Lease is a mutual contract where 1 party borrows Property, Products, Services, etc.for a specific period of time from the other party who is the owner. In other words, Property, Products, Services , etc are been given on rent on a contract basis for specific period of time along with charging Interest amount from the buyer for which he would be using the Products or Services.
The terms involved in Lease contract are leasehold, rental agreement, contractual documents. An example to share with all for lease homework answers to make the concept clear.
If A has borrowed some mechanical equipment from B for some commercial purpose, for the period of 6 months and A has paid some amount to B for the usage of equipment. This process is known as Lease.
The party who owns the property is known as lessor, and the party who borrows is known as lessee.
Well! This is just not the end. For few learners, including me, this concept seems to be little less interesting and sleepy. I am sure most of you are juggling with the same thoughts. However, it is not so complicated to understand. A little bit of determination is required, and we will know what you are supposed to. Let us learn some lease homework answers.
What can be leased?
As per the law no- 6361, movable properties like Textile , Construction or any other kind of Machinery, Equipment, Transportation Vehicles, Medical Devices, Electronics, Optical Equipment, Office Equipment, Specialized Repairing products and immovable properties like Land, Property, Air, Heavy Duty, Brand name.etc can be given and taken for Lease.
Do not consider Leave and License Agreement and Lease Agreement, one and the same thing. As per the section 52 of the Indian Easements Act 1882, License document just allows the licensee to use the products if any or occupy the premises for a specific period of time. However, as per section 105, the transfer of Property Act, 1882, the lessor and lessee sign a mutual agreement of the usage of the products and payment, with the terms and condition for clearing off the Interest payment too.
Steps involved in lease agreement are:
- Proper Introduction of both the parties.
- Getting the lease agreement registered. (It becomes permanent public record after registering, and right to title or interest can be acquired only if the agreement or deed is registered.)
- Paying stamp duty.
- Additional municipal taxes.
- Moreover, the income tax also has to be paid from the income arrived for subletting the leased property to another lessee.
Folks, especially for lease home answers, please note that property can be rented out in market if in case it is vacant for 12 months. Also note that the Landlord can ask for three months rent as deposit, not more than that.
So, isn’t it interesting to know about these simple yet important facts? But I feel, this is just not enough to know about concept. We need to know more to score more.
Little factual information to know more about the lease agreement:
- The detailed personal information of Leaser and lease is mentioned on the Lease Agreement as per the security reasons.
- The duration of the lease is mentioned accurately on the deed. E.g.: 1 year 3
- It is immovable property, the details of square foot (area) is mentioned in detail.
- Information on Insurance, taxes and other payable factors are mentioned too on the license.
- As mentioned above, security deposit is also taken from the lessee due to security reasons. This deposit is given back once the deed comes to an end and the property is given back to the owner. Why don’t you take a look at lease homework answers? This will better your learning process.
- Lease also includes that the basic work, whether it is renovation or any other repairable work of the property lent, has to be completed before the start date of the agreement or not.
- And on the other side, it is also mentioned in the lease that Tenant (Lessee) would be responsible for timely maintenance of any part of the property like Walls, Ceilings, Floors, and Lightings,
- Information of types of taxes and its payment along with the premium amount is also mentioned in the agreement.
- Lessee is not supposed to store or use any illegal, hazardous material or stuff in the property. In short, anythingwhich may cause any kind of harm to anyone?
- Any damage by fire, loss or other natural act may give rise to mutual discussions and logical conclusion. The deed includes that also.
What cannot be leased?
Any Computer Software, Copyrights, patent or any other intellectual property, cannot be leased.
But hey!! The most important part is still left. We have covered the facts, but an extra awareness is essential before we make a lease and sign. So what’s that now?
Let’s go through to know lease homework answers to be on a safer side.
- Know all about the hidden cost. Whether it is a small or big company, they should get aware of every single penny which is invested. Consultation with the real estate lawyer is suggested over here.
- The square foot area mentioned in the agreement should be physically verified at the spot. Usually, 80% to 85% is only available to use.
- Get aware of all the portions covered in immovable assets like pillars, elevators, escalators, lobbies in the agreement and in property.
- Recheck the agreement on lease renewal or end date of the same. Many conflicts are raised due to this.
- Previous Electricity bills, taxes, insurance premiums, if any, should be checked with the owner before signing the deed.
- Also, ask for sudden increment in the rental amount. It has to be increased by the owner after a specific period of time
- Most important, do not just go through the agreement. Read and understand it word by word.
That’s it, dear folks.Wasn’t this easy to know? We are sure that the concept is bit brighter now for all lease homework answers.