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Cancellation Of Lease Agreement for Malaysia

Cancellation Of Lease Agreement Template for Malaysia

A formal legal document governed by Malaysian law that facilitates the mutual termination of an existing lease agreement between a landlord and tenant before its natural expiration date. The document establishes the terms and conditions for early termination, including the effective date, settlement of outstanding obligations, return of security deposits, and property handover requirements. It ensures compliance with Malaysian contract law, particularly the Contracts Act 1950 and National Land Code 1965, while providing legal protection for all parties involved through clear documentation of their agreement to end the lease relationship.

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What is a Cancellation Of Lease Agreement?

The Cancellation of Lease Agreement is essential in the Malaysian property market when parties mutually agree to terminate their lease arrangement before the original end date. This document becomes necessary in various situations, such as when a tenant needs to relocate unexpectedly, when a landlord requires the property for different purposes, or when both parties agree to end their contractual relationship amicably. Governed by Malaysian law, particularly the Contracts Act 1950 and National Land Code 1965, this agreement ensures proper documentation of the termination terms, protecting both parties' interests while addressing crucial aspects such as security deposit refunds, outstanding payments, and property handover procedures. It serves as a crucial risk management tool by clearly defining the rights, obligations, and responsibilities of all parties during the termination process.

What sections should be included in a Cancellation Of Lease Agreement?

1. Parties: Identification of the Landlord and Tenant with their full legal names, identification numbers, and addresses

2. Background: Reference to the original lease agreement, including its date, property details, and current status

3. Definitions: Definitions of key terms used in the agreement, including 'Termination Date', 'Property', 'Original Lease', etc.

4. Mutual Agreement to Terminate: Clear statement of both parties' agreement to terminate the lease and the effective termination date

5. Release and Discharge: Mutual release from future obligations under the original lease, subject to any preserved obligations

6. Outstanding Obligations: Statement regarding any remaining rent, utilities, or other payments due up to the termination date

7. Security Deposit: Arrangements for the return of the security deposit, including any deductions for damages or outstanding payments

8. Property Handover: Requirements for the condition of the property upon return and the handover process

9. Governing Law: Specification that the agreement is governed by Malaysian law

10. Execution: Signature blocks for all parties and witnesses

What sections are optional to include in a Cancellation Of Lease Agreement?

1. Condition Precedent: Used when the cancellation is subject to certain conditions being met first, such as finding a replacement tenant

2. Renovation Restoration: Include when there are specific requirements about restoring any alterations made to the property

3. Outstanding Repairs: Used when there are specific repair obligations that need to be addressed before termination

4. Surviving Obligations: Include when certain obligations need to survive the termination, such as confidentiality or indemnification

5. Keys and Access Devices: Include when there are multiple sets of keys or access cards that need to be returned

6. Third Party Notifications: Used when there are requirements to notify utility companies, insurance providers, or other third parties

What schedules should be included in a Cancellation Of Lease Agreement?

1. Schedule 1 - Original Lease Agreement: Copy or key details of the original lease agreement being terminated

2. Schedule 2 - Property Inventory: List of fixtures, fittings, and their condition at the time of termination

3. Schedule 3 - Outstanding Payments Schedule: Detailed breakdown of any outstanding payments or adjustments

4. Schedule 4 - Handover Checklist: Checklist of items to be verified during the property handover

5. Schedule 5 - Photographic Evidence: Photos documenting the property's condition at termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Termination Letter

Cost

Free to use
Relevant legal definitions




















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Relevant Industries

Real Estate

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Relevant Roles

Property Manager

Real Estate Manager

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Contract Administrator

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