Ending the tenancy I

Termination by the tenant

• Open ended contract (if existing): under what conditions and in what form may the tenant terminate the tenancy?

In the case of open ended contracts, either of the parties may terminate the contract until the 15th day of the month, to take effect on the last day of the following month. In case the termination does not respect this deadline, the tenancy relationship shall be regarded terminated on the last day of the second month following the termination.

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• Under what circumstances may a tenant terminate a tenancy before the end of the rental term (e.g. unbearable neighbours; bad state of dwelling; moving for professional reasons)?

Hungarian tenancy law does not address the right of termination of the tenant in the case of time limited tenancy agreements. The parties may define the relevant conditions in the tenancy agreement and it is indeed common and recommended to do so.

Furthermore, in line with the rules on warranty, if the landlord does not make sure that the dwelling corresponds to the provisions of the contract and he defect is significant, the tenant is entitled to terminate the agreement. Difficulty with the neighbours would most probably not qualify for such a defect. The bad state of the dwelling, however, may lead to justified termination under the warranty rules.

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• May the tenant leave before the end of the rental term if he or she finds a suitable replacement tenant?

Hungarian tenancy law does not provide for this option. Parties may however include such clause in the tenancy agreement. In lack thereof, the issue would be subject to the negotiation of the parties. This means that even if the tenant finds a suitable replacement tenant, in the absence of relevant contract provision, he/she may only leave earlier if the landlord agrees.