The Termination of Rental agreement is a crucial document used in the Philippines when either a landlord or tenant wishes to formally end a lease arrangement. It is designed to comply with Philippine property law, including the Civil Code of the Philippines and the Rent Control Act of 2009, ensuring all legal requirements are met during the termination process. This document is essential for protecting both parties' interests by clearly outlining the termination date, final payment arrangements, property inspection procedures, and the process for returning security deposits. It should be used whenever a rental agreement is being terminated, whether at the end of its natural term or through early termination, and is applicable to both residential and commercial properties. The agreement helps prevent future disputes by documenting all aspects of the termination process and ensuring all parties understand their rights and obligations under Philippine law.
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1. Parties: Identification of the Landlord and Tenant, including complete names, addresses, and contact information
2. Background: Reference to the original lease agreement, its date, and brief context of the rental arrangement
3. Definitions: Key terms used in the termination agreement, including 'Premises', 'Termination Date', 'Original Lease', etc.
4. Termination Date: Clear specification of the exact date when the lease will terminate
5. Notice of Termination: Confirmation that proper notice has been given in accordance with Philippine law and the original lease terms
6. Final Rental Payment: Details of the final rent payment, including pro-rated amounts if applicable
7. Security Deposit: Arrangements for the return or application of the security deposit, subject to property inspection
8. Property Inspection: Terms for conducting the final inspection and assessment of the property condition
9. Handover Procedures: Process for returning keys, access cards, and vacating the premises
10. Settlement of Utilities: Process for final utility readings and payment of outstanding bills
11. Mutual Release: Release of both parties from future obligations under the lease, subject to specified conditions
12. Governing Law: Confirmation that the agreement is governed by Philippine law
13. Signatures: Execution block for all parties to sign and date the agreement
1. Early Termination Fee: Include when the termination occurs before the original lease end date and fees apply
2. Repairs and Restoration: Include when specific repairs or restoration work is required before vacating
3. Forwarding Address: Include when tenant needs to provide a forwarding address for future correspondence or deposit return
4. Outstanding Violations: Include when there are existing violations or disputes that need to be resolved
5. Abandoned Property: Include when addressing the handling of any property left behind by the tenant
6. Insurance: Include when specific insurance requirements continue until final vacancy
7. Holdover Provisions: Include when addressing potential penalties for failing to vacate by the termination date
1. Schedule A - Property Inventory: Detailed list of property fixtures and fittings to be checked during final inspection
2. Schedule B - Utility Accounts: List of all utility accounts and current readings/status
3. Schedule C - Damage Assessment: Documentation of any existing damage or wear and tear
4. Schedule D - Outstanding Payments: Detailed breakdown of any outstanding rent, utilities, or other charges
5. Appendix 1 - Original Lease Agreement: Copy of the original lease agreement for reference
6. Appendix 2 - Photographic Evidence: Photos documenting the property condition at termination
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