Steps to cancel industrial property lease agreements

Written By Steps To Faculty Published June 29th, 2010

Are you in a rental agreement for industrial property that you rent? Do you need to get out of the agreement for any reason? Given the recent economic downturn and insufficient supply of jobs in the nation and even around the world, many business owners need to cancel their existing industrial property lease agreement either due to financial strains or for relocation. Although such lease agreements are cast in stone, by using careful negotiation strategies you can cancel an industrial property lease agreement. Let’s take a look.

Step 1 Review your existing agreement

Most lease agreements or rental agreements explicitly state the procedures for premature cancellation. Be sure to read every word and if needed consult legal advise if you do not understand the jargon and verbiage presented in the contract. You should also remember at this stage what was agreed upon at the time the agreement was drafted and then signed by you and the other party.

Step 2 Follow the rules

If there is a specific process for premature cancellation, then follow these rules step by step to avoid any legal consequences. Usually the agreements contain the outline of what you need to do to cancel the agreement early without having to do more than pay extra fees and provide notice.

Step 3 Give notice

Regardless of what process the agreement has for early cancellation, you need to give your landlord (or tenant if applicable) a minimum of 30 days notice. The other party that agreed to this lease agreement needs time to adjust and make other arrangements. 30 days is the minimum amount of time that is expected for such a notice.

Step 4 Write up termination agreement

More than likely your landlord or tenant will understand after you have given notice and will advise you to prepare a termination agreement if he or she does not provide you with one. Be sure to include relevant information such as the date you will leave the premises, the physical address, and of course your name and your landlord’s name or tenant’s name.

Step 5 Sign and date the agreement

After reviewing the new termination agreement, sign and date it. Also make a copy of it for your records to ensure proper adherence to agreement requirements. Although you must fulfill your end and remain on the premise until the agreed upon date, the landlord or tenant may have another party who wants the space. Negotiate with the landlord or tenant if this should arise to ensure you vacate in a timely manner without violating the termination agreement.

Remember to be clear with the other party.


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