The Early Termination of Tenancy Agreement is a crucial document used in the Philippine real estate market when parties need to formally end a lease agreement before its scheduled expiration date. It's designed to comply with Philippine property laws, including the Rent Control Act (Republic Act No. 9653) and relevant provisions of the Civil Code of the Philippines. This document is necessary when either the landlord or tenant needs to terminate the lease early due to various circumstances such as relocation, property sale, or other agreed reasons. It includes essential details about the termination date, financial settlements, property handover procedures, and mutual release clauses. The agreement protects both parties' interests by clearly documenting the terms of separation and ensuring compliance with local legal requirements for rental property transactions.
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1. Parties: Identification of the Landlord and Tenant, including complete names, addresses, and contact information
2. Background: Brief overview of the existing tenancy agreement, including its date, property details, and reason for early termination
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination Date: Specific date when the tenancy will end and confirmation of notice period compliance
5. Financial Settlement: Details of all financial matters including return of security deposit, remaining rent, and any agreed compensation
6. Property Inspection: Requirements for final inspection and assessment of property condition
7. Handover Procedures: Process for returning keys, clearing possessions, and vacating the property
8. Mutual Release: Statement releasing both parties from future obligations under the original lease
9. Governing Law: Confirmation that the agreement is governed by Philippine law
10. Signatures: Execution section for all parties to sign and date the agreement
1. Utilities Settlement: Procedures for transferring or terminating utility accounts, applicable when utilities are in tenant's name
2. Forwarding Address: Section for tenant's forwarding address, useful for security deposit return and future correspondence
3. Early Termination Fee: Details of any agreed penalty or fee for early termination, if applicable
4. Property Marketing: Arrangements for showing the property to potential new tenants, if agreed
5. Maintenance Issues: Documentation of any outstanding maintenance issues or repairs, if relevant
6. Third Party Rights: Provisions regarding guarantors or other third parties involved in the original lease
1. Schedule 1 - Property Inventory: Current inventory and condition report of the property
2. Schedule 2 - Financial Statement: Detailed breakdown of all financial calculations including rent, deposits, and deductions
3. Schedule 3 - Original Lease Reference: Copy or key details of the original lease agreement being terminated
4. Appendix A - Handover Checklist: Detailed checklist for property handover procedures
5. Appendix B - Utility Readings: Final utility meter readings and account numbers
6. Appendix C - Property Photographs: Current dated photographs of the property condition
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