The Termination of Lease Agreement by Tenant is a crucial document used in Saudi Arabia when a tenant wishes to formally end their lease agreement, whether at the end of the term or through early termination. This document must comply with Saudi Tenancy Law (2021) and Sharia principles, making it essential for both residential and commercial leases. It typically includes specific notice periods, property handover procedures, settlement terms, and security deposit arrangements. The agreement protects both parties' interests by clearly documenting the termination process, final obligations, and property condition requirements. It's particularly important in the Saudi Arabian context where formal documentation of property transactions is required for legal compliance and dispute prevention.
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1. Parties: Identification of the Landlord and Tenant with full legal names and contact details as registered in the lease agreement
2. Background: Brief recital of the existing lease agreement details including date of commencement, property address, and reference to original agreement
3. Definitions: Key terms used in the termination agreement including 'Termination Date', 'Property', 'Original Lease Agreement', and 'Final Settlement'
4. Termination Notice: Formal declaration of the tenant's intention to terminate the lease and specification of the termination effective date
5. Confirmation of Notice Period: Acknowledgment that the required notice period as per Saudi Tenancy Law and the original lease agreement has been provided
6. Outstanding Obligations: Statement regarding settlement of any outstanding rent, utility bills, or other financial obligations
7. Property Handover: Details of the property inspection and handover process, including condition requirements
8. Security Deposit: Arrangements for the return of the security deposit after property inspection and deductions if applicable
9. Final Settlement: Terms for the final settlement of all accounts between parties
10. Governing Law: Confirmation that the termination is governed by Saudi Law and Sharia principles
1. Early Termination Penalties: Required only if the termination occurs before the end of the agreed lease term, specifying any applicable penalties
2. Maintenance Obligations: Include when there are specific repair or restoration requirements before vacating
3. Forwarding Address: Optional section for tenant's new address for future correspondence
4. Utility Transfer: Include when there are specific requirements for transferring or disconnecting utilities
5. Key Return: Required when there are multiple sets of keys or access devices to be returned
6. Third Party Notifications: Include when there are requirements to notify building management, insurance companies, or other relevant parties
1. Schedule 1 - Property Inspection Checklist: Detailed checklist for property condition assessment during final inspection
2. Schedule 2 - Outstanding Payments Schedule: List of any pending payments or adjustments to be settled before termination
3. Schedule 3 - Handover Inventory: List of items to be returned including keys, access cards, and any landlord-provided furnishings
4. Appendix A - Original Lease Agreement: Copy of the original lease agreement for reference
5. Appendix B - Photographic Evidence: Photos documenting the property condition at termination (if required)
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