Wednesday, 16 March 2011

The Importance Of A Written Agreement When Subletting A Property

By Peter Sullivan


An agreement between owner and tenant is the basis for a property deal. Although by law it is possible to have a verbal agreement, it's incredibly hard to prove in the case of a dispute. An owner and tenant agreement defines the legal obligations of both parties. It includes the basic agreement, restriction and all other specifications and information about the deal.

Most owners who rent out or sublet their properties already have a contract ready for a potential tenant to review. After reviewing the contract, the tenant will need to decide if the terms and conditions are acceptable or whether there are points that need to be discussed and negotiated.

The written agreement usually contains the rental fee and its payment method, amount of deposit and its terms, the duration of the rental period, rent increases, conditions for termination of the agreement, and policy on dispute resolution.

Some owners include stipulations on additional rules such as pets, parking, smoking, etc... Accountability on repairs, utilities due and other foreseeable matters should also be clearly stated on the document.

It is advisable to utilize a real estate attorney for contract matters. They can provide you with expert advice and ensure you cover all the important matters related to subletting your property.

Real estate attorneys are also useful as they know the laws of the state. An agreement must comply with state laws for it to be valid.

Once the tenant and the property owner has settled on the agreement, the document should be signed and date to make it legal. Both parties should keep a copy for future use.

In order to have a good working relationship between the owner and the tenant, it is important to be represented at the closing so no matters are missed. In addition, it is a good idea to come to the table with an open mind in order to be able to discuss anything either party wishes to discuss before finalizing the transaction. This will help both parties feel confident in the transaction and likely avoid contract problems down the line.




About the Author:



No comments: