This Early Tenancy Termination agreement template is designed for use in Saudi Arabia when either a landlord or tenant needs to terminate a lease agreement before its scheduled end date. The document incorporates essential requirements under Saudi Arabian law, including compliance with the Ejar platform regulations and Ministry of Housing guidelines. It is suitable for both residential and commercial properties, providing comprehensive coverage of termination terms, financial settlements, and property handover procedures. The agreement ensures proper documentation of the early termination process while protecting the rights of all parties involved, in accordance with both civil law and Sharia principles. It includes necessary provisions for security deposit handling, final utility payments, and property condition assessments, making it a crucial tool for property managers and legal professionals handling lease terminations in Saudi Arabia.
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1. Parties: Identification of the landlord and tenant, including their full legal names, national ID numbers, and contact details as required under Saudi law
2. Background: Brief context about the existing tenancy agreement, including its start date, original term, and reference to its registration on the Ejar platform
3. Definitions: Key terms used in the agreement, including 'Termination Date', 'Property', 'Original Lease Agreement', and 'Outstanding Obligations'
4. Early Termination Notice: Formal declaration of early termination, specifying the intended termination date and compliance with notice periods under Saudi law
5. Termination Terms: Specific conditions and requirements for the early termination, including any penalties or compensation as permitted under Saudi law
6. Financial Settlement: Details of final rent payment, security deposit return, and any agreed compensation or penalties
7. Handover Requirements: Specifications for the condition in which the property must be returned, including cleaning and repair obligations
8. Release of Obligations: Mutual release of future obligations under the original lease, subject to completion of termination conditions
9. Governing Law: Confirmation that the agreement is governed by Saudi Arabian law and Sharia principles
10. Execution: Signature requirements and date of agreement, including any witness requirements
1. Outstanding Repairs: Used when there are specific repair or maintenance issues that need to be addressed before termination
2. Utilities Settlement: Include when there are specific arrangements needed for the transfer or termination of utility services
3. Commercial Terms: Additional provisions specific to commercial property terminations, including handling of fixtures and business-related modifications
4. Property Marketing: Include when there are specific arrangements for allowing the landlord to market the property before vacancy
5. Third Party Rights: Required when there are sub-tenants or other third parties with rights related to the property
6. Dispute Resolution: Detailed dispute resolution procedures, recommended for high-value or complex tenancies
1. Schedule 1 - Property Details: Detailed description of the property, including address and any registered property identifiers
2. Schedule 2 - Original Lease Summary: Key details from the original lease agreement, including rent amount, term, and any special conditions
3. Schedule 3 - Financial Statement: Detailed breakdown of all financial settlements, including rent, deposits, and any penalties
4. Schedule 4 - Property Condition Report: Current condition of the property and any agreed repairs or maintenance requirements
5. Schedule 5 - Handover Checklist: Detailed list of items to be checked during the final property inspection and handover
6. Appendix A - Required Notices: Copies of formal notices required under Saudi law, including Ejar system notifications
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