The Termination of Tenancy Agreement is a crucial document used in the Philippine real estate market when either the landlord or tenant wishes to formally end their lease arrangement. It is designed to comply with Philippine property law, including the Civil Code of the Philippines and the Rent Control Act, which provide specific requirements for lease terminations. This document is essential when parties mutually agree to end their lease before its natural expiration, or when the lease is ending according to its original terms. It includes critical information such as the termination date, final utility payments, security deposit return procedures, property inspection requirements, and mutual release of obligations. The agreement protects both parties' interests by clearly documenting the termination terms and ensuring all financial and practical aspects of the lease ending are properly addressed.
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1. Parties: Identification of the Landlord and Tenant with their complete legal names and addresses
2. Background: Reference to the original lease agreement, including its date, property details, and current status
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Property', 'Original Lease Agreement', and 'Security Deposit'
4. Termination Agreement: Mutual agreement to terminate the lease, specifying the exact termination date
5. Final Settlement: Details of all financial settlements including rent, utilities, security deposit return, and any outstanding payments
6. Property Inspection: Arrangements for final inspection and the condition the property must be returned in
7. Handover Requirements: Specific requirements for returning keys, removing personal belongings, and cleaning obligations
8. Release of Obligations: Mutual release of future obligations under the original lease agreement
9. Governing Law: Confirmation that the agreement is governed by Philippine law
10. Execution: Signature blocks and execution details for all parties
1. Dispute Resolution: Include when parties wish to specify a particular method for resolving any disputes arising from the termination
2. Surviving Obligations: Include when certain obligations from the original lease should survive termination
3. Confidentiality: Include when parties wish to keep the terms of the termination confidential
4. Early Termination Fee: Include when the termination occurs before the original lease end date and involves a penalty
5. Forwarding Address: Include when specific arrangements are needed for future correspondence or deposit return
1. Schedule 1 - Property Inventory: Detailed list of property condition and any fixtures/fittings to be checked during final inspection
2. Schedule 2 - Settlement Calculation: Detailed breakdown of all financial settlements including rent, utilities, deposits, and any deductions
3. Schedule 3 - Handover Checklist: Specific checklist of items to be completed before property handover
4. Appendix A - Original Lease Agreement: Copy of the original lease agreement for reference
5. Appendix B - Property Photographs: Recent photographs documenting the property's condition prior to termination
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