When you sign a tenancy agreement, you are agreeing to be bound by the terms and conditions set out in the agreement, including the period of the fixed term.
If you decide to vacate the premises during the fixed term period, as per your tenancy agreement, there are financial compensation amounts that you are required to pay to the lessor.
Clause 4 of your tenancy agreement states:
Termination before end of fixed term—fee for breaking lease
(1) If the tenant ends a fixed term agreement before the end of the fixed term (other than for a reason provided for by the Residential Tenancies Act or the agreement), the tenant must pay a fee (a break fee) of the following amount:
(a) if the fixed term is 3 years or less—
(i) if less than half of the fixed term has expired—6 weeks rent; or
(ii) in any other case—4 weeks rent;
(b) if the fixed term is more than 3 years—the amount agreed between the lessor and tenant.
(2) The lessor agrees that the compensation payable by the tenant for ending a fixed term agreement before the end of the fixed term is limited to the amount of the break fee specified in subclause (1).
This amount will be due when you vacate the property.
Subscribe To Our Newsletter
Want to be kept in the loop of upcoming sales, investment options, and local information before it hits the market?
