Rental agreements are essential.
However, many people never realize that they’re generally designed to protect the landlord.
If you are familiar with signing a lease you know just how long the document can be.
A typical lease will include a section for:
terms of your rental arrangement
procedures, rights of the tenant and landlord
rules and direction should problems arise etc.
Moreover,
Going through an entire document can be tedious and many people go directly to the signing part.
I have worked on many cases involving lease agreements and I feel obliged to share 3 legal considerations you should make before signing a lease agreement as a tenant.
Let's have a look at them.
1. A Lease Agreement is a Binding Contract
Many people overlook the fact that a lease is a binding contract between you (the tenant) and your landlord. Whatever the lease provides abides both parties and can be admissible in court as evidence. Like any other contract, a lease binds you to specific duties (like paying rent on time, keeping premises habitable etc.) and failure to honor the terms amounts to breach of duty.
Your landlord has a right to seek indemnification in court for any breach of duty. For example, if the agreement requires you to pay rent on a certain date (with penalties on delayed payments) failure to do so attracts penalties and your landlord can use it against you in a civil suit seeking compensation.
As a tenant, always remember that your lease is a binding contract. When used against you in a suit, it can be costly considering you pay penalties and the cost of the suit from your landlord.
2. Caveat Emptor Applies in Leases Too!
The legal maxim caveat emptor, which is Latin for ‘buyer beware’ places the burden on buyers to reasonably examine the property before purchase and take responsibility for its condition. The maxim particularly applies to property not covered under a strict warranty.
As a tenant, failure to read and understand the terms of your lease puts you in a vulnerable position to lose in case you are dissatisfied with a property you rent. Many people overlook hidden nuances and implications in leases, which can often come back to haunt them.
It is prudent that you read carefully and understand the terms of your lease agreement. In case of difficulties doing so, you can seek the services of a lawyer to help you interpret the agreement and make informed decisions.
3. You Can Terminate the Agreement, But at a Cost
Lease are designed to protect landlords in many ways. For example, the landlord reserves the right to terminate the contract indefinitely in case of a breach. As a tenant, you also reserve this right but in most cases, it comes with a cost or loss to you.
For example, if you take out a one-year lease and realize it is not ideal on halfway through the period, there is little chance to recover the rent balance from your landlord. Many leases include a section that secludes the landlord from refunding rental money in case of breach/termination of the contract.
Conclusion
With that in mind, it is essential and prudent to understand a lease agreement before signing. Remember a lease is a binding contract that your landlord can use against you in court. Moreover, ignoring the terms can be detrimental and amount to a loss to you as a tenant. You can avoid these legal pitfalls by being more diligent about the terms of your lease.
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