The Lease Cancellation Form is a crucial legal document used in Pakistan when parties mutually agree to terminate an existing lease agreement before its natural expiration, or when termination is initiated by one party in accordance with the lease terms. This document, governed by the Transfer of Property Act 1882 and various provincial rent control laws, serves to formally document the termination process, protect both parties' interests, and ensure proper closure of all lease-related obligations. The form typically includes details about the original lease, termination date, property handover procedures, settlement of financial obligations, and mutual release clauses. It's essential for both residential and commercial properties and may require proper registration and stamp duty payment depending on the jurisdiction and original lease terms.
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1. Identification of Parties: Full legal names and addresses of both landlord and tenant
2. Original Lease Reference: Details of the original lease agreement including date, property address, and registration details if applicable
3. Termination Declaration: Clear statement of lease termination including effective date and mutual agreement of parties
4. Property Vacation: Confirmation of date by which tenant will vacate and return possession of property
5. Settlement of Dues: Statement regarding payment of any outstanding rent, utilities, or other charges
6. Mutual Release: Statement releasing both parties from future obligations under the lease
7. Governing Law: Confirmation that the cancellation is governed by Pakistani law
8. Signatures: Space for dated signatures of all parties and witnesses
1. Security Deposit Settlement: Terms for return of security deposit, to be included if security deposit was part of original lease
2. Property Condition: Statement about the condition of property and any damage assessment, needed if there are disputes or concerns about property condition
3. Maintenance Resolution: Resolution of any pending maintenance or repair issues, include if there are outstanding maintenance matters
4. Key Return: Specific provisions about return of keys and access devices, include for formal properties or commercial leases
5. Utility Transfer: Instructions for transfer or disconnection of utilities, include if utilities are in tenant's name
6. Personal Property: Provisions regarding removal of tenant's personal property, include if there are concerns about abandoned property
1. Schedule A - Payment Reconciliation: Detailed breakdown of any final payments, refunds, or adjustments
2. Schedule B - Property Inventory: List of property fixtures and fittings and their condition, if relevant
3. Schedule C - Utility Readings: Final readings for various utilities and payment status
4. Appendix 1 - Photographic Evidence: Photos of property condition at time of cancellation, if needed
5. Appendix 2 - Handover Checklist: Checklist for property handover process and requirements
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