Real Estate Lease Termination Agreement
Real Estate Lease
Termination Agreement
This Real Estate Lease Termination Agreement ("Agreement") is made and entered into on [Date], by and between [Your Company Name], hereinafter referred to as "Landlord," and [Tenant Name], hereinafter referred to as "Tenant." The Landlord and Tenant may be collectively referred to as the "Parties" or individually as a "Party."
WHEREAS, the Parties entered into a Lease Agreement dated [Original Lease Start Date], for the property located at [Property Address] ("Property"); and
WHEREAS, the Parties wish to terminate the said Lease Agreement prior to its original expiration date of [Original Lease End Date], under the terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree to terminate the Lease Agreement on the terms and conditions as outlined in this Agreement.
I. Termination Details
The Parties agree that the Lease Agreement for the Property located at [Property Address], dated [Original Lease Start Date], shall be terminated effectively on [New Lease End Date]. Both Parties mutually consent to this early termination and acknowledge that the termination is done in good faith, without any duress or undue influence from either Party.
II. Notice Period
The Tenant provided the Landlord with a 60-day notice of intent to terminate the Lease Agreement, in writing, on [Notice Date], which is in compliance with the terms specified in the original Lease Agreement. The Landlord acknowledges receipt of such notice on [Receipt of Notice Date], and agrees that the notice period has been duly served.
III. Financial Obligations
A. Final Rent Payment: The Tenant agrees to pay a final rent amount of $2,000, covering the period up to and including the effective termination date of [New Lease End Date]. This payment shall be made no later than [Payment Deadline Date], to ensure all financial obligations are settled before vacating the Property.
B. Security Deposit: The Landlord agrees to return the Tenant's security deposit of $3,000 within 30 days after the Tenant has vacated the Property, subject to deductions for any damages beyond normal wear and tear as specified in the original Lease Agreement. The Landlord will provide an itemized statement of any such deductions, if applicable.
C. Utilities: The Tenant is responsible for all utility payments up until the effective termination date. Final utility bills should be settled directly with the respective service providers by the Tenant before [New Lease End Date]. The Tenant agrees to provide the Landlord with proof of final utility payments or clearance from the utility companies within 15 days post the termination date.
D. Additional Fees: There are no additional fees or penalties for the early termination of the Lease Agreement beyond the obligations specified herein.
IV. Property Condition and Vacating Procedures
The Tenant agrees to vacate the Property no later than 5:00 PM on [New Lease End Date]. Upon vacating, the Property must be left in a clean condition, free of all personal belongings and trash, and in the same condition as at the beginning of the lease term, reasonable wear and tear excepted. The Landlord and Tenant shall conduct a final walk-through inspection of the Property on [Inspection Date], to assess its condition. The Tenant shall return all keys, access cards, and any other property access devices to the Landlord immediately following the inspection.
V. Mutual Release of Liability
Upon the effective date of this Agreement and the Tenant’s fulfillment of all terms herein, including the vacating of the Property and payment of all owed sums, both the Landlord and Tenant shall release each other from all obligations, liabilities, claims, and demands whatsoever in relation to the Lease Agreement. This release does not cover any obligations or liabilities arising after the effective date of this Agreement.
VI. Dispute Resolution
Should any disputes arise from the termination of the Lease Agreement or the interpretation of this Termination Agreement, both Parties agree first to seek resolution through direct negotiation. If unresolved, the dispute shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association. The costs of arbitration shall be shared equally by both Parties.
VII. Additional Terms and Conditions
A. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the state where the Property is located.
B. Entire Agreement: This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written.
C. Amendment: No amendment, modification, or supplement of any provisions of this Agreement shall be valid or effective unless made in writing and signed by both Parties.
D. Notices: Any notice required to be given under this Agreement shall be in writing and delivered personally or sent by certified mail, return receipt requested, or by email with confirmation of receipt.
Signatures
In witness whereof, the Parties have executed this Lease Termination Agreement as of the date first above written.
Landlord
[Name]
[Date]
Tenant
[Name]
[Date]
