What does it mean?
A move-out agreement is a voluntary arrangement between landlord and tenant for the tenant to vacate, often in exchange for financial compensation. This type of agreement is used when the landlord wants the tenant to leave but the tenant has security of tenure preventing eviction. The agreement means the tenant voluntarily waives their security of tenure in exchange for compensation.
Move-out agreements occur in situations such as major renovations, demolition, or conversion to tenant-owned apartments. Compensation may consist of financial payment, assistance finding replacement housing, or a combination. It is important that the tenant carefully considers the offer and does not feel pressured. A move-out agreement must be in writing and cannot be forced. The tenant is strongly advised to consult the Tenants' Association or seek legal advice before signing.
Key Points
- Voluntary agreement — cannot be forced
- Tenant waives security of tenure in exchange for compensation
- Common during renovations, demolition, or conversion projects
- Should always be in writing with clear terms
- Tenant is advised to seek legal counsel before signing
Practical Tip
Never sign a move-out agreement under time pressure. Request time to consider and contact the Tenants' Association for advice. Negotiate the compensation — you have a strong position because security of tenure protects you. Ensure the compensation covers moving costs and any rent difference.
Legal Basis: 12:46 JB (security of tenure), 12:1 paragraph 5 JB (waiver agreements)
Based on content from Bofrid's Knowledge Bank