A lease is a written contract in which one party rents property like land, house, warehouse, etc. to the other for an agreed period of time. According to a real estate lawyer in Oshawa, a lease agreement can be written in number of ways based on the interest of the parties involved. However, there are many aspects to be considered while writing the agreement such as responsibilities of the tenants, date of occupancy, permissions to use the property, restrictions on renovation or modification, etc. These points have to absolutely accurate in the agreement so that if either party cross the line, they can be penalized or punished. Further, there are two types of leases that one should be clearly aware of – residential lease and commercial lease. Contact Thomas & Efraim real estate lawyers to know which type of lease suits your property the best. It is because the two types appear similar but have some important differences.
A residential property should follow the residential codes all the time. The maintenances and modifications should be done based on the laws proposed by the department of residential building.
Commercial properties are located in a particular zone that is exclusive for them. No individual or company should try to expand their property beyond the zone and the person who is going to take the lease should check whether the property is within the zone. If not, many problems occur as the commercial lease would seem to be made without considering the codes written. All the real estate law firms Oshawa will have detailed instructions about the codes so that no one would commit such errors.
Use of property
A residential property is leased assuming the fact that it is for the use of a family. Further, it is expected that the people who are in the property would behave in accordance with the rules of the neighborhood and common rules of residence.
A commercial property is leased without any assumptions and has clear cut expectations from the person who took the property for lease. According to a real estate lawyer in Oshawa, a “Premise Clause” is inevitable in a commercial lease and it clearly gives out the area given to the individual or a company. No activity shall be done outside the premises without the permission of the owner. The premise should also be maintained according to the purpose stated in the lease agreement.
Improvements or modifications
In case of a residential property, the client expects the owner to make modifications so that everything runs well including electricity, water, sewage, etc. If the tenant expects some improvement then he or she should inform the owner so that the changes are made. There are tenant improvements that often go unnoticed and if the owner wants he or she can take some amount to close the deal.
In case of commercial properties there is great liberty for the tenant to make changes. It is because the changes are necessary to suit the purpose of a business or anything of commercial importance. However, if the improvements are damaging the owner might file a case with the help of real estate law firms Oshawa.
The changes might be small, but they can have a great effect on the tenant or the owner. So, be careful while looking to lease a property or trying to give a property for lease. Make sure to contact a lawyer to avoid any mishaps.