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The content of the lease contract

When renting a house or a flat, a lease contract is usually drawn up between the landlord and the tenant. What should it contain? What should it say?

Claudia Thirion, a real estate lawyer, provides the answer.

Essential information

  • Precise identification of the parties to the contractThis is particularly true if there are several tenants and if they are jointly and severally liable;
  • The purpose of the lease

It is advisable to give a precise description of the rented premises and in particular the annexes and outbuildings of the dwelling (cellar, garden, laundry room, garage, etc.).

In the case of furnished accommodation, the lease contract will also include a precise inventory of the furniture in the rented property.

LThe use that can be made of places

The lease agreement will often specify the use that the tenant can make of the property, as he or she is not allowed to change the use of the property without the landlord's consent. For example, the tenant may not carry out a commercial activity in the rented property unless the landlord has given permission.

Caution: the parties are not necessarily free to change the destination of the premises, as Article 21 (1) of the law of 21 September 2006 provides that ". a dwelling or premises usually rented as a dwelling may not be converted from this use into an office or premises for commercial or craft use, unless expressly authorised by the college of burgomasters and aldermen of the municipality in which the dwelling or premises in question are located ".

The duration of the lease agreement

If no term is stipulated in the contract, it will be a lease for an indefinite period.

Similarly, if the contract is concluded orally, it is presumed to be concluded for an indefinite period (unless proven otherwise).

The parties are free to agree on the duration of the lease contract: the lease can be for a fixed or an indefinite period.

Please note: a lease agreement concluded for a fixed term will automatically be extended if neither party has terminated it. The fact that a contract provides for a specific date does not mean that on that date the tenant is obliged to leave the premises.

The rules to be respected in terms of termination of lease vary according to the person who wishes to terminate the tenancy agreement. The landlord can only terminate the lease in specific circumstances laid down by law, whereas the possibilities for the tenant to terminate are much more flexible.

Very often the lease contract contains a diplomatic clause which allows the tenant, by way of exception, in the event of a transfer abroad for professional reasons, to terminate the lease contract under less restrictive conditions.

  • The start date of the lease agreement

This date is to be agreed upon by both parties.

  • The rent

The payment of a price is an essential condition for the contract to be qualified as a lease contract and for the provisions of the Act of 21 September 2006 to apply. Indeed, Article 1709 of the Civil Code provides that "the lease of things is a contract by which one of the parties undertakes to allow the other to enjoy a thing for a certain period of time, and for a certain price which the latter undertakes to pay him ".

Please note that the rent does not have to be expressed in money. It can, for example, be stipulated by means of renovation work to be carried out by the tenant in the rented flat, in exchange for a rent discount from the landlord. If this is the case, this arrangement must be clearly stipulated in the lease contract: the tenant must prove that certain rents are not due and the landlord must prove precisely what work the tenant must carry out.

The parties normally agree on the periodicity of the payment of the rent and the date of payment of the rent in the month. In most cases the rent is payable in advance, on the first of each month. In this case, the amount of the rent must appear in the landlord's bank account on the first day of each month.

  • The amount of advance payments on charges

This amount must be precisely determined in the lease contract, but must be fixed at a flat rate. The calculation of the rental charges actually consumed by the tenant will be the subject of an annual statement.

  • The rental guarantee

The lease contract should specify the amount of the rental guarantee and how it is to be made available to the landlord (first demand bank guarantee, bank transfer, etc.).

  • The general terms and conditions of the lease agreement

It is best to mention the most important conditions so as not to overload the contract and create confusion.

  •  The state of play

Immediately prior to entering the premises, the inventory of fixtures will be drawn up by both parties and annexed to the lease contract to form an integral part thereof.

It should be remembered that it is essential for the lessee to draw up such an inventory of fixtures in order to enable him or her, in the event of a dispute at the end of the lease, to prove the condition of the rented accommodation when he or she moved in.

Warning: if the lease contract does not provide for an inventory of fixtures and fittings and there is no inventory of fixtures at the time of entry, case law and the law presume that the property was in a good state of repair when the tenant entered the premises. It is then up to the tenant to prove that this presumption does not correspond to the truth!

 

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Posted on

07 November 2016

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