What is a lease termination agreement?
Sometimes a tenant needs to leave before the lease ends — a new job, a move, a business closing — or the landlord wants the property back early to sell or renovate. Rather than a broken lease and a dispute, the two sides can agree to end it. A lease termination agreement (sometimes called a surrender) fixes the date, settles the money and releases both sides, so neither can come back later for rent after the tenant has gone.
This template identifies the lease and, for a fixed term, when it would otherwise end. It sets the termination date by which the tenant gives vacant possession, keeps the lease running until then, and replaces any notices already given. It covers any rent still due, an optional early termination payment by the tenant or payment by the landlord to the tenant, bills and meter readings, the move-out checklist, an optional joint inspection date, and the deposit return within the number of days you set, with itemised deductions. A mutual release then ends claims under the lease, except for this agreement, unpaid rent and bills, and damage that couldn't have been found at move-out, and it spells out what happens if the tenant doesn't leave on time.
- Best for
- Ending a residential or commercial lease early by agreement
- Signed by
- The landlord and the tenant
- Money
- Final rent, optional payment either way, and the deposit return
- Length
- About 2 pages
When to Use a lease termination agreement
- A tenant relocating for work before the lease ends
- A landlord who wants the property back early to sell or renovate
- A business closing or downsizing its premises
- Ending a tenancy after a new tenant has been found to replace the old one
- Settling a lease on good terms after a dispute
What You Fill In
17 blanks, then the name and email of each person who signs: landlord, tenant.
1 The parties
- Date of the agreement*
- Landlord*
- Tenant(s)*
2 The lease
- Address of the property*
- Date of the lease*
- Lease would otherwise end
3 Ending
- Lease ends on (move-out date)*
- Reason
4 Money
- Currency*
- Rent still due up to the move-out date
- Early termination payment by the Tenant
- Payment by the Landlord to the Tenant
- When payments are made
5 Deposit
- Deposit held
- Deposit returned within (days of move-out)
- Move-out inspection date
6 Other terms
- Governing law*
7 Who signs
- Landlord signature and date, job title · The landlord, or the agent signing for them.
- Tenant signature and date, job title · The tenant. To have more tenants sign, add them as signers in the editor.
What the lease termination agreement Covers
- Ending the Lease
- Money
- Moving out
- Deposit
- Mutual release
- General
Using the lease termination agreement, step by step
1 Identify the lease
Enter the landlord, tenant, property and the date of the lease. For a fixed-term lease, add the date it would otherwise end; leave it empty for a month-to-month tenancy. You can add a short reason.
2 Set the date and the money
Choose the move-out date. Enter any rent still due, and an early termination payment by the tenant or a payment by the landlord if either applies, and when payments are made. Some places limit what a landlord can charge for early termination.
3 Deposit and inspection
Enter the deposit held, the number of days after move-out for returning it (no longer than any legal limit), and an optional joint inspection date.
4 Send for signature
Add the governing law and send it to the tenant. If there is more than one tenant, all of them must sign — add each as a signer in the editor.
Tips Before You Send It
- Put the agreement in writing before the tenant hands in the keys — not after.
- Photograph the property at the joint inspection and compare it with the move-in record.
- Agree the final meter readings on the day and note them in an email to each other.
- If the tenant is leaving because a replacement tenant is taking over, a lease assignment may suit better.
Sign It Online In Minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. VergeHR builds the PDF with every signature, date box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in Files and emailed to everyone.
Lease termination agreement: frequently asked questions
What does the mutual release cover?
Once the tenant has moved out and the agreed payments are made, each side releases the other from claims under the lease, including rent after the termination date. It doesn't cover obligations in this agreement, unpaid rent and bills up to the termination date, or damage that couldn't reasonably have been found at the move-out inspection.
What if the tenant doesn't move out on the date?
The release doesn't apply. The landlord can recover possession only through the legal process, and the tenant pays the daily equivalent of the rent for each day it stays, plus anything else the law allows.
When must the deposit be returned?
Within the number of days you set, or any shorter period the law requires, less only deductions the lease and law allow, with a written list and evidence of their cost.
Is an electronically signed termination agreement valid?
Electronic signatures are generally valid for ordinary agreements like this in the US (ESIGN Act and UETA), the UK, the EU (eIDAS) and Canada. Surrenders of some longer leases may need a particular form or registration, so check the local rules. VergeHR keeps an audit trail and a Certificate of Completion with the signed PDF.