Process on properly terminating a lease agreement early

Usually there is a clause about forfeiting 2 months deposit and it can be tied up with the wording of terms for the 1st year*.  Probably best to deal with owner, but it's hard to say because the owner has probably already spent the first year's rent

Second level approach if you run into difficulty will be agent

Third level approach is small claims tribunal

*Hopefully there is a cancellation during the first year otherwise you will owe 12 months rent.

i would find it odd that I would have to owe 12 months rent, yet would have a clause specifically state what I need to do to terminate the lease early.

Upon reading the agreement again, the only clear way that my deposit gets forfeited is if I breach the terms of the agreement in any way. If I give my landlord 2 months notice, which is clearly stated in the agreement, then I should get my deposit back and not owe him anything else.

Also, what do you mean that the owner has already spent the first year's rent? Meaning he already expects the money to come in so he spent it all in advance?

I haven't seen your lease but know of my own. They are often worded obscurely. The reason for owing 12 months rent is the local custom, based on Islamic principles, that a contract is binding.

You are breaching the contract therefore, but can give two months notice if you want to leave (but will honour the financial commitment made).

As I said, the devil is in the detail.

Oh I see, did not even think about that in terms of Islamic custom. Will probably speak with our property agent just to be sure. Thanks again

Any early termination of the lease will require you to pay the remaining months stipulated on the contracted. If you have stayed for 4 months, early termination will require you to pay for the remaining 8 months even if you're leaving the said premises. Because your deposit is 2 1/2 months, you can just pay 5 1/2 months to the owner.

No, you do not need to involve the agent if you are already in contact with the owner.

I'm a realtor, in your case, I would blame the realtor/agent that you had initially subscribed to help you out in looking for a place. Why? I have in the past helped many expats on this forum here to look for a home in KL and I will always ask important questions pertaining to their needs in lifestyle and work before proposing what's best for them.

I think it is best to get a lawyer to peruse the agreement and advise you accordingly.

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iantang wrote:

Any early termination of the lease will require you to pay the remaining months stipulated on the contracted. If you have stayed for 4 months, early termination will require you to pay for the remaining 8 months even if you're leaving the said premises. Because your deposit is 2 1/2 months, you can just pay 5 1/2 months to the owner.

No, you do not need to involve the agent if you are already in contact with the owner.

I'm a realtor, in your case, I would blame the realtor/agent that you had initially subscribed to help you out in looking for a place. Why? I have in the past helped many expats on this forum here to look for a home in KL and I will always ask important questions pertaining to their needs in lifestyle and work before proposing what's best for them.

I have to pay the remaining months even if there is a stipulation in the contract that states that if any party wants to terminate, they would just have to give the other side 60 days notice?

There is also no mention of paying any remaining months in the contract.

There can be a clause (often called a "Diplomatic Clause") which states what is payable if notice is given before the end of the agreed contract period. If there is no such clause then usually the balance of the rental is payable. Giving notice is not the same thing. But you may be able to negotiate.

Unfortunately its because of how contract law works in a Muslim country. The agreement is made upfront for the stipulated period and terms. Estate agents should be assisting foreigners to put a break clause or diplomatic clause into all Lease Agreements. But of course, they are not obliged to do so and they are actually representing the owner at all times.