The Termination of Tenancy Agreement is a crucial legal document used in Saudi Arabia when parties wish to formally end their landlord-tenant relationship before or at the natural conclusion of a lease term. This document is essential for compliance with Saudi Tenancy Law (Ejar) and must be registered through the official Ejar platform. It provides legal protection for both parties by clearly documenting the agreed termination terms, final settlements, and property handover conditions. The agreement should be used whenever a tenancy needs to be concluded, whether by mutual consent or as per the original lease terms, and is particularly important for ensuring compliance with local regulations and protecting both parties' rights during the termination process.
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1. Parties: Identification of the Landlord and Tenant with full legal names, ID numbers, and contact details as per Saudi requirements
2. Background: Reference to the original tenancy agreement including its date, property details, and Ejar registration number
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Property', 'Original Lease', and 'Final Settlement'
4. Termination Agreement: Mutual agreement to terminate the lease, specifying the exact termination date
5. Handover Process: Details of the property inspection and handover procedure, including key return
6. Financial Settlement: Agreement on final rent payment, return of security deposit, and settlement of any outstanding utilities
7. Release of Obligations: Mutual release from future obligations under the original lease
8. Governing Law: Confirmation that the agreement is governed by Saudi Law and Sharia principles
9. Execution: Signature requirements and execution details compliant with Saudi law
1. Early Termination Compensation: Required when termination occurs before the lease end date, detailing any agreed compensation
2. Property Damage Settlement: Used when there are disputes or agreements regarding property damage or repairs
3. Utilities Transfer: Required when specific arrangements are needed for transferring or closing utility accounts
4. Outstanding Maintenance: Included when there are pending maintenance issues to be resolved
5. Third Party Rights: Needed when other parties (like guarantors) are involved in the original lease
6. Dispute Resolution: Optional detailed dispute resolution process, particularly for high-value properties
1. Schedule 1 - Property Inspection Report: Detailed report of the property's condition at termination, including photographs
2. Schedule 2 - Financial Settlement Statement: Breakdown of all financial settlements including rent, deposits, and deductions
3. Schedule 3 - Utility Readings: Final readings for all utilities and status of accounts
4. Schedule 4 - Handover Checklist: List of items to be returned (keys, access cards, etc.) and their status
5. Appendix A - Original Lease Reference: Copy or key details of the original lease agreement
6. Appendix B - Property Photographs: Dated photographs of the property's condition at termination
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