Is a signed lease agreement necessary?

A verbal lease agreement depends almost entirely on the relationship between the parties to the agreement being honoured. I have found that many clients seek assistance to enforce the verbal lease agreement or to obtain a written contract when the relationship falls apart or begins to take strain. However, this is of course problematic on many levels, not least that the tenant is usually no longer eager or willing to sign an agreement at that stage, because by then they are enjoying the advantages of the situation.

My suggestion is, therefore, to insist on a formal, signed agreement early on in the contractual relationship with any tenant, including children or other family members if rent is payable by them. It is preferable to have this in place at the outset and before occupation. If the tenant already has occupation of the premises, then I would suggest that the landlord prioritises formalising the contract by putting in place the signed agreement as soon as possible. It is easier to enforce your rights as a landlord, should you need to, if a signed agreement exists. A legal demand for payment is much easier to make on the basis of a formal breach of agreement.

Furthermore, if and when a lease agreement is taken to court, on the basis of breach or non-performance for example, it matters a great deal as to how the lease agreement is worded. The contract or agreement needs to comply with statutory requirements and formalities. We often see many copy-and-paste templates circulating that would be more problematic than useful in court. It makes better financial sense in the long run, and offers peace of mind, to seek legal advice if you plan on leasing or renting out property, and to invest in the drafting of a proper agreement

Disclaimer: the information contained in this article is educational only and not intended as legal advice. You should contact an Attorney for advice and assistance pertaining to your specific circumstances.