Early Termination of Tenancy Agreement Contract: What You Need to Know

When entering into a tenancy agreement contract, both the landlord and tenant expect the lease term to be fulfilled. However, unforeseen circumstances can arise that may require either party to terminate the agreement early.

Early termination of a tenancy agreement contract can be beneficial for both parties, but it can also result in disputes. Therefore, it is essential to understand what early termination entails and how it can be done amicably.

What is Early Termination of a Tenancy Agreement Contract?

Early termination of a tenancy agreement contract is when either the landlord or the tenant ends the lease term before its expiration date. This can happen for various reasons, such as job relocation, financial hardship, purchasing a home, family emergencies, among others.

However, ending the lease term early can result in financial losses for the landlord and inconvenience for the tenant. Therefore, it is essential to have a clear understanding of what the agreement stipulates in case of early termination.

How to Terminate a Tenancy Agreement Contract Early

Both the landlord and the tenant can terminate a tenancy agreement contract early. However, it is essential to do so in a way that will not result in disputes or legal action.

1. Review the lease agreement

The first step is to check the lease agreement to understand the provisions on early termination. Some agreements may have a clause that allows either party to terminate the agreement early, while others may not.

If the lease agreement has a provision for early termination, it may specify the notice period required, penalties, and other requirements. The party terminating the lease term early must fulfill these requirements to avoid disputes.

2. Negotiate with the other party

If the lease agreement does not have a provision for early termination, both parties should try to negotiate and come to an agreement. This will help to avoid legal action and disputes.

The party terminating the lease term early may propose a buyout or early termination fee to compensate the landlord for any losses incurred. Alternatively, the landlord may agree to waive the notice period or release the tenant from further payments.

3. Provide written notice

Regardless of whether the lease agreement has a provision for early termination or not, both parties must give written notice of their intention to terminate the agreement early. The notice should specify the reason for early termination and the date on which it will occur.

The notice period required may vary depending on the lease agreement and state laws. However, most states require a notice period of 30 to 60 days.

Conclusion

Early termination of a tenancy agreement contract may be necessary in unforeseen circumstances. However, it is essential to understand the lease agreement`s provisions on early termination and the legal requirements involved.

Both parties should try to negotiate and come to an agreement to avoid legal action and disputes. If negotiations fail, the party terminating the lease term early must provide written notice and fulfill any requirements specified in the agreement or state laws.