Lease termination agreement to end the tenancy

A land or a house is given to someone for use at a fixed periodic payment in return, only for a certain time period. When the time for the lease is over, that contract is also over. But apart from the end of the tenure of lease there are many other reasons also for ending the tenancy like breach of any clause, non-payment of rent, or even for the personal use of the landlord etc. The lease can be conveniently terminated with the mutual consent of both the parties by signing a lease termination agreement.

For ending the lease contract the basic elements you must keep in your mind are:

1.Reason to end the lease: There must be a proper reason to end the lease that why either of or both the parties want to end the lease contract. Whether the time period for lease is over, or it’s the failure of tenant to pay the rent, violation of any of the clauses to use the property etc., which should be mentioned in the agreement.

2.A proper notice for that: Before ending the contract by any party, a notice should be given to the other party specifying the time span within which the property is to be vacated so that they could manage and arrange the things accordingly.

3.Liabilities while leaving the property: When the tenants leave the property they must fulfill all the liabilities, like returning all the keys to the landlord and handing over the property in the well- maintained condition as it was at the initial time of lease.

4.Mutual agreement of both the parties: Both the parties should approve the terms of ending the lease and sign the lease termination agreement and keep a copy of it with them.

To avoid any sort of problems later on all the things should be on the mutual consent of landlord and tenant.

Lease restructuring- a possible breather in hard times

Market is all about uncertainty. The highest truth about any commercial domain is that nobody enjoys its heyday for so long & even nobody suffers from downfall too that long. And every time the global scenario fluctuates, we adjust our day-to-day living to it. House rental is a macroeconomic business as the multi-nationals or retail-chains are now on an expansion-of-market spree. This trend has boosted the economy greatly by exploiting vacant property that has become rusty out of no use.

Although the commercial enterprises as well as the individual renters agree to pay some healthy cash as rent, the meltdown of market economy force them both to recast the payment tariff. They now try to come to a settlement with the landlord/lady to make them acquiesce to their capability. This situational call is referred as lease restructuring. Notwithstanding the previous statement, sometimes the restructuring can be called by the other way round i.e. the land-principle in cases of considerable disparity between the market value & existent rental charge. In both the situation, it is substantial difference of what is getting paid & what should be paid that triggers the action. It is also justified to ask for a re-shuffling in the payment criterion of the original lease agreement when merger or contraction of accommodating space occurs. Expenditure made by the lessor for the improvement of living of the tenant could also entail modification in lease agreement due to the amortization cost that the tenant has to bear.

As we started this discussion, how justified it is to hold lease restructuring in a cult status in relieving common men’s life from afflicting financial burden in hard times like the one during Global Recession in 2007. Well, this is not technically an out-of-the-deed settlement & at times it is. But preferentially it is a mutual common point that the tenant & its land-owner upstart to handle the situation humanely.