3 Legal Advices Before Entering into a Lease Agreement

3 Legal Advices Before Entering into a Lease Agreement

Lawyers suggest not to rush to sign leases. It is necessary to first assess not only the location of the apartment, its installation, operating costs, or the year in which the house was built. No less important legal aspects are the content and form of the contract, the rights and obligations of the lessor and the lessee. Potential risks must be assessed, and it must be agreed in advance how those risks can be avoided.

A Lease Agreement Is a Necessity

The agreements do not always have to be made in writing, but only written commitments by the parties will help to avoid or resolve disputes. First, there are two types of agreements: a simple lease agreement and a residential lease agreement. First of all, the forms of these agreements are different. The law stipulates that a simple lease agreement for a term longer than one year must be made in writing, and the form of the residential lease agreement varies depending on the persons concluding it and the lease term. If the premises are rented by the state, municipality or legal person, a written agreement must be concluded, and open-ended lease agreements between natural persons may also be concluded orally. A fixed-term lease of a dwelling, regardless of the parties to it, must be concluded in writing.

The Agreement Must Be Comprehensive

It is important to properly specify the object in the lease agreement. It is obligatory to mention the address of the rented premises, the number of rooms and other premises, the total area, the equipment that is already installed in the premises, the amount of the rental fee, as well as the procedure for payment of this fee, deadlines, and the procedure for payment for utilities. The rent is also determined by agreement of the parties and can be recalculated, but not more than once a year.

The landlord undertakes to hand over the object of the lease to the lessee, to ensure its suitability for living and the condition of the dwelling that meets all the requirements at the time of the transfer and for the entire term of the lease. The tenant undertakes to pay the rent, to properly manage and use the dwelling, and to return it to the condition it was in at the time of the transfer, subject to normal depreciation.

Substantial Breaches of the Agreement

Terminating a residential lease agreement is easier for a tenant than for a landlord. The lessee has the right to terminate both fixed-term and open-ended contracts by giving a written notice to the landlord one month in advance. To terminate an open-ended lease, the landlord must give a written notice to the landlord six months in advance, and the fixed-term lease may be terminated only in the event of a substantial breach of contract and only after the decision of a court.

What constitutes a material breach of contract? The tenant must not pay rent or utility bills for more than 3 months. The tenant, his family members or other persons living with him shall destroy or damage the dwelling or use it for other purposes. Persons misbehaving make it impossible for people around them to live. In the event of at least one of these breaches, the landlord has the right to sue for breach of the fixed-term lease.

Substantial Breaches of the Agreement
Substantial Breaches of the Agreement