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Real Estate Legal Tip

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Real Estate Legal Tip:  Special Stipulations for Residential Leases

Many agents are now involved in writing residential leases, in addition to the traditional Purchase and Sale contracts. 
 
Some of these leases will be in conjunction with a “Lease-Purchase” and some will not.  Either way, the lease contract should be complete and correct in order to be enforceable.
 
Here are some issues that should be considered and possibly included in the Special Stipulations:
 
1.     HOA or condo dues (if mandatory):  specify whether the landlord or tenant pays these;  (if tenant, factor this into rent).
2.     Hazard insurance for contents:  specify whether tenant is required to have and pay for.
3.     Pets:  always be very specific on types of pets allowed (even size) and include additional deposits for pet damage.
4.     Legal description:  needs to be as complete as possible.
5.     Rent payments and late charges:  be very specific about due dates (postmark or receipt).
6.     Security deposits:  specify whether these funds can be applied to unpaid rent during the lease, at the end of the lease, or never.
7.     Commission:  best to collect from the tenant, not the landlord, as a deduction from the first rent payment.  Also specify the commission due upon an eventual closing between the same parties.
8.     If the lease is tied to a purchase (hopefully), specify if any of the rent will be credited as nonrefundable option money towards the purchase price.  This is not earnest money, because it is not refundable. 
 
 
Presented by Leigh Clack, Attorney
Neel & Robinson Attorneys at Law, LLC
22 Lenox Pointe, Atlanta, GA 30324
lenox@neelandrobinson.com
404-705-3690       fax  404-705-3697

More Legal Tips From Neel & Robinson:

How To Protect Your Cash Home Buyers

New Georgia Law Changes Property Tax Assessment Procedure

 The Buyer Should Do Repairs Whenever Possible, Not The Seller

 Watch Language in Short Sale Letters

Flood Insurance Is Not Always Available

Make Sure You Know Who Owns The Property!

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This entry was posted on Monday, August 30th, 2010 at 9:00 am and is filed under Legal Tips By Neel & Robinson. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.