The Lease Cancellation agreement is essential in Malaysian property transactions where parties mutually agree to terminate a lease before its scheduled end date. This document is commonly used when circumstances require early termination, such as business relocations, property sales, or mutual agreement to end the tenancy. It provides a legal framework under Malaysian law for documenting the parties' agreement to terminate, protecting both landlord and tenant interests. The document includes crucial elements such as termination date, financial settlements, property handover requirements, and mutual releases from future obligations. It ensures compliance with Malaysian property laws while providing clarity and certainty for all parties involved in the lease termination process.

1. Parties: Identification of the landlord and tenant, including their full legal names, registration numbers (if companies), and addresses

2. Background: Details of the existing lease agreement including its date, property details, and reference to registration (if applicable)

3. Definitions: Key terms used in the agreement including 'Effective Date', 'Property', 'Original Lease', etc.

4. Termination: Clear statement of mutual agreement to terminate the lease and the effective date of termination

5. Settlement of Obligations: Details of any final rent payments, utility bills, or other financial obligations to be settled

6. Security Deposit: Arrangements for the return of the security deposit, including any deductions if applicable

7. Handover of Property: Requirements and procedure for returning the property to the landlord

8. Mutual Release: Release of both parties from future obligations under the lease, subject to terms specified

9. Governing Law: Specification that the agreement is governed by Malaysian law

10. Execution: Signature blocks for all parties and witnesses