What is Rent Agreement? Precautions needed while renting agreement.
A rent agreement or lease agreement is a legal agreement which indicates that both the parties agree to a specific set of clauses in order to give a property for residential or commercial purposes. This agreement has everything written in the document and both the parties must abide to it! It also proves as a legal proof of residence and as an income statement. It is for legal purposes and it is a protection against any type of exploitation. It is an essential part of every real estate deal. Many people think that it is okay and correct to not have rent agreement or a lease agreement. But this thought must be wiped off as it is wrong legally as well as morally. The presence of rent agreement or lease agreement assures that all the means are hundred percent legal and one cannot misuse or exploit the other party. But there must be several precautions which must be taken while renting agreement. Some of the precautions are:-
- Mention rent and duration of rent: – one should never forget to mention the rent amount and the duration for the rent which is paid. If the monthly rent is 15000, then it must be clearly mentioned that the rent is 15000 per month for a period of 6 months! This legally binds both the parties to follow this clause and does not leave any doubt for the rent.
- The procedure to break or leave the agreement in between: – it is always beneficial to have a clause which specifically mentions how a person can leave or break the agreement in case of any situation in which one has to do so because of some or the other reasons. This also avoids confusion and makes both the parties well aware of the consequences.
- The accurate details of both the parties: – the agreement should have accurate and up to date details of both the parties. This will make sure that both of them are accountable in case of any mishap or any incident. Both the parties will be legally traceable and there would be no chance of scamming or fooling the other party. This will also make sure that both the parties abide by the agreement and do not think of misusing the rights and properties they are entitled to. The lease agreement also makes sure that the property is treated very well and the properties are not misused.
- Retain extra copies: – retaining extra copies of this precious document would prove very useful in case the document gets misplaced, lost or forgotten somewhere and is unavailable when needed. These copies will also serve as a backup and would come to rescue when needed. This will also act as a reserve when the original is lost. One must never lose the original and it is not so good if it gets lost. People only believe in the original and would not adhere to the unoriginal one.
Thus, it is very important to make a rent agreement or a lease agreement. One must follow the above precautions to make sure that the deal does not take any wrong turn and there is no way one would misuse anyone’s kindness and deal. Therefore, it may be done without fail and there must be many copies saved which will act as a savior when needed. So invest for the best in real estate and make sure that every deal is backed by a lease or rent agreement!