Document background
The Mutual Lease Termination Agreement is a crucial document used in Malaysia when both landlord and tenant agree to end their lease arrangement before the originally planned termination date. This document is essential for protecting both parties' interests and ensuring a clear, legally compliant closure of the tenancy relationship. It becomes particularly relevant in situations such as business relocations, property sales, or mutual agreement to end the lease due to changed circumstances. The agreement must comply with Malaysian property law, including the National Land Code 1965 and Contracts Act 1950, and typically includes provisions for security deposit returns, outstanding payments, utility settlements, and property handover procedures. A properly executed termination agreement helps prevent future disputes and provides clear documentation of the parties' agreement to end their lease obligations.
