NEW LEASES

New lease agreement

Buying a property can be a good investment. With ever increasing population the number of consumers and the real estate market are ever expanding. In this article, an important legal aspect has been brought into the light. Before we start discussion about it, you should have a brief knowledge about “lease”. Instead of spending large amount, you can take the property on lease. The lease is legal agreement between owner and the other party who wants to use property in return of paying regular rent.  The large debts in form of loans are required if you want to buy a property. These loans are for long terms and with lots of interest. If you are looking for an asset like a property for residence or business, you can choose the “lease” option. The benefit of lease is, you don’t have to pay one time large amount, which poises your financial planning at balance. It also allows you to gain access to the expensive assets which could have been financially too large to buy!

Before you agree onto the purchase agreement, you must keep few points in your mind. If adequate legal agreements are not ensured, you may get in trouble! There are chances that the seller may have given property on lease to other person before transfer of the title. In this situation you must make sure a “New Lease Agreement” between you and person using the property on lease. This agreement ensures that the legal right to receive rent has been transferred to you following transfer of title.

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NEW LEASES

If, prior to close of sale and transfer of title, seller enters into any new lease for an empty unit on the property, the lease shall provide $ ______________ ,or an amount that is equal
to the present rent, or as the parties may agree; and shall be for a term of not more than __________ years.

If such a lease is entered into by seller, purchaser shall accept title subject to it.