Lease Terminations

By | March 10, 2013

Lease terminations are indicators of the client’s unwillingness to continue with a particular deal. It may involve the termination of a rent agreement at or before the time of the specified date in the lease contract. Lease terminations must clearly specify the reason for the termination of a contract and must be written clearly and lucidly in order to avoid last minute confusion.

  • A lease termination must clearly indicate all the primary condition and agreements the initial deal had been finalized on, including the date of activation, the date of termination and the duration of the lease.
  • If the deal is being terminated prior to the due date, the lessee may be subject to termination penalties as per the lessor’s discretion.
  • If necessary, the landlord or a lessor in general may seek an inspection of the goods to check for damage. This must be clearly agreed on by both parties and convenient dates can be mentioned in the lease termination document.
  • A lease termination must also include the reasons for terminating the contract especially if it is being terminated before the specified time. A note of courtesy and professionalism must always be maintained. The return of utilities granted by a lessor must also be specified.

The advantages of lease terminations are the transparency it ensures, giving both the lessee and the lessor to move out of the contract with all doubts cleared. It must be framed courteously and civilly. It is legally binding too as a breach of contract is punishable by the law.

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