The Early Termination of Lease Agreement is a crucial document used when both parties mutually agree to end a lease before its natural expiration, or when provisions in the original lease agreement allow for early termination. This document is particularly important in the Saudi Arabian context, where it must comply with both the Saudi Tenancy Law and Sharia principles. It serves to protect both parties' interests by clearly documenting the termination terms, financial settlements, and property handover requirements. The agreement is commonly used in both residential and commercial contexts, and may need to be registered with relevant authorities such as the Ejar platform. It includes specific provisions required under Saudi law, such as witness signatures where applicable, and addresses key aspects like security deposit returns, utility transfers, and final settlement terms. The document is essential for maintaining clear records and preventing future disputes in lease terminations.
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1. Parties: Identification of the Landlord and Tenant with full legal names and contact details
2. Background: Reference to the original lease agreement, its date, and brief context for the early termination
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Property', 'Original Lease', etc.
4. Termination Date: Specific date when the lease will be terminated and the tenant will vacate the property
5. Settlement of Dues: Details of any outstanding rent, utilities, or other payments to be settled
6. Security Deposit: Arrangements for the return or adjustment of the security deposit
7. Property Handover: Conditions and process for returning the property to the landlord
8. Release of Obligations: Mutual release from future obligations under the original lease
9. Governing Law: Confirmation that the agreement is governed by Saudi Arabian law
10. Execution: Signature blocks and execution requirements
1. Property Inspection: Details of property inspection requirements and procedures, used when specific damage assessment is needed
2. Renovation Requirements: Specific repairs or renovations required before handover, included if property restoration is needed
3. Third Party Notifications: Requirements to notify utility companies or governmental authorities, included if required by local regulations
4. Future References: Agreement regarding tenant references, included when requested by tenant
5. Dispute Resolution: Specific dispute resolution procedures, included for high-value properties or complex situations
1. Schedule 1: Original Lease Details: Copy or key details of the original lease agreement
2. Schedule 2: Property Inventory: Current inventory and condition of the property and fixtures
3. Schedule 3: Financial Settlement Statement: Detailed breakdown of all financial settlements including rent, deposits, and deductions
4. Schedule 4: Handover Checklist: Checklist for property inspection and handover procedures
5. Appendix A: Photographic Evidence: Photos documenting the current condition of the property
6. Appendix B: Utility Accounts: List of utility accounts and status of payments
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