How to Structure a Surrender Agreement That Actually Protects the Landlord

A surrender agreement is the most powerful tool a commercial landlord has during a lease exit—but only if it is drafted correctly. Too many landlords accept vague, email-based “agreements” that leave them exposed to future claims and create confusion over possession, damages, and unpaid rent.

The Essential Components of a Proper Surrender Agreement

A legally sound agreement should include, at minimum:

• 1. The exact date and time of surrender
• 2. Condition of premises requirements
• 3. Outstanding balances and payment terms
• 4. Security deposit handling
• 5. A FULL mutual release of claims
• 6. Guarantor releases or modifications

If any one of these is missing, you do not have a complete surrender.

Why Releases Are Non-Negotiable

A tenant should not receive a “clean exit” while still retaining the right to sue the landlord later. A properly drafted release eliminates future disputes over maintenance, deposits, access, harassment claims, and build-out issues.

Document the Handover

Landlords must never accept keys without a documented walkthrough. Photographs, videos, and written confirmation protect your claim to damages and prevent false allegations later.

Download the Lease Exit Playbook

For templates and legal frameworks, download the Lease Exit Playbook.

Disclaimer

This article is for informational purposes only and does not constitute legal advice.