Deed of Surrender of Lease
A deed of surrender of lease ends a lease early by agreement between the landlord and the tenant. We prepare and check surrender deeds for either side.
- Fixed fee, confirmed before we start.
- For landlords and tenants.
- Signed electronically.
When you use a deed of surrender
Most commercial leases don’t let either party end the lease early. If the tenant wants to leave, or the landlord wants the premises back, the parties can agree to end it. A deed of surrender records that agreement.
Common reasons are a business closing or relocating, the tenant selling without a buyer for the lease, or the landlord redeveloping or re-letting to someone else.
If you want to leave but the landlord won’t agree, an assignment of the lease or a sublease may be an option. Our guide on how to get out of a commercial lease compares the options.
What the deed covers
A deed of surrender usually deals with:
- the surrender date
- any surrender payment, and who pays whom
- rent and outgoings up to the surrender date
- make good: what work must be done, a payment instead, or none
- fitout and equipment left behind
- return of the bond or bank guarantee
- releases for the landlord, the tenant and the guarantors
- GST on any payment
Releases
The releases are the most important part of the deed. They set out which claims each party gives up.
A tenant usually wants a full release from all obligations under the lease, past and future, and a release for its guarantors. A landlord may want to keep the right to claim unpaid rent or damage it doesn’t yet know about. Agree which claims survive and write them down.
Make good and the bond
If the deed doesn’t deal with make good, the lease’s make good clause may still apply when the lease ends. Agree the work, or a payment instead, in the deed. If you already disagree about make good, see our make good dispute page.
The deed should also say when the landlord returns the bond or releases the bank guarantee, and whether it can deduct anything first.
Registered leases
If the lease is registered on title, the surrender must be registered at the state titles office so the title no longer shows the lease. If the lease itself is mortgaged or sublet, the mortgagee or subtenant may need to consent. We can register the surrender for you.
Ending a lease early?
Tell us what you and the other side have agreed. We'll confirm the fee before we start.
- Fixed fees.
- Online, Australia-wide.
- Landlords and tenants.