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Terminating A Rental Agreement
I have been asked by several Rental agents to share information on rental issues. Since we may represent a Seller who wants to sell his property, but has a tenant in place, I thought the following information would be useful to both Sales Agents and Rental Agents. The following is taken from the Delaware Landlord Tenant Code.
- Term. (§5106)
The term of the rental should be set out in the rental agreement. No rental agreement can be effective for a term longer than one (1) year unless it is in writing.
- Notice of termination. (§5106)
The landlord or the tenant must give a minimum of sixty (60) days written notice to the other party if either intends to terminate an existing rental agreement. If the rental agreement is for more than a month-to-month period, the notice must be given at least sixty (60) days prior to the expiration of the rental agreement. If the agreement is on a month to month basis, the sixty (60) day notice will be effective sixty (60) days from the first day of the month following the day actual notice is given. The notice must indicate that the rental agreement will terminate upon its expiration date.
If a tenant rejects a notice of renewal of the rental agreement with changes sent by the landlord under §5107, that rejection will be treated as an effective termination notice.
- What if termination notice is not given? (§5108)
If the landlord fails to give the sixty (60) days notice or the tenant fails to give forty-five (45) days notice to terminate the rental agreement the rental agreement continues as a month-to-month rental agreement and all other terms of the agreement remain in effect.
- Tenant's ability to terminate early. (§§ 5302 5304 5308 5309 5314)
In addition to the reasons previously set forth for a tenant's early termination of the rental agreement, the Code also allows a tenant to terminate, under certain circumstances, after giving thirty (30) days written notice. The thirty-day period shall begin on the first day of the month following the day of actual notice.
A tenant may terminate a rental agreement early, that is before its expiration date, by giving the landlord thirty (30) days written notice if:
- The tenant is required by his or her current employer to move a distance of more than (30) thirty miles;
- The serious illness of the tenant or a member of the tenant's immediate family who lives with the tenant requires the tenant to move on a permanent basis;
- The tenant is accepted for admission into a senior citizens' facility or a group facility or
retirement home;
- The tenant is accepted for admission into a rental unit subsidized by a governmental or private
non-profit corporation, including subsidized private or public housing;
- The tenant, after the execution of the rental agreement, enters the military service of the United States on active duty;
- The tenant dies, in which case the surviving spouse or the personal representative of the estate of the tenant may terminate;
- The tenant is the victim of domestic abuse, sexual offenses or stalking, or the tenant has or is seeking relief from domestic violence or abuse from a court, police agency or domestic violence
service or program.
When in doubt, check with a full time, professional Rental Agent. They will have up-to-date information, including any changes that may have been made to the Code.
I hope this helps us all.
See you next week.
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