The Early Termination of Lease Agreement is a crucial document used in Hong Kong when both landlord and tenant mutually agree to end a lease before its scheduled expiry date. This document is essential in both residential and commercial contexts, providing a clear legal framework for early lease termination while ensuring compliance with Hong Kong's property laws and regulations. The agreement typically includes key elements such as the agreed termination date, financial settlements, property handover arrangements, and mutual releases from future obligations. It helps prevent potential disputes by clearly documenting the terms of termination and protects both parties' interests during the termination process. The document should be drafted in accordance with the Landlord and Tenant (Consolidation) Ordinance and other relevant Hong Kong legislation, making it particularly important to have proper legal review and documentation.
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1. Parties: Identification of the landlord and tenant, including full names, addresses, and contact details
2. Background: Brief overview of the existing lease agreement and the mutual decision to terminate early
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Property', 'Original Lease', etc.
4. Early Termination: Statement of agreement to terminate the lease early and specification of the termination date
5. Settlement of Accounts: Details of final rent payment, utilities, and other charges up to the termination date
6. Security Deposit: Arrangements for the return of the security deposit, including timing and any deductions
7. Handover Arrangements: Process and requirements for returning the property, including condition requirements and key return
8. Release and Discharge: Mutual release from obligations under the original lease post-termination
9. Governing Law: Confirmation that the agreement is governed by Hong Kong law
10. Execution: Signature blocks for all parties
1. Outstanding Repairs: Used when there are specific repair or maintenance issues that need to be addressed before termination
2. Third Party Consents: Required when the termination needs approval from mortgagee, management company, or other third parties
3. Replacement Tenant: Include when there are arrangements regarding a replacement tenant
4. Pro-rata Refunds: Used when there are prepaid amounts that need to be refunded (e.g., management fees, rates)
5. Break Fee: Include when a fee is being charged for early termination
6. Surviving Provisions: Used when certain provisions of the original lease need to survive the termination
1. Schedule 1 - Property Details: Full description of the property including address and identifying details
2. Schedule 2 - Original Lease: Details of the original lease agreement including date, parties, and key terms
3. Schedule 3 - Settlement Statement: Detailed breakdown of all financial settlements including rent, deposits, and any deductions
4. Schedule 4 - Property Condition Report: Current condition of the property and any agreed repairs or issues
5. Schedule 5 - Handover Inventory: List of items to be handed over (keys, access cards, furniture if applicable)
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