The Commercial Lease Termination Agreement is essential when parties wish to formally end a commercial lease before its scheduled expiration date in Hong Kong. This document is particularly relevant in situations such as business restructuring, relocation, or mutual agreement to end the tenancy early. It must comply with Hong Kong's Landlord and Tenant (Consolidation) Ordinance and related property laws, ensuring all termination conditions, financial settlements, and property handover requirements are clearly documented. The agreement typically includes provisions for security deposit return, final utility payments, premises reinstatement obligations, and mutual releases from future claims, providing a clean break for both parties while minimizing potential future disputes.
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1. Parties: Identification of the landlord and tenant, including their registered addresses and company details
2. Background: Recitals explaining the existing lease arrangement and the parties' intention to terminate
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination: Core provision confirming the termination date and mutual agreement to terminate
5. Financial Settlement: Details of any final rent payments, security deposit return, and other financial matters
6. Handover Requirements: Specifications for the condition in which the premises must be returned
7. Release and Waiver: Mutual release from lease obligations and waiver of claims post-termination
8. Confidentiality: Obligations regarding confidentiality of the termination agreement terms
9. Governing Law: Confirmation of Hong Kong law as governing law and jurisdiction
10. Execution: Signature blocks and execution requirements
1. Outstanding Disputes: Include when there are existing disputes that need to be resolved as part of the termination
2. Reinstatement Works: Detailed section when specific renovation or restoration works are required
3. Surviving Provisions: When certain provisions of the original lease need to survive termination
4. Third Party Rights: When there are subtenants or other third parties with interests in the premises
5. Insurance: When specific insurance arrangements need to continue or be terminated
6. Representations and Warranties: When additional confirmations about the parties' status or authority are required
1. Schedule 1 - Original Lease Details: Copy or details of the original lease being terminated
2. Schedule 2 - Premises Details: Description and/or floor plan of the premises being surrendered
3. Schedule 3 - Financial Statement: Detailed breakdown of all financial settlements, including any outstanding amounts
4. Schedule 4 - Handover Inspection Checklist: Detailed checklist for premises condition and handover requirements
5. Schedule 5 - Existing Fixtures and Fittings: Inventory of items to be removed or left in the premises
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Banking & Financial Services
Professional Services
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Relevant Teams
Legal
Real Estate
Facilities
Finance
Operations
Risk & Compliance
Property Management
Asset Management
Corporate Services
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Relevant Roles
Legal Counsel
Property Manager
Facilities Manager
Real Estate Director
Chief Financial Officer
Operations Manager
Asset Manager
Leasing Manager
Commercial Director
Risk Manager
Company Secretary
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