What is Lease Termination Agreement Drafting?
A lease termination agreement is a legal contract that cancels a rental lease prior to its end date and releases both parties (the landlord and tenant) from any future responsibilities or obligations.
If you need to draft a lease termination agreement, you should read the rest of this article for clarity about what to include in it and how a qualified lawyer can help you with the drafting process.
What are Key Terms in a Lease Termination Agreement?
A lease termination agreement should contain the following information:
- Parties. Include the involved parties’ full legal names and contact details.
- Property details. Make it clear what property is covered by the agreement, such as by including its physical address.
- Original lease dates. Mention the start and end dates of the original lease agreement.
- New termination date. For clarity, you want to state the exact date on which the lease will end.
- Payment terms. Outline the parties’ financial obligations, such as unpaid rent and early termination fees.
- Mutual release. This section of the agreement states that both parties release each other from future claims or obligations.
How Do You Draft a Lease Termination Agreement?
When drafting a lease termination agreement, you should pay attention to specific details so that it’s clear and protects both parties against disputes.
Refer to the Original Lease Agreement
You must check all terms in the original lease so that you can identify important details with which the lease termination agreement must be aligned. This includes checking if there’s a month-to-month arrangement or early termination fees apply.
Explain the Termination Reason
You want to explain what has caused the early termination, such as why both parties wish to end their arrangement, so that it’s clear why the lease termination agreement is required. By confirming that parties agree on ending the lease, you can reduce your future dispute risk.
Include Handover Rules
For practicality, you should explain when and how items must be returned to the landlord, such as property keys, garage remote controls, and/or access cards. Explain when the handover will occur.
Negotiate with the Other Party
Make sure both parties agree on all agreement terms, such as regarding inspections and other expectations, before finalizing the lease termination agreement. This ensures that you prevent confusion or disagreements.
Specify the Termination Date
Avoid confusion between the termination date and the date on which the tenant is required to vacate the property if these vary in your specific arrangement. State the exact date and time when the agreement ends.
Address Outstanding Payments
Explain the final rent payment and how outstanding charges are handled. Include payment deadlines and how the security deposit will be navigated.
How Does a Lawyer Help You Draft a Lease Termination Agreement?
If you want to draft a lease termination agreement, it’s advisable to seek legal guidance from a lawyer. When drafting the contract, a lawyer will ensure legal compliance with all applicable state and local laws. They’ll also conduct the following activities during the agreement drafting process:
- Protecting your legal rights. A lawyer will review the original lease to identify both parties’ rights, obligations, and liabilities.
- Preventing future disputes. They’ll draft clear, specific terms in the lease termination agreement to prevent misunderstandings and disputes.
- Clarifying financial responsibilities. They’ll establish how payments are handled, including what early termination fees apply and how unpaid rent will be dealt with.
- Negotiating favorable agreement terms. A lawyer will negotiate with the other party on your behalf to reach balanced and fair agreement terms, should this be required.
- Addressing special circumstances. A lawyer will help you navigate complex situations, such as lease breaches, to protect you against financial losses.
- Providing you with peace of mind. They’ll ensure you enter the agreement with a clear understanding of your rights and obligations, while being aware of potential risks so the agreement can protect you.
- Reviewing your lease termination agreement. If you’ve already drafted your agreement, you should hire a lawyer to review it for you. During a thorough contract review, a lawyer will ensure that all terms are fair, detailed, and legally sound.
Where to Find and Hire a Lawyer for Lease Termination Agreement Drafting
If you’ve decided to hire a lawyer to draft your lease termination agreement, you might be uncertain of where to find one who meets your legal requirements.
By using an online legal platform such as ContractsCounsel, you can quickly connect with experienced and professional lawyers who will assist you with your contract drafting needs, without having to leave your home.
ContractsCounsel is one of the largest online legal marketplaces that gives you access to a curated network of lawyers who have been vetted on the platform.
If you need to ask a lawyer on the platform to draft your lease termination agreement, here are the easy steps to follow from your device:
- Go to the ContractsCounsel marketplace.
- Select ‘One-time project’ and ‘Create or update contract.’ Alternatively, select ‘Contract review.’
- Post your project or request, which is free to do. Include some information about your arrangement or lease to connect with suitable lawyers.
- Wait for bids. Lawyers directly on the platform will send you multiple bids to work on your project, instead of you having to search for lawyers.
- Review the platform’s lawyer information. This includes the lawyers’ location, expertise, credentials, years of experience, and client ratings for previously completed projects on the platform.
- Hire a lawyer to draft your lease termination agreement for a flat fee.