The Lease Break Agreement is essential in Malaysian property transactions where parties wish to terminate a lease before its natural expiration date. This document is commonly used when circumstances require early termination by mutual consent, such as business relocations, downsizing, or other commercial necessities. The agreement must comply with Malaysian property law, including the National Land Code 1965 and the Contracts Act 1950. It typically includes provisions for termination dates, financial settlements, property restoration requirements, and mutual releases. The document serves to protect both landlord and tenant interests by clearly defining their rights and obligations during the termination process, preventing future disputes, and ensuring a smooth transition of property possession.
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1. Parties: Identification of the landlord and tenant, including full legal names, addresses, and any registration numbers for companies
2. Background: Details of the original lease agreement, including date of execution, property details, and reason for early termination
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Property', 'Original Lease', etc.
4. Agreement to Terminate: The mutual agreement to terminate the lease early and the effective termination date
5. Financial Settlement: Details of any final payments, security deposit returns, and settlement of outstanding utilities
6. Handover Requirements: Specific conditions for returning the property, including cleaning and repair obligations
7. Release and Waiver: Mutual release from future obligations under the original lease
8. Governing Law: Confirmation that the agreement is governed by Malaysian law
1. Restoration Works: Required for properties where specific restoration or reinstatement works must be completed before handover
2. Fixtures and Fittings: Include when there are specific arrangements regarding removal or transfer of tenant's fixtures
3. Third Party Consents: Required when the termination needs approval from third parties like mortgagees or superior landlords
4. Insurance: Include when specific insurance arrangements need to be maintained until handover
5. Confidentiality: Required for commercial properties where the terms of termination should remain confidential
1. Schedule 1 - Property Details: Detailed description of the property including address and any relevant title details
2. Schedule 2 - Financial Settlement Statement: Breakdown of all financial settlements including deposit returns, final utility payments, and any agreed compensation
3. Schedule 3 - Handover Inspection Checklist: Detailed checklist for property inspection and condition assessment at handover
4. Appendix A - Original Lease Agreement: Copy of the original lease agreement being terminated
5. Appendix B - Photographic Schedule: Current photographs of the property condition (if required)
Relevant legal definitions
Agreement
Original Lease
Property
Landlord
Tenant
Commencement Date
Termination Date
Security Deposit
Lease Term
Handover Date
Utility Charges
Outstanding Payments
Premises
Working Day
Notice Period
Handover Inspection
Settlement Amount
Release Date
Property Manager
Keys
Fixtures
Inspection Report
Settlement Statement
Governing Law
Identity Card
Company Registration Number
Original Lease
Property
Landlord
Tenant
Commencement Date
Termination Date
Security Deposit
Lease Term
Handover Date
Utility Charges
Outstanding Payments
Premises
Working Day
Notice Period
Handover Inspection
Settlement Amount
Release Date
Property Manager
Keys
Fixtures
Inspection Report
Settlement Statement
Governing Law
Identity Card
Company Registration Number
Clauses
Interpretation
Mutual Agreement to Terminate
Termination Date
Financial Settlement
Security Deposit
Outstanding Payments
Property Handover
Inspection Requirements
Release and Discharge
Confidentiality
Further Assurance
Entire Agreement
Severability
Governing Law
Jurisdiction
Notices
Third Party Rights
Assignment
Waiver
Costs
Utilities Settlement
Property Restoration
Keys and Access
Surviving Provisions
Registration
Mutual Agreement to Terminate
Termination Date
Financial Settlement
Security Deposit
Outstanding Payments
Property Handover
Inspection Requirements
Release and Discharge
Confidentiality
Further Assurance
Entire Agreement
Severability
Governing Law
Jurisdiction
Notices
Third Party Rights
Assignment
Waiver
Costs
Utilities Settlement
Property Restoration
Keys and Access
Surviving Provisions
Registration
Relevant Industries
Real Estate
Retail
Commercial Office
Industrial
Hospitality
Healthcare
Education
Manufacturing
Logistics
Professional Services
Relevant Teams
Legal
Real Estate
Operations
Finance
Facilities Management
Corporate Services
Risk & Compliance
Administration
Property Management
Relevant Roles
Property Manager
Facilities Manager
Real Estate Director
Legal Counsel
Operations Manager
Chief Financial Officer
Asset Manager
Leasing Manager
Company Secretary
Contract Administrator
Corporate Services Manager
Risk Manager
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