Lease Essentials
As widely recognized, current housing prices have compelled a significant portion of society to rent, and this trend is steadily increasing. Renting a residence is often easier and, in many cases, less costly. For this reason, greater attention to tenancy has become inevitable. In view of this reality, awareness of lease regulations and the legal relationship between landlord and tenant is essential. In the event of disputes, it is advisable to seek advice from a lawyer specializing in real estate and property matters.
In lease relationships, after understanding the concepts of the landlord, meaning the person who owns the leased property or its usufruct, and the tenant, meaning the person who occupies the leased property in return for payment of rent under specified terms, it is also necessary to become familiar with other related legal concepts and regulations.
Important Points in Drafting a Lease Agreement
At the outset, a handwritten agreement is a document that records the parties’ obligations toward each other. Both parties must sign it and are bound by its contents. The presence of two witnesses at the time of execution is essential. This agreement is usually prepared in three separate copies, which are kept by the parties and the real estate agency. Although handwritten, such an agreement may be relied upon in court in the event of disputes between landlord and tenant.
In contrast, a formal contract is executed and registered with a notary public on official forms, and it is assigned a tracking code.
What Is a Tracking Code?
Pursuant to a regulation approved by the Council of Ministers in 2008, all transactions conducted by real estate agencies must be registered in the national real estate and transaction registration system. This requirement serves two important purposes. First, it minimizes errors and irregularities in transactions. Second, it enables national statistical authorities to access comprehensive data efficiently. Each registered transaction is assigned a unique tracking code, which significantly reduces the risk of disputes and fraud.
Common Issues Between Landlord and Tenant
Cost of Repairs
If repairs are minor and consumable, such as replacing light bulbs or evaporative cooler pads, the tenant is responsible for the costs. However, if the building requires major repairs, such as repainting walls or repairing heating and cooling systems, the landlord is obligated to bear those expenses.
Adjustment of Rent
The landlord may not increase the rent during the term of the lease. Any adjustment may be made only after the contract expires. If a dispute arises over rent increases, the parties may refer the dispute to the dispute resolution councils to reach a fair and lawful agreement.
Payment of Building Maintenance Charges
Since maintenance charges cover consumable expenses and common building costs, the tenant, as the user of the facilities, is required to pay them.
Receipts for Rent Payments
Although it may appear to reflect distrust, obtaining receipts for rent payments is extremely important. If the landlord later alleges non-payment, the tenant may rely on such receipts as evidence.
Death of One of the Parties
Pursuant to Article 497 of the Civil Code, a lease contract is a binding agreement, meaning that until the expiration of its term, the parties are obligated to observe its provisions. If one of the parties dies before the end of the term, the contract generally remains valid. However, it becomes void only in limited circumstances, including the following:
- Condition of the landlord’s lifetime in the lease
If the contract expressly provides that it shall terminate upon the landlord’s death, it becomes void in that event. This often arises where a third party is the true owner of the property. - Life settlement of ownership
If the owner has transferred the property under a life settlement arrangement, upon the owner’s death, the right of use passes to the beneficiary, and the lease contract becomes void.
Frequently Asked Questions About Lease Essentials
The landlord is the person who owns the property or its usufruct, and the tenant is the person who takes possession of the property in exchange for payment of rent.
A handwritten agreement records the parties' obligations and is valid when signed by both parties and two witnesses. A formal contract is executed and registered with a notary public, and a tracking code is issued.
The landlord must pay for major repairs, such as repainting or repairs to heating and cooling systems. Minor consumable repairs are the tenant's responsibility.
No. Rent may not be increased during the contract term. Any change may only be made after expiration. In the event of disagreement, dispute resolution councils may assist the parties.
The lease remains binding until its term ends. It becomes void only in limited cases, such as where the contract is expressly conditioned on the landlord’s lifetime or where the property is subject to a life settlement arrangement. Who are the landlord and the tenant?
What is the difference between a handwritten agreement and a formal contract?
Which costs must the landlord pay?
May the landlord increase the rent during the lease term?
What happens to the lease if one party dies?
