What is a lease

If you want to know that it is a lease of either a property, whether it is a home, a commercial premises and even a land, this article can help you, it is normal to sign a lease. This is a necessary formality, as it is the way for both parties to protect themselves.

This type of contract does not only affect movable property such as homes, but can be applied to other types of assets. For example, the rental of a vehicle, machinery or anything else that is needed.

Today we’re going to talk a little more about what a lease is and how it works. As it can not be otherwise if you need help you can contact us to be advised.

What is a lease?

A lease is simply a document that is signed between the tenant and the landlord. It is an agreement in which the owner of a good allows another person to use it. This person receives in exchange a payment in a certain frequency and time, it is difficult to define what is a lease, since there are many ways to do it.

The use of lease contracts has become quite common and is that this establishes the rules and conditions imposed by the owner. For this contract to be legal and binding, both parties must agree to each of its clauses. And the action of acceptance of these is the signing of the contract.

How long can a lease last?

The duration of a lease can be any, that is, it must be discussed and accepted by both parties. Some leases can last a year, others a few months, or just a few days.

There are even cases in which the duration established by both parties is several years. In any case, this will depend on what has been agreed between both parties and what is being leased. I hope this article helped you know more about what a lease is.

How is a lease fee established?

An important part of a lease is the fee that must be paid. To determine the same, the legislation can give a guide to how it should be calculated.

It is usually a percentage of the cost of the asset or property.

In any case, here too has a lot to do with the agreement they have reached between the parties.

At what point does a lease become effective?

In most cases, the lease begins when the landlord and tenant sign a document. However, the legislation on the leasing of commercial premises recognises that the contract may start before that time, for example, if you take possession of the premises before the contract is signed or if the landlord offers in writing the rental of a premises under very clear conditions and the offer is accepted.

Definitions of premises leases vary from city to province. Although there may be national legislation, there are cases where each territory lays down some complementary rules. In any case, the ideal is to inform yourself well before signing or making a lease.

It is important to be careful and understand when you are committing to a binding agreement. The common thing is that both the tenant and the landlord establish and agree on the points of the contract before preparing the formal contract.

There may be times when the two parties are “linked” at this point, but it will depend on the wording and actions of both parties. However, the most common is that this phase only serves to “approve” the commercial terms of the lease and will not be a binding agreement. From the moment that both the tenant and the tenant accept the conditions and sign the contract, it will be binding.