Lease Agreement Cancellation Format || Download free agreement sample in 2021

What Is a Lease Cancellation Agreement and How Does It Work?

A lease cancellation agreement is used to terminate a current lease before the end date specified in the contract. This paperwork can be used by either the tenant or the landlord to cancel the lease. This document will allow any party to submit their case for an early termination of the lease while still safeguarding their legal rights under the original lease agreement. This article is about Lease Agreement Cancellation Format .

The renter, the landlord, and the property must all be mentioned in this document. The landlord’s and tenant’s contact information, as well as the rental property’s address, should be included. The present lease terms, as well as the new lease termination date, should be mentioned. Any penalties for early cancellation should be included in this agreement, and both parties should agree to them before signing.

Lease Agreement Cancellation Format
Lease Agreement Cancellation Format

A lease cancellation agreement form is a document that the tenant or landlord uses to notify the recipient that the lease agreement is being terminated. This form is most commonly used to terminate a lease before it expires. It’s critical that you finish this document completely. It should include information about both parties, the terms of the cancelled lease, the cancellation date, and any penalties for cancelling early. Both parties should sign and preserve a copy of the notice.

What circumstances allow a tenant to break a lease?

Lease Agreement Cancellation Format
Lease Agreement Cancellation Format

A renter is usually required to follow the conditions of a lease until it expires. However, there are certain exceptions, such as:

1. Legally permissible under federal or state law 

While state laws differ, federal law allows a tenant to terminate a tenancy early if he or she enlists in active military service. In some areas, a renter can legally break a lease if they are moving to an aged care home or because their current employer is relocating.

In many places, a landlord’s breach of health and safety laws that results in unacceptable living conditions for a tenant is referred to as a “constructive eviction.”

2. Significant damage to the rental unit prevents occupancy 

When a natural disaster or another situation for which the tenant bears no responsibility destroys or significantly damages the rental property, the renter may move out before the contract expires.

The landlord can sue a tenant for damages if he or she violates a lease without a legally permitted reason. The landlord, on the other hand, must try to re-rent the unit to offset the damages. If the landlord suffers losses in excess of the security deposit, the landlord may sue the tenant for the period the unit was vacant, the cost of finding a new renter, and attorney fees, if the lease agreement allows for it.

What rules govern the repayment of security deposits?

Landlords are allowed to remove money from a tenant’s security deposit if they do it properly and for a valid reason. Many states require landlords to produce a written itemised accounting of deductions for unpaid rent, damages, and necessary cleaning that exceeds normal wear and tear, as well as payment of any deposit balance.

The deadlines vary by jurisdiction, but most landlords have a certain period of time to restore deposits, usually 14 to 30 days after the tenant vacates the property — either voluntarily or through eviction.

Why Is It Necessary To Terminate A Rental Agreement?

If the landlord-tenant relationship is ending, some Rental Agreements require notice to be issued. If you need to end your lease early, utilise a Lease Termination Letter to officially indicate your desire to do so. A yearlong rental agreement, for example, may automatically renew unless one or two months’ notice is given. The Landlord has more time to find a new tenant, and the Tenant has more time to find a new place to live.

Before ending a periodic or month-to-month rental, certain jurisdictions require a minimum number of days’ notice to the Tenant. Prepare an eviction notice for periodic tenancies that meets the statutory minimum notice requirements.



This agreement is entered into on [date] between [tenant name(s)] (Tenants) who lease the premises at [full address of your rental] (Premises), and [landlord’s name] (Landlord).

1. Under the attached lease dated [effective date of most recent lease], Tenants agreed to pay Landlord monthly rent of $______ [use the monthly rent amount agreed upon in the attached lease]. Tenants have paid rent through the month of [month and year that you’ve already paid rent for].

2. The attached lease expires on [date that full lease term ends], but Tenants need to break the lease and move out of the Premises on [last date you plan to be in rental].

3. Landlord agrees to cancel the attached lease on [either the last date you plan to be in rental or whatever date you and Landlord agree to end your responsibility under the lease], releasing Tenants from further responsibility under the lease, including (but not limited to) their obligation to pay rent, in exchange for Tenants’ payment of [use the exact amount you and landlord have agreed on] by [date by which you will pay the amount].

4. Tenants also agree to allow Landlord to [insert any other promises you’ve made. For example: “show the Premises to prospective tenants after giving Tenants two hours’ notice, seven days a week. If Tenants cannot be reached after Landlord has made a good-faith effort to do so, Landlord may enter and show the apartment”].

5. If Tenants do not fulfill their promises as described in paragraphs 3 and 4 above, the attached lease, dated [effective date of attached lease], will remain in effect.

6. This agreement is the complete agreement regarding cancelling the attached lease. Any other promises made by Tenants or Landlord, oral or written, are replaced by this agreement.

Landlord’s signature:______________________________ Date:______________________

Tenant(s)’ signature:______________________________ Date:_______________________

When a landlord is going through the eviction process with a tenant, a notice or agreement demonstrates to the court that the landlord gave the tenant a fair warning. Hopefully, the Landlord has kept track of all written notifications and letters sent to the Tenant. If a judge is involved, a good paper trail can save the Landlord time in the future.

Lease Agreement Cancellation Format
Lease Agreement Cancellation Format

You, as the Tenant, may have a compelling reason to terminate your lease early. If you’ve tried and failed to get your Landlord to fix the heater during the winter, you might choose to send a final letter. A Tenant’s Notice of Lease Termination to the Landlord can explain why you believe the Landlord has breached the Implied Warranty of Habitability and why you need to terminate the lease and find a warm home for you and your family.

A Lease Termination Letter can be used to end a lease early or certify that a lease term that is about to expire will not be extended.

Increment Rent RateNon-payment of Rent
Unfair Additional ChargesSublet
House ConditionUnlawful Activities
Personal ChoiceNuisance
Safety IssueDamage in Structure

How To Terminate A Rental Agreement?

There are two ways to terminate a lease and relieve both parties of their responsibilities.

  1. The NRI Landlord or Tenant may unilaterally issue a Notice of Lease Termination to the other party if just one side desires to stop the agreement.
Lease Agreement Cancellation Format
Lease Agreement Cancellation Format

The NRI Landlord and Tenant may execute a mutually agreed-upon Lease Termination Agreement if both parties agree.

Lease Agreement Cancellation Format
Lease Agreement Cancellation Format

What happens if a Cancellation Lease deed isn’t used?

The court may not sympathise with your predicament if you do not employ a Lease Termination Letter. Tenants who move out without giving notice or landlords who evict their tenants without giving advance notice are breaking the law. When consumers know that their one-year rental agreement will be honoured, society benefits.

Tenants are required to have mature conversations with their landlords about why they need to leave rather than simply leaving. Tenants can offer to sublet the unit to another trustworthy person or wait for the Landlord to fix the heater (if it hasn’t already been done).

Money LossSecurity Deposit RefundConstructive Eviction in which Court finds the Landlord guilty for ill maintenance of the property.Attorney CostSecurity Deposit LossFull rent payment (current and remaining in the past)Attorney Cost
Time LossPresence in Court ProceedingsFinding AttorneyDifficulty in finding another place which can be time consuming
Mental AgonyTenant might sueLandlord might sue for non payment of rentCredit Judgment issued by a Judge for Bad Credit

How can NRI draft a Lease Cancellation Letter?

The following basic elements will be identified in a simple Lease Cancellation Deed: 

  1. Landlord: name of the owner of the premises who rents the property 
  2. Tenant: name of the renter who pays the Landlord
  3. Original Rent Agreement: Name, Beginning and End dates of the agreement
  4. Vacate Date: the date on which the Tenant will vacate the premises and leave the property.
  5. Reason for Termination
  6. Penalties and Fees: The penalties and fees you’re aware of, as well as how you plan to pay them.
  7. Forwarding Address: the address to which future notices or security deposits should be sent

Other difficulties: depending on your scenario, may need to be addressed. For example, if you have a power or cable service in your name, specify when these services will be stopped. Before returning your security deposit, your landlord may need to check the property (if they want to at all).

How to Cancel a Lease Early?

Unforeseen circumstances can occur during the rental period, requiring you to end the lease early, often known as breaking a lease. Sending your landlord an early lease termination letter is a kind and practical approach to start the conversation. 

While your landlord is technically not compelled to let you break the lease and can continue to collect rent from you, it is in their best interests to do so. After all, no one wants to go through a lengthy, nasty, and expensive eviction process. 

Step 1: Send your landlord an early lease termination letter 

An early lease termination letter allows you to explain why you need to stop your lease early. For example, you may need to break your lease due to a job loss, a divorce, or the necessity to care for a sick family member. It’s more probable that if you provide the landlord this information, they’ll understand why you need to terminate the contract.

It is preferable if you provide this paper as soon as possible. Allow plenty of time for your landlord to find a replacement tenant so that no one is pressured and no one loses money. To ensure that the letter is received promptly, send it certified mail or hand-deliver it to your landlord.

If you go over your lease again, you can find information on how to get out of your contract early. For example, you may be obligated to provide your landlord a specified number of days’ notice before breaking the rental agreement. To make your request easier to accept, follow the following.

Step 2: Agree on the terms of breaking your lease early

Hopefully, your landlord will be reasonable and enable you to do so. However, it’s critical to consider the financial implications of breaking your lease early. There will be several points to discuss, such as: 

  • Leasing Termination Date: When the lease agreement will come to an end.
  • Security Deposit: The amount of your security deposit and whether or not the landlord would return it to you or retain it for themselves.
  • Buyout: If you can pay a large sum of money to terminate the lease early, this is referred to as a buyout. While this is normally the security deposit, it’s conceivable that your landlord will request more funds.

Step 3: Inquire about subletting the property 

If your landlord is adamant about not terminating the lease early, inquire about subletting the property. You may move out and continue to receive rent from a subtenant, which you could then pay to your landlord by subletting the property.

Subletting saves the landlord the trouble of having to find a new renter, making the request more agreeable. If your present lease agreement prohibits subletting, you can simply request a lease amendment from your landlord. You, as the present tenant, would then rent out the property to a subtenant using a sublease agreement.

Step 4: Seek legal advice 

There are several legal loopholes that allow renters to cancel lease agreements early, such as if they are victims of domestic abuse. However, the chances of this technique succeeding are slim.

Step 5: Save all paperwork 

Make a copy of your early lease termination letter and note the date it was received by your landlord. Keep it as proof that you gave sufficient notice if you needed to quit the property early.

Also read – Defamation complaint format in 2021


1. Is it possible to cancel a lease once it has been signed?

When you sign a lease, you are entering into a legally binding agreement. The lease will remain in effect unless the landlord signs a paperwork consenting to terminate it. Most leases expressly stipulate that the lease cannot be amended verbally and that any changes must be made in writing to be legitimate.

2.What is the procedure for cancelling a registered rent agreement?

The landlord cannot unilaterally terminate the registered agreement. The renter and the landlord must sign a cancellation deed for the agreement that is still in effect. The registration of any cancellation deed that cancels a registered deed cannot be done unilaterally by one party; the cancellation deed must be executed jointly by all parties.

3.Why Should You Send an Early Lease Termination Letter? 

You probably didn’t sign your lease with the purpose of breaking it early, but if you do, it’s critical to provide adequate notice that you’re leaving. It starts the lease termination process professionally and successfully when you send your landlord a short, official, and complete early lease termination letter.

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