If you have decided to end your lease and part ways with your landlord sooner than your rental agreement noted, then you will likely require a Lease Surrender Agreement.
What Exactly Is It?
A Lease Surrender Agreement is needed when a tenant and landlord have decided to end the lease prior to its expiry date. The agreement will include clauses that will help their rental agreement, ensuring that everything is covered so there are minimal disputes later
A Lease Surrender Agreement includes:
- Early termination payments
- Payments of rent until the date of surrender
- Make good clauses
- Mutual release
Why Do I Need A Lease Surrender Agreement?
You may be wondering, “If we both agree to terminate the lease, then why do we need to bother with another agreement?” Well, contractual relationships can be tricky.
As you already have an agreement that details the lease ending on another date, it’s best to get the new information in writing. You want to treat it like a new, separate agreement since you’re changing a substantial piece of information regarding your arrangement.
A Lease Surrender Agreement Will cover any new information that was not mentioned in the original contract and tie the agreement up to make sure both parties are happy with the arrangement.
Chris has been renting a fifth floor office space for his firm for 3 years now. There are two more years to go according to his contract. However, he has been offered a much better location in the CBD that will be easier for his clients to access.
Chris decides to talk to his landlord, Jennifer, about potentially ending their agreement early. It turns out that Jennifer has been offered a good price for space, however she was hesitant to accept it as she didn’t want to break her contract with Chris. The two agree to end their lease agreement early.
Jennifer tells Chris that even though they both agree with no issues, it’s still a good idea to put it in writing. She has her lawyer draft a Lease Surrender Agreement for the two of them to sign. The two negotiate final payments, bond payments and the actual date the lease was to end.
When they finally reach a solution that suits them both, they sign the agreement.
At Sprintlaw, we can draft a Lease Surrender Agreement for your business.
Our Lease Agreement package includes:
- Drafting a Lease Surrender Agreement in accordance with the requirements of your business
- Phone consultations (up to 60 minutes) with a Sprintlaw lawyer who will take your instructions, advise you on the legal issues you need to know and answer your questions about the document
- 1 x complimentary amendment to the final draft we provide you, as long as you request the amendment within 10 business days of us delivering the final draft
Please note that this package does not include:
- Any direct negotiations or correspondence with the counterparty or their lawyers or reviewing any responses from the counterparty or their lawyers to the list of requested changes. If you need further negotiation support or additional rounds of review, we will provide a new quote
- Any employment, tax, accounting or other compliance issues
Need Help With Your Lease?
Thinking of ending a lease early? We can help make that transition a little easier!
If you would like a consultation on your options going forward, you can reach us at 1800 730 617 or firstname.lastname@example.org for a free, no-obligations chat.
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