The Release of Lease Agreement is a crucial document in Canadian real estate practice, used when both landlord and tenant mutually agree to terminate their lease arrangement before the originally planned end date. This document is essential in situations such as early tenant relocation, property sale, or other circumstances requiring premature lease termination. It provides legal protection for all parties by clearly documenting the terms of the release, including important details such as the effective termination date, handling of security deposits, property condition requirements, and mutual releases from future claims. The agreement must comply with provincial/territorial legislation governing residential or commercial tenancies, as applicable, and should be carefully drafted to address all relevant aspects of the lease termination to prevent future disputes.
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1. Parties: Identifies and provides full legal names and addresses of the landlord and tenant(s)
2. Background: References the original lease agreement, including its date and property address, and briefly states the parties' desire to terminate the lease
3. Definitions: Defines key terms used in the agreement including 'Lease', 'Property', 'Release Date', and other relevant terms
4. Release and Termination: States the mutual agreement to terminate the lease and specifies the effective date of termination
5. Security Deposit: Details the handling and return of the security deposit, including any deductions and timeline for return
6. Property Condition: States requirements for the condition in which the property must be returned and inspection arrangements
7. Mutual Release: Contains mutual releases from future claims related to the lease
8. Final Payments: Details any final payments required, including rent, utilities, or other charges
9. Return of Keys: Specifies arrangements for returning keys and access devices
10. Governing Law: Specifies that the agreement is governed by relevant provincial/territorial law
11. Execution: Signature block for all parties and witnesses if required
1. Outstanding Obligations: Used when there are specific obligations that survive the termination or need to be settled
2. Confidentiality: Include when parties wish to keep the terms of the release confidential
3. Assignment and Sublease: Required if there are any existing subleases or assignments that need to be addressed
4. Holding Over: Include when there's a need to address potential continuation of occupancy beyond the release date
5. Indemnification: Used in commercial contexts or when specific indemnification provisions are needed
6. Restoration Requirements: Include for commercial properties or when specific restoration requirements exist
7. Survival: Used when certain provisions need to survive the termination
1. Schedule A - Property Inspection Report: Documents the condition of the property at the time of release
2. Schedule B - Settlement Statement: Itemizes any financial settlements, including security deposit deductions
3. Schedule C - Outstanding Obligations: Lists any surviving obligations or pending settlements
4. Appendix 1 - Original Lease: Copy of the original lease agreement being terminated
5. Appendix 2 - Photos of Property Condition: Photographic evidence of property condition at release
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