Early termination “Diplomatic Clause
In Malaysia it is common for company rentals agreements to include a clause which allows early termination of the lease in the event the occupant is reassigned out of Malaysia or the State where he is leasing the property.
This is often referred to us as the “diplomatic clause” It is sometimes required that the tenant show evidence he is leaving such as cancellation of the work permit before the deposits are returned. Usually the lease agreements require that this clause cannot take effect during the first 12 months of the lease. In order to terminate the lease under this clause it is normal to require the tenant to give two months written notice or pay two months rental in lieu of notice.
This is often referred to us as the “diplomatic clause” It is sometimes required that the tenant show evidence he is leaving such as cancellation of the work permit before the deposits are returned. Usually the lease agreements require that this clause cannot take effect during the first 12 months of the lease. In order to terminate the lease under this clause it is normal to require the tenant to give two months written notice or pay two months rental in lieu of notice.
No comments:
Post a Comment