Legal Procedures for Early Termination of a Lease Contract in Saudi Arabia

Introduction:
Lease contracts bind both the landlord and tenant to clear obligations. However, unforeseen circumstances may require ending the contract early. So, is it legally possible to terminate a lease before its end date? What conditions apply? In this article, we explain the key legal steps for early termination of a lease agreement in Saudi Arabia.

Can a Lease Be Terminated Before Its Expiration Date?

Yes, but not automatically. It must be done under specific conditions stated in the contract, by applicable legal provisions, or through mutual agreement between both parties.

When Is It Legal to Terminate a Lease Early?

• A clear clause in the contract allows early termination — e.g., “Either party may terminate the contract with a 30-day notice.”
• Violation of contract terms — such as delayed rent payments or landlord negligence in maintenance.
• Property damage making it uninhabitable — e.g., structural faults or major safety hazards.
• Force majeure or unforeseen events — such as government orders, natural disasters, or mandatory job relocation.

How to Legally Terminate a Lease Contract?

1. Review the Lease Agreement: Check for any clauses related to termination, notice period, penalties, etc.
2. Send an Official Notice: Preferably in writing and documented (via email, formal letter, or Ejar platform record).
3. Document the Reason: Provide evidence of damage, non-compliance, or other valid grounds using official documents.
4. Submit a Termination Request via Ejar: If the lease is registered on the Ejar platform, you may apply for “termination with valid reason.”
5. Resort to Court in Case of Dispute: If the other party refuses termination, file a case with the General Court or Enforcement Court.

Is There a Penalty for Early Termination?

It depends on the lease agreement. If a penalty clause or compensation for early exit is included, the terminating party may be legally obligated to pay the specified amount.

What About the Remaining Rent Payments?

• If both parties agree to terminate, rent is calculated up to the date of vacating.
• Without mutual agreement, the tenant may be required to pay the remaining or partial rent — depending on the contract.

Does This Apply to Commercial Lease Contracts Too?

Yes, but commercial leases are usually more detailed. It’s strongly advised to include flexible termination clauses with advance notice to avoid future disputes.

Neither party can unilaterally terminate a lease without a valid reason or mutual agreement. Following the legal process ensures protection for both sides. Documenting the notice, providing valid evidence, and using official government platforms like Ejar reduces disputes and ensures legal security.

Need Legal Advice? Contact us to assess your case and guide you through the proper legal process.