Can the lease be automatically renewed after the rental period ends?
Time:
2022-08-19
Zhao rented a shop on Xinhua Road, and at that time, he agreed with the owner that the lease period would be from April 2007 to July 2007. After the contract expired, Liu did not sign a new lease with the owner but continued to use the shop for nearly four months and paid rent. Now Liu has decided not to rent this shop anymore, but the owner requires Liu to find someone to sublet; otherwise, the 50,000 yuan deposit will not be refunded. So, is there a provision for automatic renewal in the law? If Liu cannot find someone to rent this shop, does the owner have the right to withhold Liu's deposit?
There is no provision for automatic renewal in our country's law. When the lease period expires and both parties have not clearly agreed on the lease term, the lease term is considered an indefinite lease.
According to Article 232 of the Contract Law, "If the parties have not agreed on the lease term or the agreement is unclear, and it still cannot be determined according to Article 61 of this law, it is deemed an indefinite lease. The parties may terminate the contract at any time, but the lessor must notify the lessee in advance within a reasonable period before terminating the contract."
It can be seen that after the lease contract between Zhao and the owner expired, and he continued to pay rent and use the shop, the lease contract has automatically converted to an indefinite contract. According to the law, the owner has the right to terminate the lease contract at any time and require Zhao to vacate the shop, but must give Zhao necessary preparation time; Zhao also has the right to terminate the lease contract at any time but must notify the owner in a timely manner. After terminating the lease contract, Zhao has no obligation to find a new tenant for the owner. As for the owner's withholding of Zhao's deposit, there is neither contractual basis nor legal support for it, and the owner should fully refund the deposit to Zhao; otherwise, Zhao has the right to sue the court to recover the deposit.