Posts Tagged: lease

Land Law / Tenancies — No Comments
1
Oct 10

Apartment Lease Form

An agreement between the landlord and the tenant for the occupation of an apartment exceeding 3 years is also known as an apartment lease. The apartment lease form or agreement stipulates the rights and obligations of both partiesin their legally binding relationship. Usually and expectedly, the apartment lease form would contain details about the parties, the subject premises, the consideration (lease), period of lease and purpose of lease.

The apartment lease form has to be executed by both parties and advisably, be witnessed. Some jurisdictions require the lease to be stamped whilst some would require that it be lodged with the land office concerned. Different states and countries have different laws regarding various aspects or finer details of the leasing process.

The apartment lease form needs to be as detailed as possible to ensure that there are no ambiguities in establishing the rights and obligations of the parties to the agreement. It should include a proper identity of the lessor and the lessee and their contact information. Next, the apartment to be occupied must also be sufficiently identified and if furnitures and fittings are part of the deal, the inventories should also be listed.

An apartment lease would be void if it does not state the date of commencement of the lease and the duration of the lease. Good drafting practice would also expect a provision to state what happens upon expiry of the lease – whether there be an automatic extension of lease or not.

Provisions on the lease payable and the deposits upfront should also be indicated. Deposits include utility deposits and security deposits. Most apartment lease forms would indicate that the deposits may not be used to set off rentals payable until and unless there is a breach and termination of the lease.

Landlords or Lessors also need to be mindful to incorporate the Deed of Mutual Covenants into the lease agreement to ensure that their tenants or lessees observe and abide with the terms indicated in the Deed of Mutual Covenants. Many lessors make the mistake of not incorporating the terms of the Deed of Mutual Covenants resulting in the lessors being liable for the misdeeds of their lessees.

Tenancies — No Comments
18
Aug 10

Difference Between a Lease and a Tenancy

Part 15 of the National Land Code 1965 lays down the law in respect of Leases and Tenancies. In a nutshell, a lease is recognised as a term which exceeds 3 years and requires registration. Leases which are for a term lesser than 3 years are usually and commonly called Tenancies and do not require registration.

Whilst the minimum number of years required for a lease is 3, there is a maximum number of years for which a lease may be so granted. Where the lease is for the whole of any alienated land, the maximum number of years allowed is 99 years. If the lease relates to part of a land only, then the maximum number of years for which a lease may be granted is 30 years.

Every lease must be granted by an instrument in Form 15A. For tenancies, however, the Tenancy Agreement – duly executed and stamped suffices to show the intention and agreement between the Landlord and the Tenant.

Sometimes, parties may prefer to enter into Tenancy Agreements so that shorter terms are created which allows renegotiation of terms such as rental chargeable on a periodic basis. At the same time, the parties need not go through the hassles of having to register a lease should they prefer a longer term. On the other hand, Lease Agreements give the parties a certainty of their long term commitment with one another. The lessor knows that he will be expecting a steady flow of lease income for a long term and likewise, the lessee knows how much he needs to pay for the long term and is thus, able to plan his cashflow accordingly.

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