Dissolution of Rental Agreement: Step-by-Step Procedure
Dissolution of a rental agreement means that the agreement between landlord and tenant is terminated before the agreed end date is reached. This can occur by means of a notice of dissolution, a mutual agreement between the parties or a court decision. The procedure varies depending on the situation and is governed by the **Rental Act 2015** and the **Dutch Civil Code (DCC)**. In this article, we explain step by step how you, as a tenant or landlord, can dissolve a rental agreement, what rights and obligations you have, and what steps you need to take.
What is dissolution of a rental agreement?
Dissolution of a rental agreement means that the agreement between tenant and landlord is terminated before the original end date is reached. This can happen in various ways, for example:
- Due to force majeure: For example, in case of necessary renovation or if the tenant loses their job and can no longer pay.
- Due to fault of the other party: For example, if the landlord fails to maintain or the tenant fails to pay rent.
- Mutual agreement: If both parties agree to the dissolution.
- Judicial dissolution: If the court dissolves the agreement at the request of one of the parties.
The procedure varies depending on the situation. In many cases, you must first issue a notice of dissolution and subsequently, if necessary, file a claim for dissolution with the court. The **Rental Act 2015** (Article 7:278 DCC) regulates the possibilities and conditions for dissolution.
Legal basis
The main legal grounds for dissolution of a rental agreement are:
- Dutch Civil Code (DCC), Book 7: Lease:
- Article 7:278 DCC: Dissolution by the landlord in case of non-payment of rent.
- Article 7:280 DCC: Dissolution by the tenant due to lack of enjoyment of use.
- Article 7:281 DCC: Dissolution due to force majeure.
- Rental Act 2015:
- Article 7:290 DCC: Procedure for dissolution due to fault of the other party.
- Article 7:291 DCC: Procedure for dissolution due to force majeure.
When is dissolution possible?
Dissolution is possible in various situations. Below is an overview of the most common cases:
| Situation | Legal basis | Who can dissolve? |
|---|---|---|
| Non-payment of rent (2+ months arrears) | Article 7:278 DCC | Landlord |
| Lack of enjoyment of use (e.g., poor maintenance) | Article 7:280 DCC | Tenant |
| Force majeure (e.g., necessary renovation) | Article 7:281 DCC | Landlord |
| Breach of rental agreement (e.g., unreasonable behaviour) | Article 7:290 DCC | Landlord or tenant |
| Mutual agreement (e.g., both parties want to terminate) | Article 7:270 DCC | Both parties |
Step-by-step plan: how to dissolve a rental agreement?
The procedure for dissolution depends on the situation. Below are the most common steps for the main cases.
1. Dissolution by the landlord (in case of non-payment)
If the tenant fails to pay rent, the landlord can dissolve the agreement. This proceeds in several steps:
- Establish arrears: The landlord must first establish that there is an arrears of two or more months rent.
- Notice to pay: The landlord must summon the tenant in writing to settle the arrears within 14 days (Article 7:278 paragraph 2 DCC).
- Notice of dissolution: If the tenant does not pay, the landlord can issue a notice of dissolution. This must be in writing and clearly state the reason for dissolution.
- Claim for dissolution: If the tenant still does not pay after the notice of dissolution, the landlord can file a claim for dissolution with the district court judge.
- Court decision: The court decides whether the rental agreement is dissolved. If the court rules in favour, the agreement ends on the date set by the court.