An “Option” to Extend a Contract | Rented property | Ask the Rabbi - SHEILOT.COM

An “Option” to Extend a Contract

Question

When a rental contract includes an "option," what is the halachah when the tenant wants to stay and the landlord wants him to leave the apartment?

Does this depend solely on the tenant’s wishes,
meaning that the tenant has the right to stay and the landlord has no right to remove him,

or perhaps it depends on the landlord’s wishes,
and if the landlord does not want to continue the rental, the tenant cannot continue.


1. When a rental contract includes an "option," what is its meaning?
Is its meaning
that the tenant has the right to choose whether to stay or leave as he wishes, and the landlord has no right to remove him when the tenant wants to stay?
Or perhaps it depends on the landlord’s wishes, and if he does not want to continue the rental, the tenant cannot continue against the landlord’s wishes.

2.
If we say that it depends solely on the tenant’s wishes:
If he wishes, he may stay despite the landlord’s objection.
And if he wishes, he may leave despite the landlord’s objection.

Below is the wording of clause 9 in the contract:
"9.
There is an option to extend the contract for an additional one-year period,
the rent in the second year will increase according to __________ as will be agreed."

According to this wording in the above contract,
can the landlord demand that I vacate the apartment at the end of the first year,
or does the "option" allow me to continue living in it for another year?


3. Does the "option" mean that I can make the choice “to stay or to leave” only regarding the entire period together,
that is — either I stay for a full year or I leave now,
or perhaps — I can stay for part of the year, for example half a year, and then leave.

4. If we say that one may stay even for part of the period, and not necessarily the entire period,
must the notice regarding the length of time for which the tenant wants to exercise the option
be given specifically at the time of transition from the period before the option to the option period,
or is it possible to give notice that one is exercising the option without committing in advance to the length of the period?
And a month or two before leaving, the tenant will notify that he is ending his possession of the apartment.


5. If the tenant informs the landlord that he does want to exercise the option,
can the landlord demand that a new contract be drawn up with new conditions,
or does the contract + option allow the tenant to continue living there under the existing contract and terms

Answer

Greetings and blessings 

1–2. An “option” means that if the tenant wishes to continue, he may do so, and this is not dependent on the landlord. 

3–4. If the rental is on a yearly basis, the option is also to extend for a year, and not for part of it. 

5. According to what is written in the contract, without changes. 


Comments

Have an additional question on this topic or need clarification? Leave your comment below. (Please note that the comment will not be published but will be sent directly to the answering Rabbi for review and a private response)

Please sign up or log in to submit your comment