Simply put, a Lease Surrender Agreement is an agreement whereby the landlord and tenant agree to terminate the lease prior to the expiration date. “Surrender” is a legal term referring to the tenant’s surrender, or relinquishment, of its leasehold estate.
Parties may wish to enter into a Lease Surrender Agreement to address a tenant default or settle a dispute over the rent, additional rent or another material provision in the lease.
In any event, the Lease Surrender Agreement can be a useful tool to avoid litigation and allow the parties to part ways amicably. Some of the basic components of the Lease Surrender agreement are the vacate date, schedule for the payment of rent and additional rent, the condition of the premises, whether the premises must be restored and to what extent, the security deposit, legal fees, and any other deal specific items.
If the lease was guaranteed by an individual, the Guaranty can also be addressed in the Lease Surrender Agreement. If the tenant is behind on their rent or additional rent, a Confession of Judgment may be appropriate.
Having an experienced real estate attorney to draft the Lease Surrender Agreement can expedite the transaction/settlement and reduce the risk of a future dispute.
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The Law Offices of Keith R. Betensky, Esq.
The Empire Building
26 Village Green, Suite 4
P.O. Box 22
Bedford, New York 10506-0022