Lease Termination Agreement Template

A lease termination agreement is a formal way to end a commercial lease before its scheduled expiration date. It defines the terms under which the landlord and tenant agree to terminate the lease, including settlement payments and releases of liability.

With fynk’s customizable lease termination agreement template, landlords and tenants can quickly document early lease exits while reducing disputes and ensuring legal clarity.

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Lease Termination Agreement

This Lease Termination Agreement (“Agreement”) is made and entered into as of , by and between , a (“Landlord”), and , a (“Tenant”).

WITNESSETH:

WHEREAS, the Lease has an expiration date of ; and

WHEREAS, Tenant vacated and surrendered the Premises to Landlord effective ; and

WHEREAS, Landlord has provided notice to Tenant that the failure to make certain payments as and when due under the Lease, among other acts or omissions, constitutes Tenant’s default under the Lease, which default has not been cured; and

WHEREAS, Landlord and Tenant have agreed to an earlier termination of the Lease and to fully and finally resolve all claims between the parties arising out of the Lease according to the terms and conditions of this Agreement.

NOW THEREFORE, in consideration of the mutual covenants herein contained, Landlord and Tenant agree as follows:

Termination Date.

The Lease shall be cancelled and terminated and thereafter be deemed null, void, and of no force and effect whatsoever immediately upon receipt of the Termination Payment described below in Section 2. Tenant shall make best efforts to remit this payment on or before .

Termination Payment.

In complete and full consideration of all claims that the Landlord has or may have against the Tenant pursuant to the Lease, Tenant shall pay to Landlord the sum of in immediately available funds (the “Termination Payment”)

subsequent to the full execution of this Agreement by all parties and

prior to the Termination Date. Upon Landlord’s receipt of the Termination Payment, Tenant shall have no obligation to make any further payments to Landlord or any other third party arising out of the Lease, including without limitation, any payment of rent (including any rent previously deferred or abated), real estate taxes, landscaping, utilities, insurance, repairs, maintenance, painting, or other charges arising out of the Lease, whether such charges were due or accrued prior to, on, or subsequent to the Termination Date.

Release.

Landlord and Tenant hereby release and forever discharge each other from any and all debts, demands, actions, claims, suits, and liabilities whatsoever of every name and nature, whether in law or in equity, now or hereafter existing, arising out of or in connection with the Lease.

Landlord's Representations.

Landlord represents that it is the current owner of the Premises and the current Landlord under the Lease, that it is fully authorized to execute this Agreement and that the consent of no other party is required.

Complete Agreement.

This Agreement contains the complete agreement of the parties hereto with respect to the termination of the Lease and supersedes any and all prior agreements, understandings or representations, whether written or verbal.

Severability.

The unenforceability or invalidity of any one or more provisions hereof shall not affect the validity or enforceability of any of the other provisions hereof.

Binding Agreement.

This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns.

Governing Law and Venue.

This Agreement shall be governed by and construed under and in accordance with the laws of .

Counterparts.

This Agreement may be executed in one or more counterparts and shall become effective only when one or more counterparts have been executed by each of the parties hereto. Each counterpart shall be deemed an original, but all of the counterparts shall constitute one Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement under seal effective as of the day and date first above written.

LANDLORD:

Pending

TENANT:

Pending

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Disclaimer: The original creator, the author of this template, and fynk GmbH are not responsible for any damages or liabilities that may result from using this template. This template should not be considered a substitute for legal advice, and consulting with a legal professional is recommended before use. fynk GmbH, the original creator, and the author do not provide legal advice and will not be held accountable for any legal consequences arising from its use.

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Background Information

Lease Termination Easily Explained.

Learn everything that is about lease termination.

What is a lease termination agreement?

Commercial leases that require termination prior to the scheduled expiration date use lease termination agreements to:

Record mutual consent to terminate the lease
Set move-out terms
Outline payment terms
List inspection responsibilities
Release both parties of liability

For example, if Company A is leasing a building from Company B through 2030, they can terminate the contract early by paying 50% (or the agreed-upon amount) of the remaining lease.

Due to the clauses in the agreement, Company B will inspect the building and bring any issues up with Company A before the lease is terminated.

Once signed and agreed upon, both parties release their claims of liability.

Who needs a lease termination agreement?

Two parties enter into one of these lease termination agreements:

Landlords who own or manage the property.
Tenants who occupy the space.

While leases are common for residential tenants, this type of termination agreement is often used by commercial landlords to protect their best interests. If a landlord is negotiating a lease buyout or tenants are trying to end a lease early, an agreement makes sense.

Real estate attorneys and business leaders who are trying to formalize a lease surrender can use these legal agreements to reach their goals.

What clauses should a lease termination agreement include?

Landlords and tenants can customize their lease termination agreements by adding relevant clauses. Some of the most common clauses in these types of agreements are:

Termination date

A termination date is the date by which the lease will be cancelled. Within this clause, it’s common to have a stipulation that the termination only occurs after the termination payment is made.

Termination payment

The payment from the tenant to the landlord for the right to terminate the lease. Terms within the termination payment clauses will also include releasing the tenant from certain obligations, such as paying real estate taxes or utilities in the building for the lease period.

Release

The release is a formal discharge of all debts, liabilities, demands, actions, claims, suits, or otherwise of both parties.

Landlord’s representation

A statement of fact that the party guarantees to be true at the time of signing. For example, if the landlord signs the agreement but it turns out their bank needed to consent and didn’t, the landlord’s promise is then breached, and the tenant is protected from the fallout.

Complete agreement

The complete agreement clause establishes that the contract is the final, full, and exclusive expression of the parties’ agreement. If an agreement was made prior to this contract, such as in emails or conversations, it is legally inadmissible and irrelevant in the eyes of the law.

Severability

If the courts find that one part of the contract is illegal or unenforceable, the severability clause protects the rest of the agreement by ensuring it remains valid.

👉 Lear more about this clause in our severability clause guide

Binding agreement

Ensures that both parties are aware that the agreement is binding, and the legal obligations extend to successors and assigns.

Counterparts

The counterparts clause allows all parties involved in the agreement to sign different, identical copies of the contract instead of requiring everyone to sign the same physical piece of paper.

Free lease termination agreement template

A lease termination agreement clarifies the terms under which a commercial lease is ended before its original expiration date.

Because there’s a lot at stake for both parties, this type of agreement needs to be clear and legally sound.

"It easily saves me a couple of hours per month when managing multiple collaborations."

Alina Heiner –
Founder and Director at maven

A template gives you a solid legal framework to build off of. Our lease termination agreement template includes stand-out features like:

Comprehensive settlement: Resolve all past and future charges with a single lump-sum payment from the tenant.
Precise termination trigger: Once payment is received, the lease automatically ends – eliminating confusion for tenants and landlords.
Broad mutual release: Protect yourself by ensuring all claims related to the lease end with this termination agreement.
Flexibility: Use in a variety of real estate environments, including default scenarios.

At fynk, you can customize this template to meet your needs using our collaborative options. You also get access to other features that simplify contract management, like:

Templates, which allow tenants and landlords to reuse this standard lease termination structure. Embed dynamic fields for dates, amounts, and premises info to save time.

Metadata that captures critical information such as payment amount, termination date, property details, responsible parties, and more. This feature is ideal for tracking multiple lease exits.

Dynamic fields that auto-fill crucial information, like property address, dates, payment amount, and party names, across the entire document to reduce the risk of errors and save time.
Document sharing and external collaboration, which ensure that both the tenant and landlord can securely review, comment, and finalize the agreement from one centralized, organized platform.

Create a compliance-focused lease termination agreement that avoids future disputes and is audit-ready.

Get started with fynk to customize this template today.

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FAQ

When does a lease termination become effective?: A lease termination typically becomes effective once the termination payment is received and all parties have executed the agreement.
What is a termination payment in a lease termination agreement?: A termination payment is a negotiated lump-sum amount paid by the tenant to the landlord in exchange for ending the lease early and releasing future obligations.
Does a lease termination agreement release both parties from liability?: Yes. Most lease termination agreements include a mutual release that discharges both landlord and tenant from claims arising out of the lease.
Can a lease termination agreement be signed in counterparts?: Yes. Counterparts clauses allow each party to sign separate but identical copies of the agreement, which together form a single binding contract.

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