Free Residential Lease Termination Agreement
An agreement to cancel an existing residential lease before the scheduled date of termination contained in the lease.
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Suppose a tenant wants to get out of a lease before its set to expire: under the conditions of the lease, they have already agreed to make rent payments up until the term ends, so they can’t just move out and expect to be off the hook for future payments. However, if the landlord is willing, a Residential Lease Termination Agreement may be executed to handle this situation. By signing a Residential Lease Termination Agreement, both parties release each other’s obligations under the lease.
Although the tenant may be required to pay a lease termination fee, the creation of a Residential Lease Termination Agreement may end up being more economically beneficial to both the landlord and tenant. It allows the tenant to pay a lesser amount than the total amount owed for rent for the remainder of the lease, and it gives the landlord compensation and the opportunity to release the premises.
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