The Agreement to Break Lease Form is a crucial legal document used in Malaysian property management when both landlord and tenant agree to terminate a lease before its natural expiration. This document becomes necessary when circumstances require early termination of a tenancy, such as job relocations, property sales, or other significant changes in either party's situation. The agreement must comply with Malaysian property law, particularly the National Land Code 1965 and Contracts Act 1950, and typically includes comprehensive details about financial settlements, property condition requirements, and mutual releases. The document serves to protect both parties' interests and prevent future disputes by clearly documenting the terms of the early termination, making it an essential tool in Malaysian property management and real estate practices.
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1. Parties: Identification of all parties involved - the landlord/lessor and tenant/lessee, including full legal names, identification numbers, and addresses
2. Background: Brief context of the existing lease agreement including its original term, commencement date, and the mutual intention to terminate early
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination Date: Specified date when the lease will be terminated and the tenant will vacate the premises
5. Financial Settlement: Details of any financial arrangements including remaining rent, penalties, or compensation payments
6. Security Deposit: Arrangements for the return or forfeit of the security deposit
7. Property Condition: Requirements for the condition in which the property must be returned
8. Keys and Access: Arrangements for returning keys and other access devices
9. Final Utility Bills: Process for settling outstanding utility bills and transferring utility accounts
10. Release of Obligations: Mutual release of future obligations under the original lease
11. Governing Law: Specification that the agreement is governed by Malaysian law
12. Execution: Signing requirements and execution details
1. Remaining Tenants: Required when there are multiple tenants and only some are breaking the lease
2. Forwarding Address: Include when specific arrangements are needed for future correspondence or deposit return
3. Early Return Incentives: Include when the landlord is offering incentives for early vacation of the property
4. Maintenance Issues: Include when there are outstanding maintenance or repair issues to be resolved
5. Property Marketing: Include terms about showing the property to potential new tenants
6. Special Conditions: Any unique circumstances or agreements specific to the situation
1. Schedule A - Property Details: Detailed description of the property including address and any included fixtures/fittings
2. Schedule B - Financial Statement: Detailed breakdown of all financial settlements, including rent calculations and deposit deductions
3. Schedule C - Property Inspection Report: Current condition report and checklist for final inspection
4. Appendix 1 - Original Lease Agreement: Copy of the original lease agreement being terminated
5. Appendix 2 - Photographic Evidence: Photos documenting the property condition (if required)
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