A lease agreement is a document which holds all the important terms and conditions when a person gives a property on lease to the other person. A lease agreement is formulated between a landowner who is known as the lessor and the tenants taking the property who is known as the lessee. These agreements can also be drafted between governments who are giving a land on lease to some people. Formation of lease agreement is important so that various terms which are agreed by both the parties, such as time period for giving the property and the amount that is to be given are agreed by both the parties.
It is important to note down all the terms and conditions while forming the agreement, as negligence of any such terms and condition could lead to a strict action to be taken by court. Important points that are to be followed while forming the lease agreement are as follows:
Name of the landlord who is giving the property on lease is to be mentioned and a list of all the tenants who are taking that property is also to be mentioned.
A detailed account of the land and property that are to be leased is to be written in the lease agreement.
The amount which a lessee has to pay to the landlord is to be mentioned in the agreement and along with it one needs to mention the time interval in which the amount is to be paid.
Further a list of all the items which a lessee is accountable for, is to be written in the agreement. A clause should also be mentioned that damage to any item on the property has to be repaired by the lessee, as it’s his responsibility.
Both the parties need to give their consent by signing the agreement.