How to Terminate a Lease Contract

A lease contract provides information about terminating the lease.

Whether you are buying a home or a commercial property, breaking a lease may be necessary for you to move on with your purchase process. A lease contract is a legal document that provides specific terms for both the owner and tenant. Since the owner has the option of reporting your payment history to a credit agency, it is important to handle a lease termination carefully. Walking away from a lease contract is not a good idea, since it can harm your credit rating and future reference from the owner.

Instructions

1. Review the original lease contract. It should have the name and address of the lessor, or landlord, along with the terms of agreement. This includes what duties each party is expected to perform under the contract.

2. Locate the "early exit" terms within the lease. This explains what you must do to terminate the lease contract between you and the landlord.

3. Provide a written notice to the landlord giving him ample time to locate another tenant. List the date you will vacate the property along with the reason. Also, deliver the notice and talk to him in person to explain why you need to terminate the lease. Offer to help locate a new tenant to lease the property.

4. Perform the duties set forth in the lease contract. This may be a buyout clause or option that requires you to pay the landlord a fee for terminating the contract. If it is a large amount of money, ask the landlord to set payments to make it easier.

References

• Investopedia: Lease
• Bankrate: How to Break a Lease and Stay Creditworthy
• Entrepreneur: How to Get Out of a Commercial Lease
• Bankrate: Protect Yourself in a Lease-Purchase Deal