Agreement To Lease
Why not just sign a lease and be done with it? Why have an agreement to agree? Because the time is not yet right.
- Perhaps the house or commercial space in question is just being purchased.
- Perhaps an old tenant hasn't yet moved out.
- Perhaps the new tenant is still bound by a lease somewhere else.
- Perhaps this is a start-up business that is not quite ready to occupy a space.
- Perhaps it is an established business that needs time to get advertising in place to notify customers of the move.
The Agreement to lease takes pressure off both parties by giving them assurance that the lease is pending and will be signed on a specific date.
If you're a landlord looking for a tenant, you'll know that you have someone ready and willing to move into your property when it is ready for occupancy.
You've had time to do credit and background checks and know that you've got a good tenant.
You can stop advertising and stop worrying that the property will suddenly be vacant and your rental income will stop.
If you're a prospective tenant looking for just the right housing or the right space for your warehousing, office, or retail business, you'll relax knowing that you've secured the rental you want at a price and terms that you can live with.
You won't find yourself suddenly out in the cold with no place to go.
Yes, people do break promises and agreements.
But when both parties have signed an Agreement to Lease, and when the agreement sets forth a sum of money that the defaulting party will have to pay as liquidated damages, there is less danger of default.
Lastly, when the agreement is written no one has to depend upon memory.
The tenant can't come back later and say they thought the rent was $50 a month less and the landlord can't come back and say they thought it was $50 more.
No one has to rely on memory to decide which party is going to pay the sewer and water bill.
The maintenance agreement is clearly spelled out, too.
When it is time to draw the actual lease there won't be any new negotiating about the terms.
This agreement gives peace of mind to both parties, and since all promises are in writing, they are enforceable in a court of law, should the need arise.
A reliable Free form may be accessed on line from Free and Low Cost Real Estate Forms
- Perhaps the house or commercial space in question is just being purchased.
- Perhaps an old tenant hasn't yet moved out.
- Perhaps the new tenant is still bound by a lease somewhere else.
- Perhaps this is a start-up business that is not quite ready to occupy a space.
- Perhaps it is an established business that needs time to get advertising in place to notify customers of the move.
The Agreement to lease takes pressure off both parties by giving them assurance that the lease is pending and will be signed on a specific date.
If you're a landlord looking for a tenant, you'll know that you have someone ready and willing to move into your property when it is ready for occupancy.
You've had time to do credit and background checks and know that you've got a good tenant.
You can stop advertising and stop worrying that the property will suddenly be vacant and your rental income will stop.
If you're a prospective tenant looking for just the right housing or the right space for your warehousing, office, or retail business, you'll relax knowing that you've secured the rental you want at a price and terms that you can live with.
You won't find yourself suddenly out in the cold with no place to go.
Yes, people do break promises and agreements.
But when both parties have signed an Agreement to Lease, and when the agreement sets forth a sum of money that the defaulting party will have to pay as liquidated damages, there is less danger of default.
Lastly, when the agreement is written no one has to depend upon memory.
The tenant can't come back later and say they thought the rent was $50 a month less and the landlord can't come back and say they thought it was $50 more.
No one has to rely on memory to decide which party is going to pay the sewer and water bill.
The maintenance agreement is clearly spelled out, too.
When it is time to draw the actual lease there won't be any new negotiating about the terms.
This agreement gives peace of mind to both parties, and since all promises are in writing, they are enforceable in a court of law, should the need arise.
A reliable Free form may be accessed on line from Free and Low Cost Real Estate Forms
Source...