Terminating a lease can sometimes be necessary depending on the circumstances of the situation. While they should be avoided, it can be happened that either party needs to terminate a lease. When doing so, you should consider the following tips:
- Make sure the lease termination doesn’t violate the terms of an existing lease agreement. For instance, some lease arrangements can be terminated at any time (like an at-will tenancy).
- Be sure to consider issues that you may have forgotten about at the beginning of the lease period (such as a rental deposit or down payment).
- If you are unsure, it can be possible to form a separate lease termination agreement, which can overrule a previous lease agreement.
Notice is usually needed before terminating a lease. Failing to provide sufficient notice is often the cause of many landlord-tenant disputes.
No- terminating a residential lease agreement is often much different than terminating a commercial lease. This is of course due to the business aspects associated with a commercial lease. In some cases, early termination of a business lease can have greater consequences in the big picture, such as a loss of profit, loss of business reputation, and other issues.
Most commercial lease agreements will include a specific clause that addressees the consequences and penalties for an early lease termination.
Lease termination can often cause financial losses, especially if it’s done in a way that violates the original agreement between landlord and tenant. If an improper lease termination causes losses, you may need to take legal action. It may be necessary to file a claim with the court in order to address issues such as breach of contract and other concerns. A broken lease agreement will often result in a damages award to the non-breaching party.
Lease agreements can often involve complex legal issues. You may need to hire a real estate lawyer if you’re facing a dispute over a lease or rental agreement. Your attorney can provide you with legal advice, information, and representation for your claim. Also, your lawyer can help you obtain a legal remedy for any losses resulting from a violation.