Early Termination Clause: Meaning and Lease Example

Early termination clause

An early termination clause is a lease term that lets a tenant, and sometimes the landlord, end a fixed-term lease before its end date by giving notice and, usually, paying a set fee. Without one, a tenant who leaves early can owe rent for the rest of the term, less whatever the landlord collects by re-renting.

Also called lease break clause · buyout clause

Example

A 12-month lease at $1,600 a month allows early termination with 60 days’ notice and a fee of two months’ rent. A tenant who gives notice on March 1, 2027 can leave on April 30 and pay a $3,200 fee on top of March and April rent, instead of risking rent through the end of the term if the unit sits empty.

In a lease it looks like…

Tenant may terminate this Lease before the end of the term by giving at least 60 days’ written notice and paying, with the notice, an early termination fee equal to two months’ rent.

By state

Many states require a landlord to try to re-rent a unit a tenant leaves early, which limits what the tenant owes, and federal law lets service members end a lease early on military orders; many states add protections for victims of domestic violence.

Your state’s landlord-tenant law

Plain English, not legal advice. Last reviewed September 29, 2026.