The Termination Of A Lease Agreement is a crucial document used in Saudi Arabia when parties wish to formally end their lease arrangement, whether at the natural conclusion of the lease term or through early termination. This document is essential for both residential and commercial properties, ensuring compliance with Saudi Civil Code and relevant property laws. It serves multiple purposes: documenting the mutual agreement to end the lease, establishing the termination date, outlining the conditions for property handover, addressing security deposit returns, and providing for the settlement of any outstanding obligations. The agreement must align with both Saudi legal requirements and Shariah principles, making it particularly important to include specific provisions required by local law. It protects both landlord and tenant interests by clearly documenting the termination terms and preventing future disputes.
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1. Parties: Identification of the Landlord and Tenant with full legal names and addresses
2. Background: Reference to the original lease agreement, its date, property details, and current status
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Property', 'Original Lease', and 'Security Deposit'
4. Termination Agreement: Mutual agreement to terminate the lease or notice of exercise of termination right
5. Termination Date: Specific date when the lease will terminate and tenant will vacate
6. Property Inspection: Requirements for final property inspection and condition assessment
7. Security Deposit: Arrangements for the return or application of the security deposit
8. Outstanding Payments: Settlement of any remaining rent, utilities, or other charges
9. Keys and Access: Arrangements for returning keys and property access devices
10. Release of Obligations: Mutual release of future obligations under the original lease
11. Governing Law: Confirmation that Saudi Arabian law governs the agreement
12. Execution: Signature blocks for all parties
1. Early Termination Fee: Include when early termination penalties apply as per original lease terms
2. Forwarding Address: Include when tenant needs to provide future contact details for deposit return or final bills
3. Reinstatement Obligations: Include when tenant must restore property to original condition beyond normal wear and tear
4. Surviving Obligations: Include when certain lease terms should survive termination
5. Dispute Resolution: Include detailed dispute resolution procedures for complex terminations
6. Property Advertising: Include when agreement covers arrangements for showing property to new tenants
7. Personal Property: Include when addressing abandoned property handling
1. Schedule 1 - Original Lease: Copy or key details of the original lease agreement
2. Schedule 2 - Property Inventory: Current inventory and condition report of the property
3. Schedule 3 - Payment Settlement: Detailed breakdown of final payments, deposits, and deductions
4. Schedule 4 - Handover Checklist: List of items to be checked during final inspection
5. Appendix A - Property Photographs: Current dated photographs of property condition
6. Appendix B - Utility Accounts: List of utility accounts to be closed or transferred
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