The Early Lease Termination Agreement is a crucial document used in Australian property law when both parties agree to end a lease before its scheduled expiration date. This document is essential when circumstances require premature termination of either residential or commercial leases, such as unexpected relocations, business changes, or mutual agreement to end the tenancy early. It complies with Australian state and federal legislation, including relevant Residential Tenancies Acts and consumer protection laws. The agreement typically includes specific details about the termination date, financial settlements, property condition requirements, and mutual releases. It serves to protect both parties' interests by clearly documenting the terms of the early termination and preventing future disputes.
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1. Parties: Identification of the landlord/lessor and tenant/lessee with full legal names and addresses
2. Background: Brief context about the existing lease agreement and the mutual decision to terminate early
3. Definitions: Key terms used throughout the agreement including 'Termination Date', 'Original Lease', 'Premises'
4. Agreement to Terminate: Formal statement of mutual agreement to terminate the lease early and the effective termination date
5. Financial Settlement: Details of any final rent payments, pro-rata calculations, and other financial obligations
6. Security Deposit: Process and timeline for the return of the security deposit, including any deductions
7. Vacant Possession: Tenant's obligations regarding the condition of the property upon surrender
8. Release and Waiver: Mutual release of future claims and obligations under the original lease
9. Governing Law: Specification that the agreement is governed by Australian law
10. Execution: Signature blocks for all parties and witnesses
1. Outstanding Repairs: Include when there are specific repair or maintenance issues that need to be addressed before termination
2. Utilities and Services: Include when there are specific requirements regarding the disconnection or transfer of utilities
3. Keys and Access Devices: Include when there are multiple sets of keys or access devices to be returned
4. Forwarding Address: Include when there's a need to specify requirements for the tenant to provide forwarding contact information
5. Break Fee: Include when there's a specific break fee to be paid as part of the early termination
6. Third Party Consents: Include when other parties (such as guarantors or mortgagees) need to consent to the termination
1. Schedule 1 - Property Inventory: Detailed list of any furniture, fixtures, or fittings and their condition
2. Schedule 2 - Financial Statement: Detailed breakdown of all financial calculations including rent, utilities, and any deductions
3. Schedule 3 - Property Condition Report: Current condition of the property compared to the initial condition report
4. Appendix A - Original Lease Agreement: Copy of the original lease agreement being terminated
5. Appendix B - Photographs: Documentary evidence of the property's condition at termination
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