The Cancellation of Rent Agreement Letter is a crucial document in Pakistani property law practice, used when either a landlord or tenant wishes to formally terminate an existing rental agreement. This document is essential in both residential and commercial contexts, requiring compliance with the Transfer of Property Act 1882, provincial rent control acts, and local ordinances. The letter serves multiple purposes: it provides formal notice of termination, documents the agreed termination date, outlines the process for property handover, addresses security deposit returns, and ensures all parties have clear written evidence of the agreement's end. It's particularly important in Pakistan where rental disputes are common and proper documentation is crucial for legal protection. The document must be drafted carefully to include all required elements under Pakistani law, including appropriate notice periods which vary by province and property type.

1. Date and Address Block: Current date and full addresses of both parties (landlord and tenant)

2. Subject Line: Clear indication that this is a cancellation notice for rental agreement with reference number/date

3. Reference Details: Details of the original rental agreement including date of execution and property address

4. Notice of Cancellation: Clear statement of intention to terminate the rental agreement and the effective date

5. Reason for Cancellation: Brief explanation of the reason for termination (if applicable)

6. Handover Details: Proposed date and process for property handover

7. Settlement Statement: Statement regarding settlement of all dues and pending payments

8. Closing and Signatures: Formal closing, space for signatures of both parties, and date of signing