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Breaking Lease Agreement for Hong Kong

Breaking Lease Agreement Template for Hong Kong

A Breaking Lease Agreement is a formal legal document used in Hong Kong to mutually terminate a lease agreement before its original expiration date. This document outlines the terms and conditions for early termination, including the agreed termination date, settlement of outstanding payments, property handover requirements, and mutual release of future obligations. It ensures compliance with Hong Kong's Landlord and Tenant (Consolidation) Ordinance and related property laws, providing legal protection for both landlord and tenant while documenting their agreement to end the lease early.

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What is a Breaking Lease Agreement?

A Breaking Lease Agreement is essential when parties to a lease in Hong Kong wish to terminate their rental arrangement before the originally agreed end date. This document is commonly used in situations where either the tenant needs to vacate early or the landlord requires early possession, and both parties agree to the termination. It must comply with Hong Kong's property laws, particularly the Landlord and Tenant (Consolidation) Ordinance, and should address key aspects such as financial settlements, property condition requirements, and mutual releases. The agreement helps prevent future disputes by clearly documenting the termination terms, responsibilities of each party, and the agreed handover process. It's particularly important in Hong Kong's dynamic property market where both residential and commercial lease terminations need to be handled with precise legal documentation.

What sections should be included in a Breaking Lease Agreement?

1. Parties: Identification of the Landlord and Tenant, including their full legal names and addresses

2. Background: References to the original lease agreement, its date, and the parties' mutual agreement to terminate early

3. Definitions: Key terms used in the agreement, including 'Original Lease', 'Termination Date', and 'Property'

4. Early Termination: Specific agreement to terminate the lease, stating the agreed termination date and confirmation that both parties consent

5. Settlement Terms: Financial settlement including rent, utilities, and other charges up to the termination date

6. Property Handover: Requirements for the condition of the property upon return, inspection process, and key return

7. Release and Discharge: Mutual release from future obligations under the original lease post-termination

8. Governing Law: Confirmation that the agreement is governed by Hong Kong law

9. Execution: Signature blocks for all parties and witnesses

What sections are optional to include in a Breaking Lease Agreement?

1. Security Deposit Return: Terms for the return of the security deposit, including deductions if applicable. Include when there is a security deposit under the original lease

2. Outstanding Repairs: Specific provisions for repairs required before handover. Include when property repairs are needed

3. Reinstatement Works: Requirements for returning the property to its original condition. Include when alterations were made during the tenancy

4. Utilities Transfer: Process for transferring or terminating utility accounts. Include when utilities are registered in tenant's name

5. Forwarding Address: Tenant's new address for future correspondence. Include when ongoing communication may be needed

6. Third Party Consents: Acknowledgment of required consents from mortgagee or building management. Include when third-party approval is needed

What schedules should be included in a Breaking Lease Agreement?

1. Schedule 1 - Property Details: Detailed description of the property including address and identifying features

2. Schedule 2 - Original Lease Terms: Key terms from the original lease including commencement date, original termination date, and rent

3. Schedule 3 - Settlement Calculation: Detailed breakdown of all financial settlements including rent, deposits, and deductions

4. Schedule 4 - Property Condition Report: Current condition of the property and any agreed repairs or maintenance required

5. Appendix A - Handover Checklist: Checklist of items to be completed before and during property handover

6. Appendix B - Photographic Evidence: Photos documenting the property condition at termination (if required)

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Hong Kong

Cost

Free to use

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