Tuesday 1 April 2014

Tenancy / Leasing Agreements

Before signing a tenancy agreement, both landlord and tenant should request sufficient information from each other in order to protect their own interests and to avoid future disputes. The landlord needs to make sure the tenant has the financial means to fulfill the tenancy agreement. The landlord should ask the tenant about his/her occupation, and when needed, the landlord can also ask the tenant to provide relevant proof regarding work, income and credit-worthiness. The tenant should check with the landlord or the Land Registry whether the property is mortgaged. If it is, the tenant should ask the landlord whether the bank has agreed for the property to be rented out. Generally, a mortgage agreement will specify that unless the landlord has obtained the bank’s approval, the mortgaged property cannot be rented out. If the landlord rent outs the property without the bank’s approval and then stops paying the mortgage, when the bank takes possession, the tenant will lost his/her right to continue renting the property. The tenant may also lose his/her deposit.

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