By mutual consent of both parties, an early termination of a commercial lease may be facilitated via a Deed of Surrender. This legal instrument will set out the stipulations that must be met by both parties prior to the termination of their rights and interests under the lease.
The parties will almost certainly engage in some negotiation in order to reach an agreement. In this article, What Is A Deed Of Surrender, we take a look at the process and mechanism involved.
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When might a deed of surrender be used by a landlord?
A Deed of Surrender should be executed by a landlord wishing to prematurely terminate a tenancy agreement and reclaim ownership of their property. As an alternative to serving notice, it is frequently more expedient and straightforward than the formal notice procedure.
Additionally, if the tenant is in default on rent or has caused damage to the property, a Deed of Surrender may be employed. The landlord may require the tenant to sign a Deed of Surrender as part of any settlement agreement in such situations.
A Deed of Surrender constitutes a significant undertaking that demands careful consideration. The tenant will no longer have any legal right to occupy the property upon signing the Deed of Surrender; therefore, the landlord must be certain that they want the tenant to vacate the premises prior to providing any consent.
When should a tenant execute a deed of surrender?
A Deed of Surrender should be executed by a tenant who wishes to vacate the premises prior to the expiration of their tenancy agreement. As an alternative to serving notice, it is frequently more expedient and straightforward than the formal notice procedure.
Additionally, if the tenant is overdue on rent or has caused damage to the property, a Deed of Surrender may be utilised. The landlord may require the tenant to sign a Deed of Surrender as part of any settlement agreement in such situations.
Notably, the tenant’s signature on a Deed of Surrender does not absolve them of any financial responsibilities stipulated in the tenancy agreement. For instance, in the event that the tenant has neglected to make rent payments or caused damage to the premises, they shall remain responsible for such obligations notwithstanding their execution of a Deed of Surrender.
Following the execution of the Deed of Surrender, what happens?
Upon the tenant and landlord signing the Deed of Surrender, it signifies that both parties have voluntarily discharged their respective interests and obligations with respect to the lease.
Hence, prior to entering into a Deed of Surrender, it might be advantageous for both parties to perform their own due diligence, which entails examining the lease to identify any outstanding obligations.
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We have a proven track record of helping clients deal with Deeds of Surrender. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Commercial Property Solicitors
It is important for you to be well informed about the issues and possible implications of a Deed of Surrender. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Commercial Property solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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