The Agreement to Break Lease Form is a crucial legal document used in Malaysian property management when both landlord and tenant agree to terminate a lease before its natural expiration. This document becomes necessary when circumstances require early termination of a tenancy, such as job relocations, property sales, or other significant changes in either party's situation. The agreement must comply with Malaysian property law, particularly the National Land Code 1965 and Contracts Act 1950, and typically includes comprehensive details about financial settlements, property condition requirements, and mutual releases. The document serves to protect both parties' interests and prevent future disputes by clearly documenting the terms of the early termination, making it an essential tool in Malaysian property management and real estate practices.
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1. Parties: Identification of all parties involved - the landlord/lessor and tenant/lessee, including full legal names, identification numbers, and addresses
2. Background: Brief context of the existing lease agreement including its original term, commencement date, and the mutual intention to terminate early
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination Date: Specified date when the lease will be terminated and the tenant will vacate the premises
5. Financial Settlement: Details of any financial arrangements including remaining rent, penalties, or compensation payments
6. Security Deposit: Arrangements for the return or forfeit of the security deposit
7. Property Condition: Requirements for the condition in which the property must be returned
8. Keys and Access: Arrangements for returning keys and other access devices
9. Final Utility Bills: Process for settling outstanding utility bills and transferring utility accounts
10. Release of Obligations: Mutual release of future obligations under the original lease
11. Governing Law: Specification that the agreement is governed by Malaysian law
12. Execution: Signing requirements and execution details
1. Remaining Tenants: Required when there are multiple tenants and only some are breaking the lease
2. Forwarding Address: Include when specific arrangements are needed for future correspondence or deposit return
3. Early Return Incentives: Include when the landlord is offering incentives for early vacation of the property
4. Maintenance Issues: Include when there are outstanding maintenance or repair issues to be resolved
5. Property Marketing: Include terms about showing the property to potential new tenants
6. Special Conditions: Any unique circumstances or agreements specific to the situation
1. Schedule A - Property Details: Detailed description of the property including address and any included fixtures/fittings
2. Schedule B - Financial Statement: Detailed breakdown of all financial settlements, including rent calculations and deposit deductions
3. Schedule C - Property Inspection Report: Current condition report and checklist for final inspection
4. Appendix 1 - Original Lease Agreement: Copy of the original lease agreement being terminated
5. Appendix 2 - Photographic Evidence: Photos documenting the property condition (if required)
Relevant legal definitions
Clauses
Interpretation
Termination Terms
Financial Settlement
Security Deposit
Property Condition
Handover Requirements
Release and Discharge
Representations and Warranties
Inspection Rights
Utilities and Services
Access and Keys
Notices
Further Assurance
Severability
Entire Agreement
Governing Law
Force Majeure
Dispute Resolution
Assignment
Costs and Expenses
Termination Terms
Financial Settlement
Security Deposit
Property Condition
Handover Requirements
Release and Discharge
Representations and Warranties
Inspection Rights
Utilities and Services
Access and Keys
Notices
Further Assurance
Severability
Entire Agreement
Governing Law
Force Majeure
Dispute Resolution
Assignment
Costs and Expenses
Relevant Industries
Real Estate
Property Management
Residential Housing
Commercial Property
Retail
Office Space
Industrial Property
Hospitality
Student Housing
Relevant Teams
Legal
Property Management
Real Estate Operations
Tenant Relations
Contracts Administration
Compliance
Asset Management
Facilities Management
Customer Service
Operations
Relevant Roles
Property Manager
Real Estate Agent
Leasing Manager
Legal Counsel
Property Administrator
Facility Manager
Asset Manager
Housing Officer
Tenant Relations Manager
Compliance Officer
Contract Administrator
Real Estate Operations Manager
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