Other Names: Early Termination of Lease Agreement Lease Termination Agreement Cash for Keys Agreement Termination of Lease Agreement Cancellation of Lease Agreement Letter to Cancel Lease Agreement Agreement to Nullify Lease
An Agreement to Cancel Lease is a contract that allows for canceling a lease or rental agreement before the original term ends. This agreement can apply to commercial and residential leases and is sometimes referred to as a Cash for Keys Agreement. It is a useful tool for landlords or property managers to reach an amicable agreement with a tenant who needs to vacate a property.
The Agreement to Cancel Lease should only be used when both the landlord and tenant agree to alter the original lease term's ending date. This agreement is not designed for situations where one party seeks to unilaterally end the rental relationship, such as when a landlord tries to evict a tenant for non-payment of rent. To be legally effective, both parties must sign the agreement.
An Agreement to Cancel Lease should include details such as the rental property's address, the landlord and tenant's contact information, the end date of the original lease, the new lease termination date, and when both parties will sign the cancellation agreement. Depending on the lease's original conditions, there may be a penalty for canceling it, but parties may waive additional fees by mutual agreement.
Whether you're a landlord or tenant, there may be times when you need to terminate a lease before its original term ends. An Agreement to Cancel Lease, signed by both parties, dissolves the landlord-tenant relationship and allows parties to find new rental situations that suit their needs.
