Fact Pattern: You are a tenant’s agent. The landlord and tenant have entered into a C.A.R. Residential Lease Agreement (RLMM) to commence on June 15, 2025. Due to some personal problems, the tenant no longer wants to lease the property after all.

Multiple Choice Question: Which of the following C.A.R. forms should you use to help the tenant cancel the lease without any potential liability? Pick the best answer:

A. Notice of Change in Terms of Tenancy (CTT).
B. Notice to Quit (NTQ).
C. Notice to Tenant to Pay (PPN).
D. Cancellation of Lease (CLR).
E. Commercial Release Agreement (CML-REL). 

Answer: Answer A is not wrong, but it’s not the best answer. The C.A.R. Notice of Change in Terms of Tenancy (CTT) is generally used by a landlord to revise the terms of an existing tenancy. For this situation, it’s possible for a tenant to use the CTT form to propose a cancellation of the lease to the landlord, but words need to be added to obtain a release from the landlord from any potential liability.

Answer B is wrong. The Notice to Quit (NTQ) is generally used by a landlord to serve a 3-day notice of termination to an existing tenant who is already in possession of the leased premises.

Answer C is wrong, but it alludes to a possible strategy for the tenant. If the tenant does not pay the move-in costs, the landlord may elect to void the lease by first serving the tenant with a 2-day Notice to Pay (PPN) (see paragraph 2 of the RLMM). As the tenant’s agent in this situation, we would leave it up to the tenant to decide whether the tenant wants to wait and see whether the landlord elects to void the lease, as permitted under paragraph 2.

Answer D is the correct answer. A tenant may use the Cancellation of Lease (CLR) to request a mutual cancellation of the lease (see paragraph 1D). Hopefully, the landlord will agree to counter-sign. If so, the CLR includes a mutual release for the landlord and tenant from all claims against each other concerning the lease agreement (see second to the last paragraph).

Answer E is not wrong, but it’s probably not the best answer. The Commercial Release Agreement (CML-REL) is a release of claims for sellers and buyers. The form could be revised for use by a landlord and tenant, instead of a seller and buyer. As the tenant’s agent, you can show the CML-REL form to the tenant to let the tenant decide whether to try to get the landlord to sign it. However, generally speaking, landlords are probably more inclined to sign the CLR, rather than the CML-REL.

-Thank you to Janien Canel (Calabasas Office) for suggesting this week’s legal tip!

Copyright© 2025 Shared Success Center, LLC (serving HomeServices of America companies). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of June 2, 2025. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals. Written by Stella Ling, Esq.