The most important element of the lease agreement is the subject of the lease. In most cases, that is real estate. However, in addition to the real estate and the item on the subject of the lease, the lease agreement contains other important elements, such as:
- Lease duration
If any of these “parts” are missing or cannot be determined in any of the legally prescribed ways, all elements of the Agreement call into question the validity of the Agreement itself.
There are also less important elements without which a real estate lease agreement can endure, and which in practice are often contracted separately; such as provisions relating to the deposit, damages, or liability for payment of bills relating to the leased item.
We introduce to you today the most important parts of the Lease Agreement.
1. What is regulated by the real estate lease agreement?
A lease agreement is a contract on the basis of which one contracting party (lessor) undertakes to hand over a certain thing to the other contracting party (lessee) for use.
The real estate lease agreement obliges a certain fee to be paid for the lease and that after a certain time, the thing from the lease (usually an apartment) is returned.
A team of Grading experts can also help you with more serious lease agreements.
It should also be noted that the Lease Agreement is a two-way legal transaction inter vivos (for life).
Special provisions of the lease agreement can be found in the Law on Housing, which is a lex specialis, and the provisions on the lease of agricultural land can be found in the Law on Agricultural Land, which is also a lex specialis and refers to agricultural land.
2. Subject of the lease
It is important for the subject of the lease that it should be a certain non-consumable item. Items that can be consumed during the first use cannot be the subject of a lease agreement.
The lease agreement obliges the lessor to hand over a certain thing to the lessee for use, while the other party undertakes to pay a certain rent for that.
Leasing of things means “use with the right to collect that thing’s fruits”, while in the case of a loan, the thing is given for use.
The important items of the lease agreement are that the thing that is the subject of the lease, has a leasehold and lease duration.
The subject of the lease in a broader sense can also be a certain property right (eg a license). The lease can have as a subject both the existing and the future things. It is important that the subject of the lease be a definable thing.
Verification of the contract on the lease of real estates such as an apartment, land, business premises, or vehicles is performed by a notary.
lease is a fee that the lessee gives to the lessor for the given thing and represents a certain property benefit, which usually refers to money.
However, instead of money, a lease can be agreed to be a delivery of a certain amount of goods and the mentioned “fruits” that the leased thing gives. For example, the percentage of work of a company, if the real estate is ceded to a company’s headquarters, etc.
4. Lease duration
The use of the leased item is performed for a certain period of time. When it expires, the lessee is obliged to return the used thing, that is, real estate, to the lessor, in the same form in which it was handed over, or in accordance with the parameters defined in the Contract.
The parties, that is, the lessor and the lessee determine the duration of the lease. If the duration of the lease is not determined by the contract, it is considered that the lease is concluded for an indefinite period.
An immovable lease agreement that is indefinite gives the right to both contractors to terminate the lease agreement within the notice period that suits them.
Most often, the duration of the agreement is observed and contracted on a calendar basis or looking at some future, certain circumstance, event, or need.
We hope that through these four items we have brought you closer to the most important parts of the Lease Agreement. The fact is that the documents of this type do not appear often in our country, nor that the state has a complete insight into how much real estate is rented without a contract.
What will be the fate of this issue remains to be seen in the future. Until further notice – Grading is here to advise, instruct and inform you about all the key things you need to know if you are planning to buy an apartment or decorate your home.