Benefits and Risks of Mutual Agreement

Mutual agreement offers significant benefits: it is fast, cost-effective and avoids court proceedings. Tenants can move out directly without the statutory one-month notice period, while landlords can free up the property for their own use. There is room for negotiation on compensations, such as real estate agent fees or a bonus for early delivery. However, risks lurk: without written documentation, a party can later withdraw, leading to legal uncertainty. Tenants risk homelessness if the new property is not available on time, and landlords may face issues with outstanding payments. It is crucial to put all agreements in writing, including deposit refund and damage settlement. In case of rent arrears, the landlord remains protected through the court. This approach is ideal for harmonious relationships, but requires trust and professionalism. Compare it to a settlement agreement in employment law, where flexibility is central. (202 words)