The Early Lease Termination Agreement is a crucial legal document used in Malta when both landlord and tenant agree to end a lease agreement before its scheduled expiration date. This document is essential for properly documenting the terms and conditions of the early termination, ensuring compliance with Maltese property law, particularly the Civil Code (Chapter 16) and the Private Residential Leases Act 2020. It typically becomes necessary when circumstances such as relocation, property sale, or mutual agreement lead to early lease termination. The agreement covers critical aspects including the agreed termination date, final settlements, property handover procedures, and mutual releases from future obligations. It serves as a protective measure for both parties by clearly defining their rights and responsibilities during the termination process, helping prevent future disputes and ensuring a smooth transition.
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1. Parties: Identification of the Landlord and Tenant, including full legal names, addresses, and identification numbers
2. Background: Brief recital of the original lease agreement details, including date of execution, property description, and desire to terminate early
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination Date: Specific date when the lease will terminate and the tenant will vacate the property
5. Mutual Release: Mutual release of obligations under the original lease agreement, subject to conditions in this termination agreement
6. Settlement of Accounts: Details of any final payments, including rent, utilities, and security deposit return
7. Property Inspection: Requirements for final inspection and condition assessment of the property
8. Keys and Access: Arrangements for returning keys and security devices
9. Governing Law: Confirmation that the agreement is governed by Maltese law
10. Signatures: Execution block for all parties to sign, including date and witness provisions
1. Early Termination Fee: Details of any agreed penalty or fee for early termination, if applicable
2. Forwarding Address: New address for tenant and arrangements for forwarding mail, if needed
3. Remaining Tenant Provisions: Required when multiple tenants exist and some are remaining in the property
4. Mediation Clause: Provision for dispute resolution through mediation before court proceedings
5. Property Marketing: Arrangements for landlord to show property to potential new tenants
6. Abandoned Property: Procedure for handling any property left behind by the tenant
7. Utility Transfer: Specific arrangements for transferring or terminating utility accounts
1. Schedule 1 - Original Lease Agreement: Copy of the original lease agreement being terminated
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 security deposit deductions if any
4. Schedule 4 - Handover Protocol: Checklist for property handover process and final inspection requirements
5. Appendix A - Photographic Evidence: Current dated photographs of the property condition (if required)
6. Appendix B - Utility Readings: Final utility meter readings and associated documentation
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