Deed Of Surrender

Definition of 'Deed Of Surrender'


A legal document transferring property ownership for a given time period, provided certain conditions are met. A deed of surrender allows one party, such as a renter, to relinquish his or her claims on a particular piece of property to the party holding the underlying title (the landlord). Once the deed of surrender has been signed, any outstanding claims on the property can be resolved. 

Investopedia explains 'Deed Of Surrender'


A deed of surrender can be used to terminate any commercial property lease and/or relieve tenants of their lease obligations. In exchange for giving up their rights to a property, the tenant is released from further claims and demands by the landlord, and the landlord is released from further claims and demands by the tenant. The deed of surrender outlines each party’s rights.  

A deed of surrender is typically used in situations where the landlord and tenant are on (at least) somewhat good terms. If either party has breached the lease contract, ending the legal relationship becomes more complicated. For example, if a tenant owes a landlord several months’ back rent that the landlord intends to collect, the landlord may not execute a deed of surrender, because that would give up the rights to back rent.

The deed of surrender states the condition in which the tenant will leave the property, affirms the tenant has fulfilled any financial obligations to the landlord, states the landlord has returned the tenant’s deposit or a portion thereof, or that the tenant is not due a refund of deposit at all. The document is signed by both the landlord and tenant, as well as by a witness like a notary public. 

 



comments powered by Disqus
Hot Definitions
  1. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  3. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  4. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  5. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  6. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
Trading Center