FREE 10+ Termination of Lease Agreement Samples in MS Word | Google Docs | Apple Pages | PDF

The end of a lease is something important as the beginning. A change in business climate or any of the parties’ goals may signal that it’s time to terminate the lease and release the parties from their duties. Whatever the reason may be, to lease a property, machinery, equipment and etc. should have its procedures for terminating the contract between the lessor and lessee. Termination of lease agreement, if well-drafted can help prevent future misunderstandings and disputes. Although no document can insulate you from later lawsuits or claims, a clear termination and release can strengthen your defense if such claims arise. To learn more about this particular type of agreement, let us discuss this further below. And if you need any help preparing a termination of lease agreement, then check out our free termination of lease agreement samples that are downloadable on this page.

10+ Termination of Lease Agreement Samples

1. Termination of Lease Agreement by Landlord

2. Termination of Lease Agreement Template

3. Sample Termination of Lease Agreement

4. Termination of Lease and Surrender Agreement

5. Basic Termination of Lease Agreement

6. Early Termination of Residential Lease Agreement

7. Mutual Agreement to Terminate Lease

8. Lease Termination and Release Agreement

9. Printable Termination of Lease Agreement

10. Lease Cancellation and Termination Agreement

11. Editable Termination of Lease Agreement

What Is a Termination of Lease Agreement?

To end a lease agreement between a lessor and lessee isn’t quite simple, some businesses may require termination of lease agreement aside from the lease agreement that was initially executed beforehand. The reasons for such may be loss of sales, deteriorating property, or changes in the business structure. This agreement may be prepared right after the lease agreement has been created, and would indicate that both parties have mutually agreed to terminate the contract amongst other things. For others, it is important to create such a document in writing to be able to set the terms rights and this may serve as a reference in case of any disputes.

How To Create a Termination of Lease Agreement?

With a termination of lease agreement on hand, the tenant relinquishes any hold on the property and the landlord on the other hand would agree to release the tenant from further obligations written in the agreement. However, there may be some provisions where the landlord may sue or charge the tenant for early termination in reference to the lease agreement. The amount can’t be more than the landlord’s actual and reasonable loss that occurred as a result of the termination (e.g., lost rent, advertising costs, etc.). So to start creating a termination of lease agreement, you must be more or less able to include the following provisions below:

I.Introduction

Identifies the document as the termination of an existing lease. And the names of the parties involved should be written in the document and the date on which you want the termination to be effective. The parties must be the same as those who signed the original agreement unless these were representatives of a company.

II. Reason(s) for the Termination

Write down an overview of the reasons why the lease should be terminated. Is it because it has reached its deadline, or perhaps due to unforeseen events or emergencies? It is advisable to include this in this document because if any disputes or misunderstandings should happen in the future both parties have a reference to look into.

III. Compliance with Obligations or Termination Fee

Now whichever is applicable to the tenant, you could opt to include obligations that indicate that even after the termination is signed, the tenant remains responsible for any rent payments or other obligations that arose before the termination date. Or in case of a termination fee, this provides for a one-time payment of a specified amount to satisfy all of the tenant’s remaining and future obligations relating to the lease. Include the amount of payment in this section of the agreement.

IV. Security Deposit

Explain how the security deposit will be returned to the tenant. Make sure to review the terms of your lease contract for additional information about these procedures.

V. Mutual Release of Liabilities

When there is a need to terminate a lease agreement it is important to include a clause that discharges all liabilities that could arise from the original agreement. In other words, both parties agree not to sue each other for any unfinished obligations or fees.

VI. Other Important Details

You may want to add other provisions that allow the lessor and the other party to place conditions on the lease termination. In other words, either of you can require the other to complete certain tasks or reach certain goals before the termination will become effective. Aside from that, you may also need to provide or this may be optional in some cases such as a confidentiality agreement, governing laws, tenant’s warranties, and representation and severability.

FAQs

To make sure you are undergoing the right termination process, then start working on the termination of lease agreement now. Don’t forget to download our free templates to make it easier for you to prepare.