The Cancellation Of Rental Agreement is a crucial document used when both parties mutually agree to terminate an existing rental arrangement before or at its natural conclusion. This document is essential in the Nigerian real estate context, where it must comply with federal legislation such as the Recovery of Premises Act and state-specific tenancy laws. It serves to protect both landlord and tenant interests by clearly documenting the termination terms, final settlements, and release of future obligations. The agreement becomes particularly important in situations involving security deposit refunds, utility settlements, and property condition assessments. It helps prevent future disputes by providing a clear record of the termination terms and ensuring all parties understand their rights and obligations during the termination process.
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1. Parties: Identification of the Landlord and Tenant with their full legal names and addresses
2. Background: Reference to the original rental agreement including its date, property address, and term
3. Definitions: Key terms used in the cancellation agreement including 'Effective Date', 'Property', 'Original Agreement', etc.
4. Mutual Agreement to Terminate: Clear statement of both parties' agreement to terminate the rental agreement
5. Effective Date of Termination: Specific date when the rental agreement will be terminated and tenant will vacate
6. Final Settlement: Details of rent payments up to termination date and handling of security deposit
7. Property Inspection: Arrangements for final inspection and handover of the property
8. Release of Obligations: Mutual release of future obligations under the original agreement
9. Governing Law: Confirmation that the agreement is governed by Nigerian law
10. Signatures: Space for dated signatures of both parties and witnesses
1. Early Termination Fee: Include when the cancellation occurs before the end of the agreed term and fees apply
2. Outstanding Utilities: Include when there are utilities to be settled or transferred
3. Forwarding Address: Include when the tenant needs to provide a forwarding address for future correspondence or deposit return
4. Keys and Access Devices: Include when there are specific arrangements for returning keys, access cards, or remote controls
5. Maintenance Issues: Include when there are outstanding maintenance or repair issues to be addressed
6. Personal Property: Include when arrangements need to be made for removal of tenant's remaining belongings
1. Schedule 1: Property Condition Report: Detailed checklist of property condition at time of termination
2. Schedule 2: Settlement Statement: Breakdown of all financial settlements including rent, deposits, and any deductions
3. Schedule 3: Utility Readings: Final readings for electricity, water, gas and other relevant utilities
4. Appendix A: Photographic Evidence: Photos documenting the condition of the property at termination
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