What is a Lease?
A legal contract
A lease is defined as an agreement for the transfer of rights of possession of a property from one person to another for a certain period of time. The person who gets the rights of the property is called the tenant or lessee. The person granting it is referred as landlord or lessor. The renting arrangement between the two parties is called as tenancy. The period of time for the tenancy is called as the term of the contract. The tenant enjoys
full rights of possession of the property. The landlord cannot interfere with the tenant and will be considered as unlawful activity if he does so. The tenant can also sub-contract a property to another person. However the main owner of the property retains the right to allow such subcontracts for the primary tenant. There are different types of tenancy depending on the term of the document. If the lease is in terms of years then it is referred as Fixed-term tenancy. The contract can be Periodic tenancy if the term is in terms of months or weeks. The term of a “tenancy at will” depends on both the tenant and the landlord. The tenancy can be terminated by both parties after a issuing a notice. Tenancy at sufferance will allow the tenant rights after the expiration of lease till landlord evicts.
Tips before signing a lease agreement
There are certain pointers that may be followed before signing the legal agreement in Canada by the tenant to avoid unnecessary complications. The term of the document should be agreeable to both tenant and the landlord. The rent payable for the license is also decided before signing the agreement. The rent may be a Gross Lease or Net Lease. Gross agreement requires a fixed monthly payment
by the tenant to the landlord. The tenant may be required to pay the taxes
on the property in case of a net type of agreement. The tenant may also pay a portion of his income generated in a commercial property. This kind of legal document is called a percentage agreement. The rent may also increase as the contract progresses. The tenant must negotiate the escalation clause in the agreement document. The option to subcontract and renew the lease must also be mentioned in the agreement document. Insurance is also an important factor and care should be taken to insure the property properly in case of multiple tenants in the same property. The agreement should also specify who bears any cost of improvements
Real property association of Canada
REALpac is an association consisting of the leading forces in the real estate industry of Canada. Their main purpose is to guide the real estate industry and making it better in catering to the general public as well as the government. These organizations provide guidance in framing of rules and regulations regarding lease agreements. They also help in making property lease agreements for tenants and landlords. These organizations help in regulating the real estate industry in Canada. They are also involved in creating awareness among the public regarding real estate industry and help them in managing their resources better.Partnership income.