Contractual freedom allows each party the ability to terminate a lease contract by respecting the notice periods and legal terms, or if applicable, the periods or terms agreed upon by the parties.
However, the law provides for the annulment of a termination notice if it contravenes the principles of good faith (Art. 271 para. 1 CO).
It is possible, and even recommended, to request the reasons for the termination notice, which allows one to determine if it is an abusive termination, and therefore subject to annulment.
When the termination is given by the landlord, Article 271a para. 1 of the Code of Obligations provides a non-exhaustive list of various cases that justify a tenant's request for annulment of the termination notice, including:
When the tenant asserts in good faith claims arising from the lease;
When the termination is given to impose a unilateral modification of the lease unfavorable to the tenant or a rent adjustment;
To compel the tenant to purchase the rented apartment;
When the termination is given during a conciliation or judicial procedure related to the lease, unless the tenant acts in bad faith;
When the termination is given less than three years after the end of a conciliation or judicial procedure regarding the lease and if the landlord: largely failed in their claims; abandoned or significantly reduced their claims or conclusions; waived the right to take the case to court; or reached a settlement or agreement with the tenant.
When the termination is given due to changes in the tenant's family situation, without causing major inconveniences to the landlord.
However, even if a conciliation or judicial procedure is ongoing, or if the three-year period following it has not yet expired, the termination will not be annulable if one of the reasons stated in Article 271a para. 3 applies, such as the landlord or their close relatives urgently needing to use the premises, the tenant's residence, or for justifiable reasons.
The challenge to the termination notice must be addressed to the conciliation authority (in the canton of Vaud, this is the prefectural conciliation commissions) within 30 days following the receipt of the termination notice (Art. 273 para. 1).
If the request for annulment of the termination notice is denied, the conciliation authority will automatically examine whether the lease can be extended (Art. 273 para. 5 CO).
Lease Extension
If the annulment of the termination notice is denied, the tenant may request an extension of the lease if the termination of the contract results in severe consequences for them or their family (Art. 272 para. 1 CO).
The request must be submitted to the conciliation authority, which, to make a decision, will weigh the interests of the landlord and the tenant and examine various factors, such as the personal and financial situation of the parties, the duration of the lease, and the local housing market situation, among others (Art. 272 para. 2 CO).
For an indefinite lease, the request for extension must be submitted within 30 days following the receipt of the termination notice. For a fixed-term lease, it must be submitted no later than 60 days before the contract expires (Art. 273 para. 2 CO).
The extension of the lease is excluded in the following cases (Art. 272a para. 1 and 2 CO):
In the event of the tenant's default;
For serious violation by the tenant of their duty of care or for serious disregard for neighbors;
In the event of the tenant's bankruptcy;
If, in anticipation of transformation or demolition, the lease contract was expressly concluded for a period expiring at the beginning of the work or upon receipt of the required authorization;
When the landlord offers the tenant equivalent residential or commercial premises.
Do you wish to have more information on this matter? Our team of professionals will be happy to welcome you at our offices located at 1 Rue du Valentin, 1004 Lausanne, to advise and assist you in your legal procedures. We are also reachable by phone at 021 351 30 00 and by email at info@cjdv.ch.
[1] This is the case when the termination does not correspond to any objective, serious, and legitimate interest, is purely vexatious, or results in a manifest disproportion of the interests at stake (ATF 140 III 496, para. 4.1).
[2] There is a conciliation commission in each district. The location of the property determines the prefecture to which the conciliation request must be addressed.
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