Anyone who has even been a party to a contract probably knows how important it is to make sure that the actual words in the contract comport with the agreement that was made. This is true in all different types of contracts, but the importance can be even higher in a contract involving real estate. Whether it is a lease or a purchasing agreement, a contract that involves unfavorable terms can lead to a real estate dispute down the road.
In cases involving both residential and commercial real estate, one party may lease the property to another party. A lease can cover anything from a one bedroom apartment to a giant industrial building. But, in almost every lease, there are certain terms that should be included in the real estate contract.
As always, the money to be exchanged is the highest priority. The monthly or yearly rent that will be due needs to be specified in the lease, as well as when those payments are due. In many cases a lease will also include details on what happens if the payment is late, or it will detail whether there is any form of grace period involving payments.
Besides the rent to be paid, perhaps the other most important term in a lease is the length of the agreement. Will the apartment be rented out for six months or one year? Will the warehouse be used by the tenant for one year or 10 years? Fixing the term of the lease is beneficial for both the tenant and the property owner: the tenant knows when a decision needs to be made on whether to renew the lease, and the property owner has a timeframe to work with if a new renter needs to be secured.
Source: FindLaw, “The Top Ten Lease Terms You Should Have When Renting,” Accessed Aug. 30, 2015