Lease Termination Agreement
This Lease Termination Agreement (the "Agreement") is made between [Landlord name (as on the lease)] ("Landlord") and [Tenant name(s) (as on the lease)] ("Tenant"). Landlord and Tenant are parties to a lease dated [Date of the lease] for the premises at [Premises address] (the "Premises"), which would otherwise end on [Original lease end date] (the "Lease"). The parties wish to end the Lease early on the terms below. Landlord and Tenant are each a "Party" and together the "Parties".
1. Termination
The Lease, and Tenant’s right to occupy the Premises, terminate at 11:59 p.m. on [Termination and move-out date] (the "Termination Date"), instead of on the original end date. Until the Termination Date the Lease remains in full force and both Parties shall continue to perform it. This Agreement is not a notice to quit under any statute and is not a waiver of any breach that occurred before the Parties signed it, except as Section 6 provides.
2. Move-Out
On or before the Termination Date Tenant shall vacate the Premises with all occupants, remove all belongings and trash, leave the Premises clean and in the condition required by the Lease except for ordinary wear and tear, and return all keys, remotes, garage openers and access devices to: [Keys returned to]. Tenant’s forwarding address for the deposit statement and any other notice is: [Tenant forwarding address]. Property left in the Premises after the Termination Date is deemed abandoned and Landlord may dispose of it as the law of the State of [Governing law (state)] allows, after any notice that law requires.
3. Rent and Termination Fee
Rent under the Lease has been paid through [Rent has been paid through]. Tenant shall pay Landlord the remaining rent through the Termination Date, being [Rent still owed through the termination date (or $0)], and an early termination fee of [Early termination fee (or $0)] (the "Termination Fee"), both on or before [Fee and final rent due by]. The Termination Fee is agreed consideration for Landlord’s release of Tenant from rent for the balance of the original term and for Landlord’s re-renting costs, and is not a penalty. Tenant shall also pay any utility or other charge under the Lease accrued through the Termination Date. Once these amounts are paid and Tenant has vacated as Section 2 requires, Tenant owes no further rent, and Landlord’s re-renting of the Premises at any rent does not create any claim by either Party against the other.
4. Security Deposit
Landlord holds a security deposit of [Security deposit held] (the "Deposit"). The Deposit will be: [Security deposit will be]. Within [Deposit statement and balance sent within (days)] days after the Termination Date, or such shorter period as the law of the State of [Governing law (state)] requires, Landlord shall send to Tenant’s forwarding address a written itemized statement of any amounts applied or deducted from the Deposit together with any balance owed to Tenant. Lawful deductions are limited to unpaid rent and charges, the cost of repairing damage beyond ordinary wear and tear, cleaning needed to restore the Premises to their condition at move-in, and any amount this Agreement expressly allows. If the Deposit is forfeited under this Section, it is treated as applied to the Termination Fee first, and Landlord shall still account for it in writing to the extent the law requires.
5. Condition; Inspection
Landlord may inspect the Premises on the Termination Date, or within three (3) days after Tenant vacates, and Tenant may attend. Where the law of the State of [Governing law (state)] gives Tenant a right to a pre-move-out inspection, Landlord shall offer one on request. The Parties shall compare the Premises to any move-in inspection record and note any damage in writing. Tenant remains liable for damage beyond ordinary wear and tear discovered within the deposit accounting period, whether or not noted at the inspection, to the extent the Lease and the law allow.
6. Mutual Release
Effective when Tenant has vacated as Section 2 requires and paid every amount due under Section 3, Landlord releases Tenant, and Tenant releases Landlord, and each releases the other’s agents, employees, successors and assigns, from every claim, demand, obligation and liability arising out of the Lease or Tenant’s occupancy of the Premises, whether known or unknown, that arose on or before the Termination Date. If the law of the State of [Governing law (state)] restricts the release of unknown claims, each Party waives the benefit of that restriction to the extent it lawfully can.
The following survive this release: Landlord’s obligation to account for and return the Deposit under Section 4; Tenant’s liability for damage under Section 5 and for any amount under Section 3 not yet paid; either Party’s liability for personal injury or property damage caused by its negligence or willful act before the Termination Date; and any obligation of indemnity under the Lease for claims by third parties arising from events before the Termination Date. If any guarantor guaranteed the Lease, the guaranty continues until every amount due under this Agreement is paid.
7. Failure to Vacate
If Tenant does not vacate and return keys by the Termination Date, the release in Section 6 does not take effect, Tenant owes rent for each day of holdover at one hundred fifty percent (150%) of the daily rent under the Lease to the extent the law permits, together with any loss Landlord suffers, including claims by an incoming tenant, and Landlord may recover possession under the Lease and the law of the State of [Governing law (state)]. Landlord’s acceptance of any payment after the Termination Date does not revive the Lease or create a new tenancy, and the Termination Date is not extended except in a writing signed by Landlord.
8. Representations
Each Party represents that it has the authority to sign this Agreement, has not assigned any claim it releases, and has read and understood this Agreement or had the opportunity to consult an attorney. Tenant represents that no one other than Tenant and the occupants named in the Lease claims a right to occupy the Premises, and that Tenant has not sublet them. Landlord represents that Landlord is the landlord under the Lease or is authorized to sign for the landlord.
9. General
This Agreement is governed by the laws of the State of [Governing law (state)] and by any local ordinance governing tenant buyouts or voluntary vacancies that applies to the Premises, which the Parties shall comply with. It is the entire agreement between the Parties about ending the Lease, supersedes all prior discussions, and may be amended only in a writing signed by both Parties. If any provision is unenforceable, the remainder stays in effect. Notices may be delivered by hand, by mail to the addresses above or to the Premises until the Termination Date, or by email to the addresses in the execution record. Time is of the essence. This Agreement may be signed electronically and in counterparts, each an original and together one instrument, and the electronic execution record kept by the signing platform is conclusive evidence of execution.
Signatures
Landlord · Tenant