Early Termination Clause

What This Clause Does

Life changes — jobs move, relationships end, health shifts. An early termination clause determines what it costs you to exit a lease before it's up. Penalties range from forfeiting your security deposit to paying several months of remaining rent.

Some leases require you to continue paying rent until a new tenant is found (a mitigation obligation on the landlord). Others require a flat buyout fee. In many jurisdictions, landlords have a legal duty to mitigate — they must make reasonable efforts to re-rent — but not all leases reflect this correctly.

What This Looks Like in a Contract

"Tenant may terminate this Lease prior to its expiration by providing [60/90] days' written notice and paying an early termination fee equal to [2 months'] rent. Tenant remains liable for rent until a replacement tenant is secured or the lease term expires, whichever occurs first."

Red Flags to Watch For

• Early termination fee exceeds 3 months' rent
• No landlord obligation to mitigate (find a new tenant)
• Notice period longer than 60 days
• You remain liable for full rent through lease end regardless of landlord's ability to re-let

Negotiation Strategies