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. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  2. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  3. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  4. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  5. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
  6. Negative Carry

    A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.
Trading Center