Lease Cancellation Agreement Form

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A lease cancellation agreement form is a document used by the tenant or the landlord to inform the recipient that the lease agreement is being canceled. This form is most often used to end a lease before the end of its actual term. It's important that this document is completed in full. It should include details about both parties, the terms of the lease being canceled, the cancellation date, and any early cancellation penalties. Both parties should sign the notice and keep a copy of it. 

What Is a Lease Cancellation Agreement?

A lease cancellation agreement is used to end a current lease before its contracted end date. The tenant or the landlord can initiate lease cancellation with this document. This document will allow either party to present their case for early cancellation while protecting the legal rights from the original lease contract.

This document will need to include information about the tenant, the landlord, and the property. The contact information for both the landlord and tenant should be listed, as well as the address of the rental property. The current terms of the lease should be outlined, as well as the new termination date. Any early cancellation penalties should be included in this agreement and both parties should consent to this penalty before signing.

Review Your Lease Agreement

If you're considering breaking your lease, you should review your original rental agreement. Read each section carefully and look for information about how to break your lease and if any penalties apply. Look for words such as "early termination," "termination of lease", "cancellation of lease," "mutual termination," and "sublet."  

Your original lease agreement may specify that you have to give notice of vacating the property at least one month in advance or that you have to find a replacement renter. There may also be an option to terminate the lease immediately, but this option likely comes with a loss of your security deposit and/or payment of an additional months' rent payment as a penalty.

Find a Replacement Renter

Some states require a tenant and landlord to attempt to find a new renter if a renter needs to move out early. This can be accomplished through subletting or re-renting.

In a sublease, the renter finds someone who is willing to take over the current lease. This means that the lease is still in the original renter's name, the original renter is responsible for all damages, and the original renter will not get his or her security deposit back until the end of the original lease term. If you decide to sublease, you should sign a sublease agreement with your sublessee.

If an apartment is re-rented, the new tenant signs a new lease agreement and pays their own security deposit. The original tenant may be responsible for paying the monthly rent between the time they move out and the time a subletter or re-renter is found.

Document Everything

The best way to have a record of any discussion or mutual agreement is to communicate over email. If you do have any conversations over the phone or in person, take notes. After your conversation, send the other party your notes about the conversation and get their written confirmation that your notes are correct. Write a simple note that says, "I want to make sure that I understood what we agreed to. Can you confirm that these details are correct?

Know Your Rights

Each state has its own landlord-tenant laws and laws governing lease cancellation agreements. Some states allow tenants to leave a rental property before the end of a lease term in special circumstances.  The most common reasons for legally breaking a lease agreement without penalty are:

  • Landlord fails to properly maintain property

  • Tenant has active military duty

  • Apartment is considered illegal

  • Tenant is a victim of domestic violence

  • Landlord illegally enters property

Laws vary from state to state, so it's important to review state law and seek legal advice if you think that any of these circumstances apply to your lease.

Lease Cancellation Template

Create your own lease cancellation agreement in minutes with our simple lease cancellation agreement template.

Sample Lease Cancellation Agreement


Sample Lease Cancellation Agreement

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