Legal Article | What Is A Lease Termination AgreementMore Than Articles

What Is A Lease Termination Agreement

If you’ve ever found yourself in a situation where you needed to get out of a binding lease, you have probably discovered the murky and often confusing legal waters that come with this area of law. Not only do you need to have a lease termination agreement that satisfies both renter and rentee, but you also need to have an intimate knowledge of the original lease to be able to work from. Let’s take a look at some of the finer points of a lease termination agreement.

In short, a lease termination agreement is a legal agreement that is entered into by both the renter and the landlord that outlines the fact that the original lease is being terminated early and lays out the terms of that decision. Often times there are lease termination fees that must be included in the final agreement as well as any other mutually agreed upon terms or conditions.

It is extremely important to note that the laws governing lease termination agreements differ from state to state. We’ll take a look at some general tips for creating a lease termination agreement in the state of California, but it is absolutely vital that you read and understand the laws in your own state of vicinity before you draw up a legally binding agreement such as this. Being aware of the laws in your particular state in will help you streamline this process significantly.

Customarily, at the start of any lease termination agreement, the general legal and financial terms of the original lease will need to be outlined. In this section, you must make sure that you have the legal names of both the landlord and the renter included in the lease and give a general outline of how long the original lease was signed for, how long into the lease both parties got before they decided to terminate the agreement and any other pertinent information that is present on the original lease.

The next section of the lease will declare that the original lease has been terminated and the reasons for which the original terms have been terminated. This is often the most complicated and difficult part of the agreement to write since the story of why the lease needs to be terminated is often different depending on whose story you listen to. In most cases, both the landlord and the renter will have a somewhat positive relationship for the agreement to even be drawn up in the first place. A truly contentious landlord-renter relationship will usually end up in court, not with a lease termination agreement.

The next part of the agreement is an outline that will cover any and all fees that need to be paid in order for the termination of the lease to be approved. You must be very careful with your language here, as this is the part of the agreement that pertains directly to financial matters and can be disputed if it is not written in an iron clad way.

About the Author

Mark Warner is a Legal Research Analyst for RealDealDocs.com. RealDealDocs gives you insider access to millions of legal documents drafted by the top law firms in the US. Search over 10 million Documents, Clauses, and Legal Agreements for Free at http://www.RealDealDocs.com

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