages arising from the rescission of the lease for the future with respect to the remaining unexpired term (Article 637 (2) of the Civil Act).
Immediate rescission- If falling under any of the following causes for rescission, a lease contract may be rescinded during the term of the contract, notwithstanding the fact that the lease contained a fixed period of rental. In such cases, the termination shall enter into force when the declaration of intention for rescission of one party reaches the other party.
· Cases where the lessee may rescind a lease contract:
√ If the lessor performs an act of preservation against the will of the lessee and the lessee is thereby incapable of attaining the objective for which the lease has been obtained (Article 625 of the Civil Act);
√ If part of the leased house has become unusable, or has become impossible to take profit from, due to loss or any other cause other than the fault of the lessee, and the remaining part of the leased house is not sufficient to enable the lessee to attain the objective for which the lease has been made (Article 627 of the Civil Act);
√ If the status of the lessor has been assigned (Supreme Court Decision, September 4, 1998, 2001 Da 64615).
· Cases where the lessor may rescind a lease contract:
√ If the lessee assigns his/her right of lease or subleases the leased house without the consent of the lessor (Article 629 (2) of the Civil Act);
√ If the lessee falls behind with the rent by up to two installments (Article 640 of the Civil Act and Article 6(3) of the Housing Lease Protection Act);
√ If the lessee does not use and take profits from the leased house in such a manner as determined by the contract or by the nature of the house (Application of Article 610 (1) of the Civil Act under Article 654 of the same Act);
√ If the lessee seriously violates obligations under the lease contract.