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Commercial Lease Termination Agreement Template for New Zealand

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Key Requirements PROMPT example:

Commercial Lease Termination Agreement

"Need a Commercial Lease Termination Agreement for my retail store in Auckland CBD, with a mutually agreed early termination date of March 15, 2025, including terms for a $50,000 early termination fee and the return of a $25,000 security deposit."

Document background
The Commercial Lease Termination Agreement is a crucial document used when parties wish to formally end a commercial lease before its scheduled expiry date in New Zealand. This agreement is essential for protecting both landlord and tenant interests by clearly documenting the terms of the early termination, including specific dates, financial settlements, and property handover requirements. It becomes necessary in various situations such as business restructuring, relocation, or mutual agreement to end the lease early. The document must comply with New Zealand property law, particularly the Property Law Act 2007 and the Contract and Commercial Law Act 2017. It typically includes provisions for outstanding rent payments, maintenance obligations, security deposit returns, and mutual releases from future obligations. The agreement helps prevent future disputes by providing clear documentation of the termination terms and ensures all parties understand their rights and obligations during the termination process.
Suggested Sections

1. Parties: Identification of the landlord and tenant, including their full legal names, addresses, and company details if applicable

2. Background: Brief overview of the existing lease arrangement, including original lease date, premises details, and reason for termination

3. Definitions: Definitions of key terms used throughout the agreement, including 'Premises', 'Lease', 'Termination Date', and other relevant terms

4. Termination Date: Specific date when the lease will terminate and the tenant's occupation rights will cease

5. Outstanding Obligations: Details of any rent, operating expenses, or other amounts owing up to the termination date

6. Return of Premises: Requirements for returning the premises, including condition requirements and inspection procedures

7. Security Deposit: Arrangements for the return or application of any security deposit or bank guarantee

8. Release and Discharge: Mutual release of parties from future obligations under the lease, subject to any surviving obligations

9. Confidentiality: Obligations regarding confidentiality of the termination agreement and its terms

10. Execution: Formal execution clauses and signing requirements

Optional Sections

1. Make-Good Obligations: Specific requirements for premises restoration, used when the tenant needs to return the premises to original condition

2. Dispute Resolution: Specific dispute resolution procedures, included when parties want to specify a particular process for resolving disputes

3. Surviving Obligations: List of obligations that continue after termination, included when specific obligations need to survive

4. Assignment of Rights: Provisions dealing with assignment of lease rights, included when there's a third party involved

5. Insurance: Specific insurance requirements during the termination period, included when there are ongoing insurance obligations

6. Holdover Provisions: Terms governing any period of occupation after the termination date, included when there might be a delay in vacancy

7. Third Party Consents: Requirements for obtaining consents from third parties, included when mortgagee or other consents are needed

Suggested Schedules

1. Schedule 1 - Premises Details: Detailed description of the premises including address, floor area, and any included fixtures

2. Schedule 2 - Outstanding Amounts: Itemized list of all outstanding amounts including rent, operating expenses, and other charges

3. Schedule 3 - Condition Report: Current condition report of the premises, including photographs if applicable

4. Schedule 4 - Make-Good Requirements: Detailed list of make-good works required (if applicable)

5. Schedule 5 - Settlement Payments: Details of any termination or settlement payments agreed between the parties

6. Appendix A - Original Lease: Copy of the original lease agreement and any variations

7. Appendix B - Keys and Access Devices: Inventory of all keys, access cards, and security devices to be returned

Authors

Alex Denne

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

Relevant legal definitions



































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Relevant Industries

Real Estate

Retail

Office Commercial

Industrial

Hospitality

Healthcare

Education

Professional Services

Manufacturing

Logistics

Banking and Finance

Technology

Relevant Teams

Legal

Finance

Operations

Facilities Management

Real Estate

Risk and Compliance

Administrative Services

Property Management

Asset Management

Corporate Services

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Property Manager

Facilities Manager

Real Estate Manager

Legal Counsel

Commercial Lawyer

Operations Manager

Finance Manager

Business Development Manager

Asset Manager

Lease Administrator

Property Administrator

Company Secretary

Risk Manager

Compliance Officer

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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