According to Article 271 CO, the landlord must terminate the lease contract in good faith. The landlord must provide the reasons for termination upon the tenant's request.
Annulability of Termination
A termination can be annulled under the cases specified in Article 271a CO. This article provides a non-exhaustive list of situations where the landlord abuses their termination power.
A tenant who wishes to contest the termination must file with the conciliation authority within 30 days of receiving the termination notice (Article 273 Paragraph 1 CO).
Two categories of terminations can be distinguished: sanction terminations and pressure terminations.
Sanction Terminations
A sanction termination occurs following a dispute with the tenant.
The termination is voidable when the tenant has exercised their rights, for example, after requesting renovations, and subsequently receives a lease termination notice (Article 271a Paragraph a CO).
It is also considered a sanction termination when the termination occurs during conciliation or judicial proceedings related to the lease (Article 271a Paragraph d CO). If the conciliation or proceedings end unfavorably for the landlord, the termination cannot occur within three years from the end of the trial (Article 271a Paragraph e CO).
Pressure Terminations
A pressure termination aims to coerce the tenant into modifying the contract.
An example of this is a termination for sale, where it can be suspected that the landlord uses the termination as leverage to compel the tenant to purchase the property (Article 271a Paragraph c CO).
A modification termination is also voidable. This occurs when there is suspicion that the landlord uses the termination to force the tenant to modify the contract, particularly to increase the rent (Article 271a Paragraph b CO).
Exceptions
Article 271a Paragraph 3 CO provides some exceptions to the annulability of the termination.
The termination is no longer voidable, even if it could be associated with an abuse case, particularly when the tenant is in default or the landlord urgently needs the property for themselves or close relatives (siblings, parents, and children) or for an in-law (spouse, brother-in-law, and sister-in-law).
Lease Extension
If the termination is not abusive and meets legal forms, a lease extension can be alternatively requested under Article 272 CO. The competent authority must automatically rule on a lease extension when the tenant’s request for annulment of the termination is denied.
Article 272 CO invites the judge to weigh the interests between the landlord's interest in terminating the lease and the tenant's interest in extending it.
A lease extension is possible when it creates an intolerable situation for the tenant. This is the case, for example, when the tenant suffers from an illness preventing them from searching for a new home, has school-aged children, making moving problematic, or has difficulty finding a commercial space and risks bankruptcy.
Additionally, there should be no overriding interest of the landlord, particularly related to their family and financial situation. However, even if the landlord claims personal need for the property, the tenant can still request an extension to find new accommodation within a reasonable period.
The local real estate market situation also factors into the balance of interests.
Exceptions
Article 272a CO lists some exceptions to the lease extension.
The lease cannot be extended, among other reasons, when the tenant is in default, bankrupt, or has violated their duty of care.
Procedure and Duration of an Extension
To request a lease extension, the tenant must file with the conciliation authority within 30 days of receiving the termination notice for an indefinite lease and no later than 60 days before the contract expiration for a fixed-term lease.
A second lease extension is possible, provided the tenant has taken all steps to remedy their situation and has filed with the conciliation authority no later than 60 days before the expiration of the first request.
The lease can be extended for two years or twice for two years for a residential lease and a maximum of six years for commercial leases.
If you would like more information on this subject, the Valentin Legal Consultation will be happy to welcome you at its premises located at rue du Valentin 1, 1004 Lausanne, to provide you with more complete answers. We are also reachable by phone at 021 351 30 00 and by email at info@cjdv.ch.
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