What is a Lease Document

A lease document is prepared after the lessee and the owner of the property to be leased has reached some sort of mutual agreement. A lease document can be for both tangible and intangible property. The lease document is a formal document that contains all the terms and conditions for usage of the property as well as the duration within which the property is to be used. The rules and regulations must be clearly mentioned. Leasing can be done of anything, from apartments to computer programs. The owner can also terminate the lease document before the expiry date and the lessee can also withdraw from the contract if he or she wishes. There are certain pointers that should be followed for constructing the legal document:

  • The names of the owner (lessor) and the tenant (lessee) must be written clearly in the document.
  • The description of the premise or asset to be rented must also be mentioned.
  • The payment terms should also be explicitly stated. Different owners prefer different modes of payment. This is done to avoid confusion.
  • The duration within which the asset is to be used should be clearly specified. Clauses for negotiations should also be mentioned.
  • The details of the security deposit made by the tenant should also be mentioned along with provisions of return.
  • There should be mention of legal consequences in case of property damage and in case the lessee refuses to leave the lease.
  • The insurance details and tax information should be specified in the document.
  • Provisions for subletting by the tenant can also be made in the document.
  • In case of hiring of an attorney for making the lease document, separate charges for fees should also be included.

A lease document should be carefully constructed in the event of any legal dispute.

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