How to Cancel a Signed Lease Agreement
Leases are agreements between individuals or businesses that allow for the use of equipment or facilities for a specified amount of time in exchange for payment. Leases can be fairly simply or extremely complex, detailing each aspect of an agreement, including the agreed upon terms. Most, however, also include an agreed upon procedure for cancellation of the lease, by either party, in the event that the goods or facilities are no longer required.
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Things You'll Need
- Copy of the Lease
- Payment for lease cancellation
- Written notification for lease cancellation
Instructions
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Locate the paragraph in the lease that deals with cancellation. Leases are not easy documents to read. When hoping to cancel a lease, you should look for words like "early termination" or "cancellation."
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Read the termination clause carefully. This is the information you will need in order to cancel the lease. Usually, lease cancellations will require the return of the leased equipment or facilities, written notification at least 30 days in advance and the payment of a sum of money, usually equal to several months of lease payments.
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Write your cancellation notification. In this notification, you will need to state clearly that you wish to cancel your lease and list an effective date. You should probably state why you need to cancel the lease and when you intend to return the leased property. You will also need to acknowledge that payment is due and forthcoming.
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Return the property. When you do this, you need to get a receipt. The receipt serves as proof that the property was returned in the event of a lawsuit later. Along with the return of the property, you need to make the final lease payment. Make the payment via cashier's check and request a receipt for the payment as well.
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Tips & Warnings
Contact the lessor and let him know well ahead of time that you intend to cancel the lease and why. If it is an issue involving the lessor or her company, the issue may possibly be rectified.
Keep copies of all your communications and receipts in the event of a lawsuit.
