An open-ended lease is not a separate kind of contract — it is an ordinary lease with no term stated. The arrangement has clear advantages and one feature both parties need to keep in mind: either of them can leave it unilaterally.
What the law says
The rule is set out in Article 610 of the Russian Civil Code: if the parties have not fixed the term of a lease, it is deemed concluded for an indefinite period.
If the term of the lease is not specified in the contract, the lease is deemed to have been concluded for an indefinite period.
How a lease becomes open-ended
There are two routes to an open-ended lease.
- The parties deliberately leave the term out when they sign.
- The term has expired, the tenant keeps using the premises and the landlord does not object. The lease is then deemed renewed on the same terms for an indefinite period (Article 621 of the Civil Code).
The second scenario is more common than it seems: an 11-month lease runs out, no new one is signed, and the tenancy simply continues. Legally, the parties are already living under an open-ended lease — with its termination rules.
Does it need state registration?
Leases of buildings and premises concluded for a year or longer are subject to state registration. A lease for an indefinite term does not fall under this rule: court practice has settled on the view that it does not need to be registered.
Skipping registration saves time at the start. But such a lease is not reflected in the state property register (EGRN), so it has to be evidenced by the parties' own documents.
| Type of lease | Registration | How to exit |
|---|---|---|
| A year or longer | Required for buildings and premises | By mutual agreement, on grounds set in the lease, or through the courts |
| Less than a year | Not required | The same; the lease ends with its term unless extended |
| Indefinite term | Not required | Either party may withdraw with three months' notice, unless the lease sets a different period |
A year or longer
- Registration
- Required for buildings and premises
- How to exit
- By mutual agreement, on grounds set in the lease, or through the courts
Less than a year
- Registration
- Not required
- How to exit
- The same; the lease ends with its term unless extended
Indefinite term
- Registration
- Not required
- How to exit
- Either party may withdraw with three months' notice, unless the lease sets a different period
How to end an open-ended lease
The defining feature of an open-ended lease is that each party may withdraw at any time without giving reasons. For real estate, the law requires three months' notice to the other party; the lease itself can set a different period.
Notice is best sent in a way that proves when it was received — registered mail with an inventory of contents, or delivery against signature. The notice period runs from the moment the notice is received.
What to put in the contract
- The notice period for withdrawal — if three months is too short or too long for the parties.
- How the rent changes. As a general rule, rent is changed by agreement of the parties no more than once a year unless the lease says otherwise, so an indexation mechanism is worth writing down in advance.
- What happens to the security deposit on withdrawal.
- How the premises are handed back: the handover act, condition and vacating deadlines.
Who the open-ended format suits
For a tenant, an open-ended lease means flexibility: they can move out by giving notice, without negotiating early termination. For an owner, it means no registration and the option to revisit the arrangement if the property is needed for something else.
The flip side is the same flexibility: neither party is protected from the other walking away. Where a tenant invests in fit-out or equipment and the owner counts on steady income, a fixed-term lease with clear early-exit terms is the usual choice.