Termination Of A Lease Agreement for Malaysia

Termination Of A Lease Agreement Template for Malaysia

A formal legal document governed by Malaysian law that officially terminates an existing lease agreement between a landlord and tenant. The document outlines the terms and conditions for ending the lease, including the termination date, settlement of outstanding payments, return of security deposits, property inspection requirements, and the mutual release of obligations. It ensures compliance with Malaysian property laws, including the National Land Code 1965 and relevant state-specific regulations, while providing legal protection for both parties during the lease termination process.

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What is a Termination Of A Lease Agreement?

The Termination of a Lease Agreement is essential in Malaysian property transactions when parties wish to formally end their landlord-tenant relationship before or at the natural conclusion of a lease term. This document is crucial for protecting both parties' interests under Malaysian law, including the National Land Code 1965 and state-specific regulations. It addresses key aspects such as the return of security deposits, settlement of utilities and outstanding payments, property condition requirements, and the formal handover process. The agreement becomes particularly important in situations involving early termination, dispute resolution, or when specific conditions need to be met before the lease can be terminated. It serves as a legally binding record of the parties' agreement to end their lease obligations and prevents future disputes by clearly documenting the terms of separation.

What sections should be included in a Termination Of A Lease Agreement?

1. Parties: Identification of the Landlord and Tenant with their full legal names, identification numbers, and addresses

2. Background: Reference to the original lease agreement, including its date, property details, and current status

3. Definitions: Definitions of key terms used in the termination agreement

4. Termination Date: Clear specification of when the lease will be terminated

5. Security Deposit: Provisions regarding the return or forfeiture of the security deposit

6. Outstanding Payments: Settlement of any pending rent, utilities, or other charges

7. Property Inspection: Requirements for final inspection and condition assessment of the property

8. Handover Process: Procedure for returning keys and vacating the property

9. Release of Obligations: Mutual release of future obligations under the original lease

10. Governing Law: Specification that Malaysian law governs the agreement

11. Execution: Signature blocks and execution details

What sections are optional to include in a Termination Of A Lease Agreement?

1. Dispute Resolution: Include when there are existing disputes or potential areas of disagreement that need to be addressed

2. Renovation Works: Include when the property requires restoration or repair work before handover

3. Surviving Obligations: Include when certain obligations need to continue after termination

4. Third Party Rights: Include when there are sublease or assignment arrangements that need to be terminated

5. Early Termination Fee: Include when the termination occurs before the original lease end date

6. Confidentiality: Include for commercial properties or when sensitive information is involved

7. Return of Equipment: Include when furnished properties or additional equipment were part of the lease

What schedules should be included in a Termination Of A Lease Agreement?

1. Schedule 1 - Property Details: Detailed description of the property including address and any included fixtures/fittings

2. Schedule 2 - Original Lease Agreement: Copy or key details of the original lease agreement being terminated

3. Schedule 3 - Payment Settlement: Detailed breakdown of all financial settlements including deposits, outstanding payments, and deductions

4. Schedule 4 - Property Condition Report: Current condition report and comparison with initial condition

5. Schedule 5 - Handover Checklist: List of items to be checked and completed during the handover process

6. Appendix A - Photographic Evidence: Photos documenting the property's condition at termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Real Estate

Property Management

Residential Property

Commercial Property

Retail

Industrial

Hospitality

Office Space

Agriculture

Manufacturing

Relevant Teams

Legal

Real Estate

Property Management

Facilities Management

Operations

Administration

Compliance

Risk Management

Asset Management

Relevant Roles

Property Manager

Real Estate Manager

Facilities Manager

Legal Counsel

Contract Administrator

Estate Agent

Leasing Manager

Asset Manager

Property Administrator

Operations Manager

Company Secretary

Risk Manager

Compliance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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