Termination Of Lease Agreement

Termination Of Lease Agreement Date: March 14, 2025 A Lease Agreement Terminates Due To: - Destruction of property - Merger - Expiry of time - Effluxion of time - Mutual agreement - Notice to quit - Use of Forfeiture & Insolvency clauses in the agreement - Eviction Destruction Of Property - If the property is significantly / wholly destroyed by a fire, earthquake or casualty, without tenant negligence, the tenant have the right to end the lease early, as the essential of the lease agreement, the subject matter of lease won't be available. Tenant is relieved from paying rent on the damaged property. - But note that in the case that casualty/damage is caused by Tenant's gross negligence or intentional conduct, the tenant does not have the right to terminate the lease and will remain responsible for the damage he caused on landlord property. Merger - Merger occurs when tenant acquires the landlord's freehold interest, the lease then merges into the freehold hence terminating the lease agreement. - This is because when a merger occurs debtor and creditor of a contract become the same person, tenant has become the landlord also by purchasing the property under lease, resulting in termination of the contractual obligations. - E.g. Landlord A is leasing a flat to tenant B. B then purchases the flat from A, B will then become both the landlord and the tenant in the lease agreement therefore terminating lease agreement Effluxion Of Time - The expiration of a lease term due to a natural passing of time rather than from a specific action or event Expiry Of Time - Lease ends on the expiration date refers to the date that lease agreement is required to end according to landlord tenant agreement- Fixed term leases e.g. 1 year lease. - Tenant is required to vacate the landlord premises on the expiration of the lease. Mutual Agreement - It is used when both parties agree to release each other from the lease agreement before the actual ending date (e.g. landlord selling property / tenant leaving for a new job or marriage. - Both parties negotiate to the point where they protect their respective interests they then agree to end lease on certain terms. After which they create and sign a mutual lease termination contract, with the agreed terms of ending the lease Notice To Quit - It is a lease termination letter written by either the landlord or tenant informing the other party the intention to end lease agreement, with the date the tenancy will end stated - It is used to end a lease agreement early (breach) or to confirm that an expiring lease term will not be renewed Surrender - It can be by deed or be implied by operation of law - The tenant voluntarily gives up his interest of being a tenant in the premises and the landlord takes possession of the premises - E.g. the tenant removes possessions when he has to hurriedly accept a job in another country, vacate the property and returning the keys to the landlord. It is effective if accepted by the landlord otherwise lease continues. Forfeiture And Insolvency Clauses - The right to forfeit a lease in the event of a tenant's breach (failure to pay rent or renovate premises as agreed)/terminate lease where tenant has become insolvent is usually expressly provided for in the lease. - When these occur then landlord ends the lease agreement Eviction - An eviction is an order from a judge removing tenant from landlord premises, generally against tenant will (after tenant failed to comply, pay, or vacate within the specified timeframe given by the landlord - So using eviction landlord go through the county court to remove tenant from the rental unit. - It is a legal process used usually for problematic tenants who refuse to perform as expected in the lease.