The importance of signing the lease should not be neglected. Too often mistakes are made during the drafting of the lease which poses significant problems for the future.
Today we are going to talk about three of these issues that we regularly have the opportunity to see in our interactions with rental property owners.
- Errors in the legal designation of the parties
Often, mistakes are made on behalf of the parties, i.e., the tenant and the landlord. Make sure you register the correct name as a landlord. Sometimes the landlord may be different from the owner, but this situation rarely arises.
However, we often see the name of the person in charge or the principal shareholder written in the designation on the landlord’s lease. You should know that at this time the landlord could well be the individual rather than the company, with tax and legal impacts.
If the tenant files a legal claim, he will be able to do so against the entity designated in the lease which may not have the desired result. We see the same error at the tenant level, where multiple errors creep into the name. Sometimes the names are more difficult to write, so much so that even the tenant does not detect the error. At the end of the day, if you have to obtain and execute a decision against the tenant this mistake may make the task very difficult.
- The error regarding the duration of the lease
There are two boxes next to each other on the lease. On the left you have the start and end date of the fixed-term lease. On the right you have the start date of the indefinite lease.
Regularly, we see landlords fill in the dates for the fixed term, and also enter the start date of the lease that is in the section of the indefinite lease creating a situation that is regrettably ambiguous.
- Initials that are missing in some provisions
In several places in the lease initials must be written.
Often, one or more of the signatories forget to put the required initials, which in some cases has led to the impossibility of claiming the intended clause.