The Agreement To Cancel Lease is a crucial document used in the Philippine real estate market when both landlord and tenant mutually agree to terminate their existing lease arrangement. This document becomes necessary when parties wish to formally end their lease obligations before the original termination date, or when documenting the agreed terms of lease conclusion. It must comply with the Civil Code of the Philippines, particularly Articles 1643-1753 governing lease agreements, and any applicable local property regulations. The agreement typically includes provisions for property surrender, financial settlements, and mutual releases, protecting both parties' interests during the lease termination process. It's particularly important in commercial and residential contexts where formal documentation of the lease termination is required for legal and business purposes.
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1. Parties: Identification of the Lessor and Lessee with complete names and addresses
2. Background: Reference to the original lease agreement, including its date, property details, and term
3. Definitions: Definitions of key terms used in the agreement, including 'Effective Date', 'Property', and 'Original Lease'
4. Mutual Agreement to Cancel: Clear statement of both parties' agreement to terminate the lease and the effective date of termination
5. Settlement of Obligations: Details of any outstanding rent, utilities, or other payments to be settled
6. Return of Security Deposit: Arrangements for the return of the security deposit, including any deductions
7. Property Handover: Terms for the inspection and surrender of the property
8. Release and Waiver: Mutual release from future claims related to the lease
9. Governing Law: Specification that the agreement is governed by Philippine law
10. Execution: Signature blocks for all parties and witnesses
1. Outstanding Repairs: Include when there are pending repairs or property damage issues to be resolved
2. Utilities Transfer: Include when utilities need to be transferred back to the landlord or terminated
3. Pro-rata Rent Calculation: Include when the termination date is mid-month and rent needs to be prorated
4. Third Party Notifications: Include when there are requirements to notify building management, homeowners association, or other relevant parties
5. Key Return: Include when there are specific arrangements for returning keys, access cards, or other security devices
6. Holdover Provisions: Include when there's a need to address potential delayed move-out scenarios
1. Schedule A - Property Inspection Report: Detailed report of the property's condition at the time of termination
2. Schedule B - Settlement Statement: Itemized list of all financial settlements, including security deposit deductions if any
3. Schedule C - Utility Readings: Final readings of all utility meters and outstanding bills
4. Appendix 1 - Original Lease Agreement: Copy of the original lease agreement being terminated
5. Appendix 2 - Photographic Evidence: Photos documenting the property's condition at handover
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Residential Property
Commercial Property
Industrial Property
Retail
Hospitality
Office Space Management
Manufacturing
Warehousing
Mixed-use Development
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Administration
Compliance
Property Management
Asset Management
Corporate Services
Risk Management
Relevant Roles
Property Manager
Real Estate Manager
Facilities Manager
Legal Counsel
Corporate Lawyer
Lease Administrator
Asset Manager
Operations Manager
Real Estate Agent
Building Superintendent
Property Administrator
Compliance Officer
Real Estate Director
Housing Administrator
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