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. 

BREAKING DOWN '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. 

 

RELATED TERMS
  1. Lease

    A legal document outlining the terms under which one party agrees ...
  2. Landlord

    A real estate owner who rents or leases land or a building to ...
  3. Rent Guarantee Insurance

    Insurance bought by a tenant that pays the monthly rent for a ...
  4. Double Net Lease

    An agreement in which the tenant is responsible for both property ...
  5. Gross Lease

    A type of commercial lease where the landlord pays for the building's ...
  6. Single Net Lease

    A commercial real estate lease agreement in which the tenant ...
Related Articles
  1. Investing

    Top 4 Nightmares For Real Estate Investors

    Renting out your property is not without risks; the good news is, they don't have to keep you up at night.
  2. Investing

    The Complete Guide To Becoming A Landlord

    Being a landlord can be a fulfilling and financially rewarding experience. However, the decision to become a landlord should not be taken lightly.
  3. Investing

    Buying a House with Tenants: A Quick Guide

    Before buying a house with tenants, know the risks and responsibilities you're taking on.
  4. Financial Advisor

    3 Things to Consider When Renting By the Room

    Although renting by the room can increase returns on rental property, it does come with a few caveats.
  5. Managing Wealth

    Top 5 Ways to Protect Yourself Against Problem Renters

    Renting seems like the perfect way to mitigate the costs of an extra home that won’t sell; the intended course of action when a property was purchased for an unbelievable price, or many of the ...
  6. Investing

    Are You A Good Tenant?

    Landlords are looking for specific factors that are perceived to make up good tenants - do you fit the profile?
RELATED FAQS
  1. What are the three "nets" of an NNN lease?

    Learn what the three "nets" are in an NNN lease and how they affect the responsibilities of both landlord and tenant in a ... Read Answer >>
  2. Do landlords set up escrow accounts for their tenants' security deposits?

    Learn when and why landlords place rental property security deposits in separate escrow accounts to make sure the money is ... Read Answer >>
  3. Why might landlords require renters insurance?

    Learn why landlords may require tenants have renters insurance, and find out what type of coverage landlords can request ... Read Answer >>
Hot Definitions
  1. Money Market

    A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. ...
  2. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
  3. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  4. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  5. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  6. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
Trading Center