The Cancellation of Lease Agreement is a crucial document used in Malta when both parties mutually agree to terminate an existing lease before its natural expiration or to formally document the end of a lease. It is governed by Maltese law, particularly the Civil Code (Chapter 16) and the Private Residential Leases Act 2020 for residential properties. This document is essential for properly documenting the termination terms, protecting both parties' interests, and ensuring compliance with local regulations. It typically includes provisions for property handover, security deposit return, settlement of outstanding obligations, and mutual release from future commitments. The agreement is particularly important in Malta's regulated property market, where formal documentation of lease terminations is required, especially for registered residential leases that need to be deregistered with the Housing Authority.
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1. Parties: Identification of the Lessor and Lessee with full legal names, identification numbers, and addresses
2. Background: Details of the original lease agreement including date of execution, property address, and registration number with Housing Authority if applicable
3. Definitions: Definitions of key terms used in the agreement including 'Lease Agreement', 'Property', 'Termination Date', and 'Security Deposit'
4. Mutual Agreement to Terminate: Express statement of both parties' agreement to terminate the lease and the effective termination date
5. Release of Obligations: Mutual release from future obligations under the lease agreement, subject to completion of termination conditions
6. Security Deposit: Provisions regarding the return of the security deposit, including timing and any deductions
7. Property Handover: Requirements for the condition of the property upon return, inspection procedures, and key return
8. Outstanding Payments: Settlement of any outstanding rent, utilities, or other payments
9. Governing Law: Confirmation that the agreement is governed by the laws of Malta
10. Execution: Signature blocks for all parties and witnesses
1. Early Termination Fee: Required when the cancellation occurs before the natural end of the lease term and includes any agreed compensation
2. Utilities Transfer: Include when there are specific requirements for transferring or terminating utility accounts
3. Forwarding Address: Used when the tenant needs to provide a forwarding address for future correspondence or deposit return
4. Surviving Obligations: Needed when certain obligations survive the termination (e.g., confidentiality clauses)
5. Housing Authority Notification: Required for registered residential leases that need formal deregistration
6. Personal Property: Include when addressing the removal or disposal of any tenant's remaining personal property
1. Schedule 1 - Property Inspection Report: Detailed report of the property's condition at termination
2. Schedule 2 - Outstanding Payments Statement: Itemized list of any outstanding payments or credits
3. Schedule 3 - Security Deposit Calculation: Breakdown of security deposit return calculation including any deductions
4. Appendix A - Original Lease Agreement: Copy of the original lease agreement being terminated
5. Appendix B - Property Photographs: Dated photographs documenting the property's condition at termination
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