A lease termination is the legal process by which a lease created between the lessor and the lessee is cancelled either solely by the former or solely by the latter or by both on mutual consideration. It is a crucial part of any lease deal that has to be finished by notifying the associated parties and the concerned court of jurisdiction. Thus, it is a measure espoused when the need for the lease is over and the lessee acquires a new house or purchases property for himself.
Termination letters are used as a means of conveying request for lease cancellation and are applicable only for lease documents that are open to termination and carry the rules and indications of termination in clear terms. Following the specific rules and dictum of the concerned lease, the termination is executed. Thus the whole process stands on legitimization and approval from court.
The following features form a decisive part of lease termination and must be included in document:
- The official address of the lessor and the lessee has to be given in full so that the parties can address their letters of termination correctly.
- The dates of commencement and termination of lease must be outlined in date/month/year format for validating a period of lease term depending on the requirements of the parties.
- The statute regarding the lease termination has to be clearly indicated stating if it is the lessor’s will dictating the termination or otherwise.
- A note pertaining to the written notice has to be mentioned for the lessee to inform the lessor in advance about his decision to terminate the lease before expiry.
- It is very important to get the signatures of the parties in the closing deal to legally confirm their mutual consent in carrying out the agreement in terms of lease termination.