Terminating the Lease Agreement

An agreement lease termination is a contract between the tenant and landlord stipulating that both have mutually agreed to no longer be bound by the lease agreement. It can also mean an agreement containing the grounds that can lead to the termination of the lease contract. Either way, it tells how and why the lease contract is no longer in force or why it has ended.

Sometimes, the lease termination agreement is included in the contract of lease itself. There are several ways to terminate a lease contract though basically there are only three. First is when both the landlord and tenant mutually agree to end the lease contract. In this type of termination agreement, a date is set as to when the tenant should move out and when the tenant should pay for the last month of the lease.

Sometimes, depending on the circumstances, the landlord will have to pay or return to the tenant a considerable amount of money, which the tenant may have paid as a down payment beforehand. This usually happens if the contract of lease was prematurely terminated by either tenant of landlord for any reason that would cause the cancellation of the contract of lease.

Second, the lease agreement may have been terminated because of a breach of contract. A breach can be caused by either party to the contract. It happens when one of them does not follow or fails to perform his or her obligation with respect to the lease agreement. For example, failure to pay rent by the tenant or failure of the landlord to provide for amenities that have been previously agreed upon is considered a breach. Another sample of breach is when you violate any of the rules and regulations stipulated in the contract.

Thirdly, a contract of lease may be terminated when the property of the landlord has been foreclosed, auctioned or sold by court in accordance to a final judgment. In this case, the landlord should indemnify the tenant for damages or the trouble he or she has caused the tenant. This type of termination happens only when the landlord has lost in a law suit and the land is confiscated from him by the State.

In general, the termination of the lease contract means that the landlord and tenant are no longer bound to each other as such. The tenant does not have to pay rent anymore and as an effect, cannot also use the property of the landlord for his or her own gain. The termination of the lease agreement also means that the contract is not renewed by either party.