What is a Section 98 Agreement and How Does it Work?
A Section 98 Agreement is a legal agreement between a tenant and their landlord. This agreement is also known as a `surrender agreement`. It allows a tenant to surrender their lease early, before the end of the agreed-upon lease term, with the consent of their landlord.
Why Would a Tenant Want to Surrender Their Lease Early?
There are different reasons why a tenant may want to surrender their lease early. These reasons may include job relocation, financial difficulties, or other personal circumstances that make it difficult to continue renting the property.
How Does a Section 98 Agreement Work?
The process of a Section 98 Agreement involves negotiations between the tenant and the landlord. The tenant will need to provide a written notice to the landlord requesting to terminate the lease early. Once the landlord receives the notice, they will usually arrange a meeting with the tenant to discuss the terms of the Section 98 Agreement.
The terms of the agreement will usually include the following:
– The date when the tenant will vacate the property
– The payment of any outstanding rent or other charges
– The return of the keys and the condition of the property at the end of the tenancy
– The release of the tenant from any future obligations under the lease.
Once the terms of the Section 98 Agreement are agreed upon, both parties will sign it and it will become legally binding.
What Are the Benefits of a Section 98 Agreement?
The main benefit of a Section 98 Agreement for the tenant is the ability to terminate the lease early without breaking the terms of the lease and without suffering any penalties or legal consequences. The landlord also benefits from this agreement by avoiding the need for costly legal action to terminate the lease.
In addition, a Section 98 Agreement can also be beneficial for both parties in situations where the tenant has been unable to pay rent or has damaged the property. The agreement can provide a way for the landlord to recover some of their losses while avoiding the need for legal action.
Conclusion
In summary, a Section 98 Agreement is a legal agreement that allows a tenant to surrender their lease early with the consent of their landlord. This agreement can be beneficial for both parties and can help avoid costly legal action. If you are a tenant considering surrendering your lease early, it`s important to consult with your landlord and seek legal advice to ensure that the agreement is fair and legally binding.