The Rental Contract Cancellation document serves as a crucial legal instrument in Malaysian property law, designed to formally terminate existing rental agreements while protecting the interests of both landlords and tenants. It becomes necessary when parties mutually agree to end a tenancy before its natural conclusion or when terminating at the end of the agreed term. The document must comply with Malaysian legislation, including the Contracts Act 1950, National Land Code 1965, and relevant state-specific regulations. It typically includes provisions for the termination date, settlement of outstanding amounts, security deposit returns, and property handover requirements. This document is essential for maintaining clear records and preventing future disputes by ensuring all parties understand and agree to the termination terms.
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1. Parties: Identification of the landlord and tenant with full legal names and addresses
2. Background: Reference to the original tenancy agreement including its date and essential terms
3. Definitions: Definitions of key terms used in the cancellation agreement
4. Termination Date: Clear statement of when the tenancy will be terminated
5. Mutual Agreement to Terminate: Express statement that both parties agree to terminate the tenancy
6. Settlement of Outstanding Amounts: Details of any rent, utilities, or other payments due up to termination date
7. Return of Security Deposit: Terms for the return of the security deposit, including any deductions
8. Handover of Premises: Requirements for vacating and returning the property
9. Release and Discharge: Mutual release from future obligations under the original tenancy
10. Governing Law: Confirmation that Malaysian law governs the agreement
11. Execution: Signature blocks for all parties
1. Early Termination Fee: Include when the cancellation occurs before the original end date and penalties apply
2. Property Damage Settlement: Include when there are specific agreements about repair or compensation for damage
3. Utilities Transfer: Include when there are specific arrangements for transferring or terminating utility accounts
4. Keys and Access Devices: Include when there are multiple keys or access devices to be returned
5. Outstanding Repairs: Include when there are pending maintenance or repair issues to be resolved
6. Third Party Rights: Include when there are relevant third parties (e.g., guarantors) affected by the termination
7. Surviving Obligations: Include when certain obligations are intended to survive the termination
1. Schedule 1 - Property Inventory: List of property contents and their condition at termination
2. Schedule 2 - Outstanding Payments: Detailed breakdown of any outstanding amounts to be settled
3. Schedule 3 - Security Deposit Calculation: Breakdown of security deposit deductions and final return amount
4. Schedule 4 - Handover Checklist: Checklist of items to be completed before property handover
5. Appendix A - Original Tenancy Agreement: Copy of the original tenancy agreement being terminated
6. Appendix B - Property Inspection Report: Final inspection report documenting property condition at termination
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