Surrender Agreements: a great way to avoid litigation.

A surrender agreement is completed with the occupant giving keys to the owner.

Many landlords and tenants call me asking how can I avoid housing court. The answer is a pre-litigation settlement agreement commonly known as a Surrender Agreement.

A Surrender Agreement is an agreement drafted which outlines the terms of the agreement including vacate date, security, rent owed and more. Many landlords and tenant elect to enter into a surrender agreement in order to avoid litigation.

Avoiding litigation is beneficial to both sides: for the landlord we are able to expedite the process and have a resolution for the landlord which typically results in the occupants vacating in 1-3 months. For occupants a surrender agreement is beneficial because we avoid court and avoid having an eviction case on the occupants record which is public record and often times the landlord is willing to waive money that is owed in exchange for vacating within a specified time period often the next 1-3 months.

Every matter is very different therefore unfortunately not every situation can be resolved via a surrender agreement as the agreement requires both sides to agree to the terms.

A Landlord must be very careful when attempting to negotiate with the occupants. The laws for harassment are occupant friendly therefore it is a delicate situation that must be navigated appropriately. Most importantly a landlord cannot scare or intimidate the occupants and if at any time the occupants say they do not want you do speak to them anymore about a settlement then the Landlord must not ask any further about the settlement.

It is wise to have an experienced attorney advise you along the way and draft the surrender agreement so that you are protected in every way possible.

Lastly and most importantly, NEVER give money to an occupant prior to them vacating the space, best practice is you complete an inspection, have them sign a vacate declaration, change the locks while at the premises then give them the funds if any.

Keep in mind, the tenant/occupants will continue to owe rent and/or use and occupancy for as long as they remain in the premises and a Landlord has no duty to waive any rent or pay any occupants anything.

My office handles surrender agreements very often, if you believe your tenant/occupants may be wiling to enter into a surrender agreement feel free to call me to discuss the pros and the cons as well as how to get the process started. You can call me directly at 718-938-9732.