A tenant buyout agreement is a legal contract between a landlord and a tenant where the landlord offers the tenant a sum of money to vacate the rental property before the end of their lease agreement. This agreement is common in cities with rent control laws or when a landlord wants to make significant renovations to the property.
If you`re a landlord and are looking to draft a tenant buyout agreement, it`s crucial to ensure that it`s legally binding and fair to the tenant. Here`s a tenant buyout agreement sample to give you an idea of what to include in the agreement.
Tenant Buyout Agreement Sample
This Tenant Buyout Agreement (the “Agreement”) is made and entered into on [Date] by and between [Landlord Name] (the “Landlord”) and [Tenant Name] (the “Tenant”).
1. Consideration: In exchange for vacating and surrendering the rental property located at [Address] (the “Property”) on or before [Date], the Landlord shall pay the Tenant the sum of [Amount] (the “Buyout Consideration”).
2. Release of Liability: Upon the Tenant`s receipt of the Buyout Consideration, the Tenant acknowledges and agrees that they are releasing and waiving any claims, damages, liability, and/or causes of action against the Landlord relating in any way to the tenancy of the Property.
3. Tenant`s Representations: The Tenant represents and warrants to the Landlord that they have the authority to enter into this Agreement and that they have not assigned or transferred any right or interest in the Property.
4. Mutual Representations: Both the Landlord and the Tenant represent and warrant that they have fully read and understood this Agreement, and that they have had the opportunity to consult with legal counsel of their choice.
5. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [State], without giving effect to any principles of conflicts of law.
6. Entire Agreement: This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements between the parties.
In Witness Whereof, the parties have executed this Agreement as of the date first above written.
[Landlord Name], [Tenant Name]
When drafting a tenant buyout agreement, it`s important to make sure that it complies with the applicable state and local laws. You should also consult with a qualified attorney to review and approve the agreement before presenting it to the tenant.
In conclusion, a tenant buyout agreement is a beneficial option for landlords who want to end a tenancy early or make significant renovations to the property. By using this tenant buyout agreement sample and consulting with legal counsel, landlords can draft a legally binding and fair agreement that benefits both parties.