Surrender of a Lease

A lease surrender occurs when a commercial lease ends either voluntarily or involuntarily.

There are two primary ways this can happen:

Agreed Surrender (Deed):
In this scenario, both parties – the tenant and the landlord – mutually agree to terminate the lease. The terms of the surrender are formalised in a deed that outlines the process.

Surrender by Operation of Law:
Unlike the explicit agreement in a deed, this type of surrender does not involve a written contract. Instead, it occurs through actions that imply both parties’ consent to end the lease. These actions must align with circumstances that would not be allowed if the lease were still in effect.

Several situations can trigger a surrender by operation of law:

Vacating Premises:
If you, as the commercial tenant, move out of the business premises without adhering to the lease terms, and your landlord accepts this, it implies surrender.
New Lease with Another Tenant: If your landlord creates a new lease for the property with another tenant before your lease expires, and you accept this arrangement, it constitutes surrender.

Invalid Notices:
Sometimes, either party may serve an invalid notice. If both parties treat it as valid and act upon it, it implies surrender.
Variation of Lease: If you and your landlord agree to a variation of the lease (e.g., extending the term), it effectively surrenders the existing lease.