Cash for Keys Agreement Guide: What Landlords and Tenants Need to Know

Q: What exactly is a Cash for Keys agreement?

A Cash for Keys agreement is a legally binding document where a landlord offers a tenant financial compensation in exchange for vacating the property earlier than their lease term. The agreement typically specifies the move-out date, the amount of money offered, the condition the property must be left in, and other terms both parties must follow. This arrangement provides an alternative to formal eviction proceedings, which can be lengthy, costly, and potentially damaging to both parties.

Q: What are the benefits for landlords?

For landlords and property owners, Cash for Keys offers several advantages: 1) It's typically faster than formal eviction, which can take months depending on local laws; 2) It's often less expensive than legal proceedings; 3) It reduces the risk of property damage that might occur during a contentious eviction; 4) It allows for quicker property sale or re-rental; and 5) It maintains a more amicable relationship with the tenant, avoiding potential negative reviews or reputation damage.

Q: What are the benefits for tenants?

Tenants can benefit from Cash for Keys in several ways: 1) Receiving financial assistance that can help with moving expenses and securing new housing; 2) Avoiding an eviction record, which can severely impact future rental applications; 3) Having more control over their moving timeline; 4) Maintaining a neutral or positive reference from the landlord; and 5) Avoiding the stress and uncertainty of eviction proceedings.

Q: How much money should be offered in a Cash for Keys agreement?

The appropriate amount varies based on factors like local rental market conditions, the tenant's current rent, moving costs in your area, and how quickly the landlord needs the property vacated. Common offers range from one to three months' rent, plus the return of the security deposit (assuming no damages). For tenants in high-cost areas or with special circumstances, the amount might be higher. Landlords should calculate what an eviction would cost in time and money, and consider offering a portion of those savings to the tenant.

Q: Is a Cash for Keys agreement legally enforceable?

Yes, when properly drafted and executed, a Cash for Keys agreement is legally binding. To ensure enforceability, the agreement should: 1) Be in writing; 2) Clearly state all terms and conditions; 3) Include consideration (the payment amount); 4) Be signed by all parties; 5) Comply with state and local laws regarding tenant rights; and 6) Include a release of claims clause. Having an attorney review the agreement is highly recommended to ensure it meets all legal requirements in your jurisdiction.

Q: What should be included in a Cash for Keys agreement?

A comprehensive Cash for Keys agreement should include: 1) Names and contact information for all parties; 2) The property address; 3) The agreed-upon vacate date and time; 4) The exact payment amount and when/how it will be provided; 5) Condition requirements for the property upon surrender; 6) A statement that the tenant is voluntarily surrendering possession; 7) A release of claims by both parties; 8) Procedures for final inspection; 9) Consequences if either party breaches the agreement; and 10) Signatures of all parties with the date.

Q: As a tenant, what should I consider before accepting a Cash for Keys offer?

Before accepting a Cash for Keys offer, tenants should: 1) Calculate actual moving costs, including truck rental, deposits for new housing, utility transfers, and time off work; 2) Research the local rental market to understand if you can find comparable housing at similar rates; 3) Consider your legal rights - in some jurisdictions, you may have significant protections against displacement; 4) Verify if the amount offered will truly cover your expenses; 5) Negotiate if the initial offer seems insufficient; and 6) Get the entire agreement in writing before agreeing to anything or beginning to pack.

Q: As a landlord selling a property, when should I consider offering Cash for Keys?

Consider offering Cash for Keys when: 1) You have a pending sale and need to deliver a vacant property by a specific date; 2) The tenant has a fixed-term lease that extends beyond your desired sale timeline; 3) You want to renovate before selling to maximize value; 4) Local eviction laws would make a formal eviction particularly time-consuming; 5) The tenant has expressed financial hardship that might make a voluntary move with compensation attractive; or 6) You want to maintain goodwill and avoid potential negative publicity during your property sale.

Q: How should the money be handled in a Cash for Keys transaction?

The safest approach is to make payment only after the tenant has fully vacated and surrendered the property in the agreed-upon condition. The agreement should specify that payment will be made after a final walkthrough confirms compliance with all terms. Payment methods should be secure and documented - a cashier's check or electronic transfer is preferable to cash. Some landlords structure the payment in two parts: a small amount upfront to help with moving expenses and the remainder upon complete vacancy and key surrender.

Q: What if the tenant takes the money but doesn't leave?

To prevent this situation, never provide the full payment until after the tenant has completely vacated and surrendered the keys. If a tenant does breach the agreement by accepting payment and refusing to leave, the signed Cash for Keys agreement strengthens your position in subsequent eviction proceedings. The agreement should include language specifying that accepting payment constitutes agreement to all terms, and that failure to vacate as agreed constitutes a breach of contract with specific consequences, potentially including immediate eviction proceedings and repayment of the funds.

Learn how Cash for Keys agreements work, the benefits for both landlords and tenants, and important legal considerations before signing this alternative to formal eviction.

Introduction

A Cash for Keys agreement is a legal arrangement where a property owner offers a financial incentive to a tenant to vacate a rental property voluntarily before their lease ends. This approach provides an alternative to the formal eviction process, potentially saving both parties time, money, and stress. Whether you're a tenant being asked to leave due to a property sale, a landlord looking to sell your rental property, or a real estate investor managing multiple properties, understanding how Cash for Keys works is essential for protecting your interests and ensuring a smooth transition.

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Key Things to Know

1
Cash for Keys agreements must comply with all state and local tenant protection laws - what works in one jurisdiction may not be legal in another.
2
Document everything with photos before and after the tenant moves out to avoid disputes about property condition.
3
The agreement should explicitly state that it supersedes any previous lease agreements between the parties.
4
Consider having a neutral third party present during the final walkthrough and payment exchange to witness compliance with the agreement terms.
5
For landlords, the payment may be tax-deductible as a business expense - consult with a tax professional.
6
Tenants should understand that the payment received may be considered taxable income - consult with a tax professional.
7
Both parties should keep copies of the signed agreement and proof of payment for at least three years after the transaction.
8
In rent-controlled jurisdictions, additional regulations may apply to Cash for Keys agreements, sometimes including minimum payment amounts.

Key decisions before you file

Before you file a Cash for Keys Agreement in Illinois, a few decisions shape the document: which option to choose and what each one means. The Cash for Keys Agreement guide walks through them.

Open the Cash for Keys Agreement guide

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CASH FOR KEYS AGREEMENT

PROPERTY VACATION AND SETTLEMENT AGREEMENT

THIS CASH FOR KEYS AGREEMENT (hereinafter referred to as the "Agreement") is made and entered into on this _____ day of ________________, [YEAR], by and between:

LANDLORD/OWNER: ________________________________, a(n) _________________________ [individual/business entity type] with a principal place of business/residence at _________________________________________________ (hereinafter referred to as "Owner"); and

TENANT(S): _________________________________________________ [full legal name(s) of all tenants on the lease] (hereinafter collectively referred to as "Tenant"), currently residing at the Property described below.

Owner and Tenant may be individually referred to as a "Party" and collectively as the "Parties."

RECITALS

WHEREAS, Owner is the legal owner of or authorized representative for the real property located at _________________________________________________ [complete legal address], including unit number _________ if applicable, more particularly described as _________________________________________________ [detailed property description] (hereinafter referred to as the "Property");

WHEREAS, Owner's legal ownership of or authority to manage the Property is evidenced by _________________________________________________ [deed, property management agreement, or other documentation];

WHEREAS, Tenant currently occupies the Property pursuant to a Lease Agreement dated ________________, [YEAR] (hereinafter referred to as the "Lease"), with an original term of ________________ [term length];

WHEREAS, the current status of the Lease is ________________ [active, month-to-month, expired], and the following violations or issues, if any, currently exist: _________________________________________________ [describe any existing violations or issues, or state "None"];

WHEREAS, Owner desires that Tenant vacate the Property before the natural termination of the Lease or before proceeding with formal eviction proceedings; and

WHEREAS, Tenant is willing to voluntarily vacate the Property in exchange for financial consideration and other valuable consideration as set forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. VOLUNTARY TERMINATION OF TENANCY

1.1 Termination Date. Tenant agrees to completely vacate and surrender possession of the Property to Owner no later than ________________ [date] at ________________ [time] (hereinafter referred to as the "Vacate Date"). Time is of the essence with respect to this provision.

1.2 Definition of Vacating. For purposes of this Agreement, "vacating" means that Tenant and all occupants, whether authorized or unauthorized, shall permanently remove themselves and all personal belongings from the Property, leaving it in the condition required under Section 3 of this Agreement.

1.3 Superseding Effect. This Agreement supersedes and replaces any conflicting provisions of the Lease regarding termination, notice periods, and penalties for early termination. All other provisions of the Lease not in conflict with this Agreement shall remain in full force and effect until the Vacate Date.

1.4 Irrevocability. Tenant's agreement to vacate is irrevocable upon execution of this Agreement, subject only to Owner's full performance of payment obligations as set forth herein.

2. FINANCIAL CONSIDERATION

2.1 Cash Payment Amount. In consideration for Tenant's agreement to voluntarily vacate the Property by the Vacate Date and in the condition specified herein, Owner agrees to pay Tenant the sum of ________________ Dollars ($________________) (hereinafter referred to as the "Cash Payment").

2.2 Payment Method and Schedule. The Cash Payment shall be made in the form of ________________ [cash, certified check, money order, etc.] and shall be paid as follows: a. Initial Payment: $________________ to be paid upon execution of this Agreement. b. Final Payment: $________________ to be paid after the final inspection confirms compliance with all terms of this Agreement. [OR] Lump Sum Payment: The entire Cash Payment shall be made after the final inspection confirms compliance with all terms of this Agreement.

2.3 Security Deposit Disposition. Tenant's security deposit in the amount of $________________, currently held by Owner pursuant to the Lease, shall be: a. Returned in full to Tenant within _____ days after the Vacate Date, separate from the Cash Payment; b. Partially returned with the following deductions: _________________________________________________; c. Applied toward the Cash Payment amount specified in Section 2.1; or d. Forfeited by Tenant as part of this Agreement.

2.4 Outstanding Rent Treatment. Any unpaid rent currently owed by Tenant in the amount of $________________ shall be: a. Forgiven in full upon Tenant's compliance with all terms of this Agreement; b. Partially forgiven, with Tenant remaining responsible for $________________; or c. Deducted from the Cash Payment amount specified in Section 2.1.

2.5 Tax Implications. Tenant acknowledges and agrees that the Cash Payment may have tax implications. Owner makes no representations regarding the tax consequences of this payment, and Tenant is advised to consult with a tax professional regarding any potential tax liability. Owner may report this payment to tax authorities as required by applicable law.

3. PROPERTY CONDITION REQUIREMENTS

3.1 Required Condition. Tenant agrees to leave the Property in "broom-clean" condition, which includes but is not limited to: a. All floors swept and mopped; b. All carpets vacuumed; c. All countertops, cabinets, appliances, fixtures, and surfaces wiped clean; d. All bathrooms cleaned, including toilets, sinks, showers, and bathtubs; e. All trash and debris removed from the Property, including storage areas, garages, patios, balconies, and yards; f. All personal belongings removed; g. No damage beyond normal wear and tear as defined by applicable state law; h. All lightbulbs functioning and in place; i. All smoke and carbon monoxide detectors functioning with working batteries; and j. No pest infestations caused by Tenant's lack of cleanliness or negligence.

3.2 Pre-Existing Conditions. The following conditions existing prior to this Agreement are acknowledged and will not affect Tenant's compliance with Section 3.1: _________________________________________________ [list pre-existing conditions or state "None"].

3.3 Prohibited Alterations. Tenant shall not make any alterations, improvements, or modifications to the Property between the execution of this Agreement and the Vacate Date without Owner's prior written consent.

3.4 Repair of Damage. Tenant shall repair any damage to the Property caused by Tenant, occupants, guests, or pets that exceeds normal wear and tear. If Tenant fails to make such repairs, the cost of necessary repairs may be deducted from the Cash Payment.

4. VACATE PROCEDURES

4.1 Key Return Protocol. Tenant shall return all keys, access cards, garage door openers, mail keys, and other access devices (collectively, "Keys") to Owner or Owner's representative at the time of the final inspection. Specifically, Tenant must return: a. _____ unit key(s) b. _____ mailbox key(s) c. _____ garage door opener(s) d. _____ access card(s) e. _____ other: _________________________________________________

4.2 Utilities Management. Tenant shall: a. Maintain all utility services in Tenant's name until the Vacate Date; b. Provide Owner with proof of final utility payments or arrangements for final billing; c. Not terminate any utility services prior to the Vacate Date; and d. Notify utility providers of the termination date and provide a forwarding address for final bills.

4.3 Forwarding Address. Tenant shall provide Owner with a forwarding address for the return of any security deposit and for any future correspondence: _________________________________________________.

4.4 Abandoned Property. Any personal property remaining on the Property after the Vacate Date shall be considered abandoned and may be disposed of by Owner in accordance with applicable state law. Tenant expressly waives any right to reclaim abandoned property and any claims related to such property, subject to mandatory state law provisions regarding the handling of abandoned tenant property.

5. INSPECTION AND PAYMENT PROCEDURES

5.1 Final Inspection Process. A final inspection of the Property shall be conducted on ________________ [date] at ________________ [time]. Both Owner and Tenant, or their authorized representatives, shall be present during this inspection. The inspection shall verify: a. Tenant has completely vacated the Property; b. The Property is in the condition required by Section 3 of this Agreement; c. All Keys have been returned; and d. All other terms of this Agreement have been satisfied.

5.2 Inspection Documentation. During the final inspection, Owner shall complete a written inspection report documenting the condition of the Property, which shall be signed by both Parties. Photographs or video recordings may be taken to document the Property's condition.

5.3 Payment Delivery Terms. The Cash Payment (or final installment thereof) shall be delivered to Tenant: a. Immediately following the successful completion of the final inspection; b. Within _____ business days after verification that all conditions of this Agreement have been met; or c. As otherwise specified: _________________________________________________.

5.4 Condition Dispute Resolution. If a dispute arises regarding the condition of the Property or compliance with the terms of this Agreement: a. The Parties shall first attempt to resolve the dispute through good faith negotiation; b. If negotiation fails, the Parties may agree to engage a neutral third party, such as a professional property inspector, to evaluate the disputed conditions, with costs shared equally; c. If the dispute remains unresolved, either Party may pursue remedies available under applicable law, including mediation or arbitration if mutually agreed upon; and d. Any agreed-upon resolution shall be documented in writing and signed by both Parties.

6. LEGAL PROVISIONS

6.1 Release of Claims. Upon full performance of this Agreement by both Parties: a. Tenant releases and forever discharges Owner, its agents, employees, successors, and assigns from any and all claims, demands, actions, causes of action, damages, liabilities, costs, and expenses of every kind and nature, whether known or unknown, suspected or unsuspected, disclosed or undisclosed, arising out of or in any way related to the Lease, the tenancy, the condition of the Property, or any other aspect of the landlord-tenant relationship up to and including the date of this Agreement, except for the obligations created by this Agreement; b. Owner releases and forever discharges Tenant from any and all claims, demands, actions, causes of action, damages, liabilities, costs, and expenses of every kind and nature, whether known or unknown, suspected or unsuspected, disclosed or undisclosed, arising out of or in any way related to the Lease, the tenancy, or any other aspect of the landlord-tenant relationship up to and including the date of this Agreement, except for the obligations created by this Agreement; c. This mutual release specifically includes, but is not limited to, claims for unpaid rent (except as otherwise provided in Section 2.4), property damage (except as otherwise provided in Section 3), security deposit disputes (except as otherwise provided in Section 2.3), and any claims related to the early termination of the Lease.

6.2 Waiver of Civil Code Section 1542. The Parties expressly waive the provisions of California Civil Code Section 1542 (or similar provisions in other states), which provides: "A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party."

6.3 Non-Compliance Consequences. If Tenant fails to vacate the Property by the Vacate Date or fails to leave the Property in the required condition: a. Tenant shall forfeit any portion of the Cash Payment already received and shall not be entitled to receive any unpaid portion; b. Owner may immediately proceed with formal eviction proceedings or other legal remedies available under applicable law; c. Tenant shall be liable for holdover rent at the rate of $________ per day for each day Tenant remains in possession after the Vacate Date; d. Tenant shall be responsible for all costs and attorney's fees incurred by Owner in enforcing this Agreement or pursuing eviction; and e. This Agreement shall not be construed as a waiver of Owner's right to pursue any other remedies available under the Lease or applicable law.

6.4 Confidentiality Clause. The Parties agree to keep the terms and conditions of this Agreement strictly confidential and shall not disclose such information to any third party except as required by law, for tax purposes, or to professional advisors who are bound by confidentiality obligations. This provision shall survive the termination of this Agreement.

6.5 Governing Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of ________________, without giving effect to any choice of law or conflict of law provisions. Any legal actions arising out of or relating to this Agreement shall be filed and adjudicated exclusively in the courts located in ________________ County, State of ________________.

6.6 Severability Clause. If any provision of this Agreement, or any portion thereof, is held to be invalid, illegal, void, or unenforceable by any court or tribunal of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect to the maximum extent permitted by law. The parties agree that any such invalid, illegal, void, or unenforceable provision shall be modified and limited in its effect to the extent necessary to cause it to be enforceable, or if such modification is not possible, shall be deemed severed from this Agreement. In such event, the parties shall negotiate in good faith to replace any invalid, illegal, void, or unenforceable provision with a valid, legal, and enforceable provision that corresponds as closely as possible to the parties' original intent and economic expectations. The invalidity or unenforceability of any provision in one jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.

6.7 Entire Agreement Clause. This Agreement constitutes the entire understanding and agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, inducements, and conditions, express or implied, oral or written, except as specifically referenced and incorporated herein. The Parties acknowledge and agree that no representations, warranties, or promises have been made that are not reflected in this Agreement.

6.8 No Admission of Wrongdoing. This Agreement and the negotiations leading to its execution shall not be construed as an admission of liability, wrongdoing, or violation of any law, rule, regulation, or contractual right by either Party. Both Parties expressly deny any such liability, wrongdoing, or violation.

6.9 Modification Requirements. No modification, amendment, supplement to, or waiver of this Agreement or any of its provisions shall be binding upon the Parties unless made in writing and signed by both Parties. No oral statements, representations, or conduct of either Party shall modify, amend, supplement, or waive any provision of this Agreement.

6.10 Attorney Review Acknowledgment. The Parties acknowledge that they have been advised of their right to consult with an attorney of their choosing prior to signing this Agreement and have either done so or have voluntarily elected not to do so. The Parties further acknowledge that they have read this Agreement in its entirety, understand its terms and conditions, and enter into it voluntarily.

6.11 Voluntary Agreement Acknowledgment. The Parties acknowledge and agree that they are entering into this Agreement voluntarily and without coercion or duress, after having had sufficient time to consider its terms and implications. Each Party acknowledges that it has not relied upon any representations, promises, or agreements of any kind made to them in connection with their decision to accept this Agreement, except for those set forth in this Agreement.

6.12 Counterparts and Electronic Signatures. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Electronic signatures, digital signatures, facsimile signatures, or signatures transmitted by electronic mail in PDF format shall be deemed original signatures for all purposes.

6.13 Force Majeure. Neither Party shall be liable for any failure or delay in performing its obligations under this Agreement due to acts of God, war, terrorism, pandemic, epidemic, government restrictions, or other circumstances beyond the reasonable control of the Party affected. In such event, the affected Party shall provide prompt notice to the other Party and shall use reasonable efforts to overcome the effects of the force majeure event as soon as possible.

6.14 Notices. All notices required under this Agreement shall be in writing and shall be deemed delivered when: a. Personally delivered; b. Deposited in the United States mail, postage prepaid, certified or registered mail, return receipt requested; c. Delivered by a nationally recognized overnight courier service; or d. Sent by email with confirmation of receipt, provided that a copy is also sent by one of the methods above within three (3) business days.

Notices shall be addressed as follows:

To Owner: Name: _________________________________________________ Address: _________________________________________________ Email: _________________________________________________ Phone: _________________________________________________

To Tenant: Name: _________________________________________________ Address: _________________________________________________ Email: _________________________________________________ Phone: _________________________________________________

6.15 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, executors, administrators, legal representatives, successors, and permitted assigns.

6.16 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

6.17 Further Assurances. Each Party agrees to execute such additional documents and take such additional actions as may be reasonably necessary or desirable to carry out the purposes and intent of this Agreement.

7. SIGNATURES

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

OWNER:

Signature: ________________________________

Print Name: ______________________________

Title (if applicable): _______________________

Date: ___________________________________

TENANT(S):

Signature: ________________________________

Print Name: ______________________________

Date: ___________________________________

Signature: ________________________________

Print Name: ______________________________

Date: ___________________________________

Signature: ________________________________

Print Name: ______________________________

Date: ___________________________________

Illinois Requirements for Cash for Keys Agreement

Illinois Security Deposit Return (765 ILCS 710)
The agreement must comply with the Illinois Security Deposit Return Act (765 ILCS 710), which requires landlords to return security deposits within 30-45 days after a tenant vacates the property, depending on whether there are deductions.
Chicago Residential Landlord and Tenant Ordinance (Chicago Municipal Code Chapter 5-12)
For properties in Chicago, the agreement must comply with the Chicago Residential Landlord and Tenant Ordinance, which provides additional protections for tenants regarding security deposits, notices, and other landlord-tenant matters.
Illinois Forcible Entry and Detainer Act (735 ILCS 5/9-101 et seq.)
The agreement should acknowledge that it serves as an alternative to the formal eviction process outlined in the Illinois Forcible Entry and Detainer Act, which governs eviction procedures in Illinois.
Fair Housing Act Compliance (42 U.S.C. § 3601-3619)
The agreement must comply with the federal Fair Housing Act, which prohibits discrimination based on race, color, religion, sex, disability, familial status, or national origin in housing transactions.
Illinois Human Rights Act (775 ILCS 5/3-101 et seq.)
The agreement must comply with the Illinois Human Rights Act, which prohibits discrimination in real estate transactions based on protected characteristics, including those covered by federal law plus additional state protections.
Contract Law Requirements (Illinois Common Law)
The agreement must meet basic contract law requirements including offer, acceptance, consideration, legal capacity, and lawful purpose to be legally enforceable under Illinois contract law.
Voluntary Agreement Provision (Illinois Common Law)
The agreement must clearly state that the tenant is entering into the agreement voluntarily and not under duress, coercion, or undue influence, in accordance with Illinois contract law principles.
Consideration Disclosure (Illinois Common Law)
The agreement must clearly specify the amount of the cash payment being offered to the tenant and any conditions attached to receiving the payment, in accordance with Illinois contract law.
Release of Claims Provision (Illinois Common Law)
The agreement should include a provision where the tenant releases the landlord from claims related to the tenancy, which must comply with Illinois law regarding releases and waivers.
Property Condition Requirements (765 ILCS 705)
The agreement should specify the condition in which the tenant must leave the property, in accordance with Illinois law regarding waste and property damage.
Tax Implications Disclosure (26 U.S.C. § 61)
The agreement should include a disclosure that the cash payment may have tax implications for the tenant, in compliance with federal tax reporting requirements.
Illinois Landlord Retaliation Prohibition (765 ILCS 720)
The agreement must not be used as a form of retaliation against tenants who have exercised legal rights, as prohibited by Illinois law protecting tenants from retaliatory actions.
Illinois Rent Control Preemption Act (50 ILCS 825/5)
The agreement must acknowledge that Illinois prohibits municipalities from enacting rent control ordinances, which may affect how the agreement addresses rental amounts and payments.
Personal Property Abandonment (765 ILCS 1025)
The agreement should address the handling of any personal property left behind by the tenant, in accordance with Illinois law regarding abandoned property.
Illinois Statute of Frauds (740 ILCS 80/2)
If the agreement involves real estate or will not be performed within one year, it must be in writing to comply with the Illinois Statute of Frauds.
Illinois Consumer Fraud Act (815 ILCS 505)
The agreement must not contain deceptive or unfair terms that would violate the Illinois Consumer Fraud and Deceptive Business Practices Act.
Utilities Transfer Provision (220 ILCS 5)
The agreement should address the transfer or termination of utility services, in compliance with Illinois utility regulations and the Illinois Public Utilities Act.
Key Return Provision (Illinois Common Law)
The agreement should specify requirements for returning all keys and access devices, in accordance with Illinois property law regarding possession and access.
Severability Clause (Illinois Common Law)
The agreement should include a severability clause stating that if any provision is found to be invalid under Illinois law, the remainder of the agreement remains enforceable.
Attorney's Fees Provision (Illinois Common Law)
Any provision regarding attorney's fees must comply with Illinois law on fee-shifting in contracts, which generally allows such provisions if clearly stated and mutually applicable.

Frequently Asked Questions

What exactly is a Cash for Keys agreement?

What are the benefits for landlords?

What are the benefits for tenants?

How much money should be offered in a Cash for Keys agreement?

Is a Cash for Keys agreement legally enforceable?

What should be included in a Cash for Keys agreement?

As a tenant, what should I consider before accepting a Cash for Keys offer?

As a landlord selling a property, when should I consider offering Cash for Keys?

How should the money be handled in a Cash for Keys transaction?

What if the tenant takes the money but doesn't leave?

Introduction

Key Things to Know

Key decisions before you file

Customize your Cash for Keys Agreement Template with DocDraft

CASH FOR KEYS AGREEMENT

PROPERTY VACATION AND SETTLEMENT AGREEMENT

RECITALS

1. VOLUNTARY TERMINATION OF TENANCY

2. FINANCIAL CONSIDERATION

3. PROPERTY CONDITION REQUIREMENTS

4. VACATE PROCEDURES

5. INSPECTION AND PAYMENT PROCEDURES

6. LEGAL PROVISIONS

7. SIGNATURES

Illinois Requirements for Cash for Keys Agreement

Illinois Security Deposit Return (765 ILCS 710)

Chicago Residential Landlord and Tenant Ordinance (Chicago Municipal Code Chapter 5-12)

Illinois Forcible Entry and Detainer Act (735 ILCS 5/9-101 et seq.)

Fair Housing Act Compliance (42 U.S.C. § 3601-3619)

Illinois Human Rights Act (775 ILCS 5/3-101 et seq.)

Contract Law Requirements (Illinois Common Law)

Voluntary Agreement Provision (Illinois Common Law)

Consideration Disclosure (Illinois Common Law)

Release of Claims Provision (Illinois Common Law)

Property Condition Requirements (765 ILCS 705)

Tax Implications Disclosure (26 U.S.C. § 61)

Illinois Landlord Retaliation Prohibition (765 ILCS 720)

Illinois Rent Control Preemption Act (50 ILCS 825/5)

Personal Property Abandonment (765 ILCS 1025)

Illinois Statute of Frauds (740 ILCS 80/2)

Illinois Consumer Fraud Act (815 ILCS 505)

Utilities Transfer Provision (220 ILCS 5)

Key Return Provision (Illinois Common Law)

Severability Clause (Illinois Common Law)

Attorney's Fees Provision (Illinois Common Law)

Frequently Asked Questions