The Early Termination of Lease Agreement is a crucial document used in Nigerian property law when both landlord and tenant agree to end a lease before its natural expiration. This document becomes necessary in various situations, such as when a tenant needs to relocate unexpectedly, when a landlord requires the property for other purposes, or when both parties mutually agree to end their lease relationship early. The agreement must comply with Nigerian federal legislation, including the Recovery of Premises Act, as well as state-specific tenancy laws. It typically includes provisions for the termination date, settlement of outstanding payments, property inspection requirements, and mutual releases. The document serves as a legal safeguard for both parties, preventing future disputes and clearly documenting the terms of the early termination.
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1. Parties: Identification of the Landlord and Tenant, including full legal names, addresses, and any registration numbers for corporate entities
2. Background: Reference to the original lease agreement, its date, property details, and brief context for the early termination
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Original Lease', 'Property', and 'Security Deposit'
4. Termination Agreement: Express agreement to terminate the lease early and specification of the exact termination date
5. Settlement of Accounts: Details of final rent payment, utility bills, and security deposit return
6. Property Inspection and Handover: Requirements for property condition, inspection process, and key return procedure
7. Mutual Release: Release of both parties from future obligations under the original lease
8. Governing Law: Confirmation that the agreement is governed by Nigerian law
9. Execution: Signature blocks for all parties and witnesses as required under Nigerian law
1. Outstanding Repairs: Include when there are specific repair obligations to be addressed before termination
2. Third Party Notifications: Include when there are requirements to notify utility companies, local authorities, or other relevant parties
3. Surviving Obligations: Include when certain obligations from the original lease need to survive termination
4. Return of Fixtures and Fittings: Include when there are specific arrangements regarding fixtures installed by the tenant
5. Confidentiality: Include when parties wish to keep the terms of the early termination private
6. Tax Implications: Include when there are specific tax considerations that need to be addressed
1. Schedule 1 - Original Lease Details: Copy or summary of key terms from the original lease agreement
2. Schedule 2 - Property Inventory: Current inventory and condition report of the property
3. Schedule 3 - Settlement Calculation: Detailed breakdown of all financial settlements including rent, deposits, and any deductions
4. Appendix A - Handover Checklist: Checklist of items to be completed before property handover
5. Appendix B - Utility Accounts: List of utility accounts and status of each account
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