The Lease Termination Agreement is a crucial document used in Canadian property law when both parties agree to end a lease before its natural expiration. It's essential for both residential and commercial properties across all Canadian provinces and territories, with specific provisions varying by jurisdiction. This agreement protects both landlords and tenants by clearly documenting the terms of early lease termination, including the termination date, financial settlements, property condition requirements, and mutual releases. It's particularly important in situations involving early lease termination by mutual consent, tenant relocation, property sale, or significant changes in circumstances for either party. The document must comply with provincial/territorial tenancy laws and should be customized based on whether it's for residential or commercial property.
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1. Parties: Identification of the landlord and tenant(s), including full legal names and addresses
2. Background: Reference to the original lease agreement, its date, and property address
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Security Deposit', 'Property', etc.
4. Termination Agreement: Mutual agreement to terminate the lease and specification of the termination date
5. Security Deposit: Terms for the return of the security deposit, including timeline and any deductions
6. Final Payments: Details of any final rent payments, utilities, or other financial settlements
7. Property Inspection: Requirements for final inspection and property condition assessment
8. Vacant Possession: Tenant's obligation to remove all belongings and return keys
9. Release of Obligations: Mutual release from future lease obligations, subject to terms of the termination agreement
10. Governing Law: Specification that the agreement is governed by relevant provincial/territorial law
11. Execution: Signature blocks and date of agreement
1. Outstanding Repairs: Details of any repairs required before termination, used when property damage exists
2. Forwarding Address: Tenant's new address for future correspondence, used when ongoing communication may be needed
3. Holdover Provisions: Penalties for failing to vacate by the termination date, used in high-risk situations
4. Personal Property: Handling of any abandoned property, used when risk of abandonment exists
5. Confidentiality: Terms keeping the agreement details private, used in sensitive situations
6. Utilities Transfer: Process for transferring or terminating utility accounts, used when utilities are in tenant's name
1. Schedule A - Property Condition Report: Detailed documentation of property condition at termination
2. Schedule B - Financial Settlement Statement: Breakdown of all financial settlements including rent, utilities, and security deposit
3. Schedule C - Inspection Checklist: Checklist for final property inspection
4. Schedule D - Original Lease Agreement: Copy of the original lease being terminated
5. Schedule E - Photos: Photographic evidence of property condition at termination
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