The Termination of Rental Agreement is a crucial document used in the Malaysian property market when either the landlord or tenant wishes to formally end their rental relationship. It's particularly important as it provides legal protection for both parties under Malaysian law, specifically adhering to the National Land Code 1965 and Contracts Act 1950. This document is typically used when a lease is being terminated either at its natural end, through mutual agreement, or under specific circumstances outlined in the original tenancy agreement. It covers essential elements such as the final settlement of accounts, property handover procedures, and the release of security deposits, while ensuring all parties' rights are protected and obligations are clearly documented. The agreement helps prevent future disputes by clearly stating the terms of separation and mutual release of responsibilities.
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1. Parties: Identification of the landlord and tenant, including full names, identification numbers, and addresses
2. Background: Brief recital of the original tenancy agreement details, including date of execution and property address
3. Definitions: Key terms used in the termination agreement
4. Termination Date: Specific date when the tenancy will be terminated and the property must be vacated
5. Outstanding Payments: Statement of any rent arrears, utility bills, or other payments due up to the termination date
6. Security Deposit: Details of security deposit refund or deductions
7. Handover Procedures: Process for returning keys and inspecting the property
8. Release and Discharge: Mutual release from obligations under the original tenancy agreement
9. Governing Law: Confirmation that the agreement is governed by Malaysian law
1. Damages and Repairs: Details of any damages to the property and required repairs, used when property damage has been identified
2. Early Termination Fee: Details of any penalties or fees for early termination, included when termination occurs before the original end date
3. Utilities Transfer: Procedures for transferring or terminating utility accounts, included when utilities are registered under tenant's name
4. Forwarding Address: New address details for the tenant, included when needed for future correspondence or deposit return
5. Personal Property: Provisions regarding removal of tenant's personal property, included when there are specific arrangements needed
1. Schedule 1 - Property Details: Detailed description of the rental property including address and specific unit details
2. Schedule 2 - Inventory List: List of landlord's fixtures and fittings in the property and their condition
3. Schedule 3 - Outstanding Payments Schedule: Detailed breakdown of any outstanding payments, including rent, utilities, and other charges
4. Schedule 4 - Property Inspection Report: Current condition of the property and any identified damages or issues
5. Appendix A - Original Tenancy Agreement: Copy of the original tenancy agreement being terminated
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