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Termination Of Sublease Agreement Template for Hong Kong

A comprehensive legal document governed by Hong Kong law that formally terminates an existing sublease agreement between a sublandlord and subtenant. It outlines the terms and conditions for ending the sublease relationship, including the termination date, premises handover requirements, settlement of outstanding payments, return of security deposits, and mutual release of future obligations. The agreement ensures compliance with Hong Kong's property and landlord-tenant laws while providing clear documentation of the parties' agreement to terminate their contractual relationship.

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What is a Termination Of Sublease Agreement?

The Termination of Sublease Agreement is a crucial document used when parties to a sublease mutually agree to end their lease arrangement before its original expiration date or to document the formal conclusion of a sublease at its natural end. This agreement, governed by Hong Kong law, serves multiple purposes: it officially documents the parties' agreement to terminate, establishes the termination date, outlines premises handover procedures, addresses financial settlements, and provides mutual releases from future obligations. It must comply with Hong Kong's Landlord and Tenant (Consolidation) Ordinance and related property laws, often requiring consideration of head lease obligations and potentially the head landlord's consent. The document is particularly important for risk management and maintaining clear property records, as it helps prevent future disputes by clearly documenting the termination terms and each party's rights and obligations during the termination process.

What sections should be included in a Termination Of Sublease Agreement?

1. Parties: Identification of the sublandlord and subtenant, including full legal names and addresses

2. Background: Details of the original sublease agreement including date, premises description, and reference to head lease if relevant

3. Definitions: Definitions of key terms used throughout the agreement, including 'Termination Date', 'Premises', 'Original Sublease', etc.

4. Agreement to Terminate: Clear statement of mutual agreement to terminate the sublease and the effective termination date

5. Vacation of Premises: Requirements for delivering vacant possession and the condition in which premises must be returned

6. Settlement of Accounts: Provisions for final settlement of rent, utilities, management fees, and other charges

7. Return of Security Deposit: Terms for the return of security deposit, including timing and any deductions

8. Mutual Release: Mutual release of future claims and obligations under the sublease

9. Governing Law: Specification that Hong Kong law governs the agreement

10. Execution: Signature blocks for all parties and witnessing requirements

What sections are optional to include in a Termination Of Sublease Agreement?

1. Surviving Obligations: Used when certain obligations from the original sublease need to survive termination

2. Handover Inspection: Include when a formal inspection process is required before premises handover

3. Reinstatement Works: Required when specific restoration or repair works must be completed before termination

4. Third Party Consents: Include when head landlord's or other third party consent is required for termination

5. Outstanding Disputes: Used when there are existing disputes that need to be addressed as part of termination

6. Confidentiality: Include when parties wish to keep the termination terms confidential

7. Return of Keys and Access Devices: Required when there are specific provisions for returning access methods

8. Utilities Transfer: Include when utilities accounts need to be terminated or transferred

What schedules should be included in a Termination Of Sublease Agreement?

1. Schedule 1 - Original Sublease: Copy or key details of the original sublease agreement being terminated

2. Schedule 2 - Premises Details: Detailed description of the premises including floor plan if applicable

3. Schedule 3 - Settlement Statement: Detailed breakdown of final accounts, including any outstanding payments or refunds

4. Schedule 4 - Handover Checklist: List of items to be checked during premises handover

5. Schedule 5 - Reinstatement Requirements: Specific requirements for premises restoration if applicable

6. Appendix A - Photographic Evidence: Photos documenting the condition of premises at termination

7. Appendix B - Third Party Consents: Copies of any required third party consents to termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Hong Kong

Publisher

Genie AI

Cost

Free to use

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