What Is a Lease Release Form?
A lease release form mutually cancels an existing lease before its end date. It differs from a lease termination letter because it’s a reciprocal agreement between the landlord and tenant. On the other hand, a lease termination letter is a request to cancel issued by one party. A lease termination letter can lead to a lease release form, but they are distinct documents.
A lease release agreement (also called a lease termination agreement) releases the landlord and the tenant from any future obligations related to the lease. Once it’s signed, the parties are no longer responsible for:
- Rent payments
- Legal liabilities
- Breaches or violations
- Wear and tear
- Maintenance
By formally ending all remaining tenancy rights, a lease release protects landlords from future disputes. It confirms that the property is legally vacant and ready for immediate re-rental to a new tenant.
A rental release form is commonly used in mutual decisions when a dispute cannot be otherwise resolved. It’s also used when the landlord is willing to accommodate a tenant’s job relocation, military deployment, or financial hardship. If the landlord wants to sell their property early, they may be able to negotiate a lease release with their tenant.
Servicemembers Civil Relief Act
The Servicemembers Civil Relief Act (50 U.S.C. § 3955) allows active-duty service members to terminate residential leases early without penalties if they receive Permanent Change of Station (PCS) orders or deployment orders for 90 days or more. In these cases, landlords can show compliance by entering a release from a rental agreement.
What to Include in a Release of Lease Agreement
Your rental lease release form must include the following details to ensure it’s clear what lease is being canceled:
- Parties details. List the landlord’s and tenant’s names and addresses.
- New tenant. Specify whether there will be a remaining or replacement tenant.
- Original lease. Record the date that the original lease was entered into and write the address of the leased property.
- Statement of full and final release. Explain that the parties will be released from known and unknown obligations going forward. This statement helps prevent a party from later pursuing the other for an issue that is “just discovered.”
- Release date. Clarify when the parties will be released from the obligations under the original lease.
- Outstanding obligations. Note whether all outstanding obligations have been satisfied. If not, record the remaining balance that the tenant owes in your mutual lease termination agreement.
- Security deposit handling. The security deposit may be transferred to a new tenant, returned to the original tenant, or handled between the tenants. Use Legal Templates’s security deposit return letter if you’re returning it to the original tenant.
- Move-out details. Discuss when the tenant will vacate the property.
- Confirmations. Confirm whether the tenant has undisclosed claims or disputes, whether they have the authority to sign the agreement, and whether you have the authority to release them. If you are under a sublease agreement, a lease release may not be legally permissible.
- Legal preferences. Clarify whether the winning party in a dispute will be able to recover legal fees.
- Notice delivery. State how official notices regarding the lease release can be sent. You can indicate preferences for personal delivery, certified or registered mail, overnight courier, or email.
- Effective date and governing law. Write the date when the agreement will go into effect. Note the state whose laws will oversee the release of the lease agreement.
Alternatives to a Lease Release Agreement
Consider some of Legal Templates’s other forms that can be used as an alternative to a lease release:
- Lease assignment: Assign the lease to a new tenant.
- Lease renewal: Renew a lease with updated terms that reflect both parties’ interests.
- Lease non-renewal: State that you and the other party will not renew a lease.
Release of Lease Agreement Sample
View our release of lease agreement sample to see how to phrase the mutual end of a rental contract. Complete yours using Legal Templates’s guided form, then download it in PDF or Word format.
