As a professional, I am pleased to share an article on the “difference between lease deed and rental agreement.” As a tenant or landlord, it is important to know the difference between these two legal documents that govern the rental of a property. While both documents outline the terms and conditions of a rental agreement, there are some major differences that should be considered.
Lease Deed
A lease deed is a legal document that outlines the terms and conditions of a long-term rental agreement. A lease deed is usually signed for a period of one to three years and is binding for the entire duration of the lease. The landlord and tenant agree to a fixed rental rate for the duration of the lease, and the tenant is responsible for paying the rent in a timely manner.
A lease deed gives the tenant exclusive rights to the property for the duration of the lease term. This means that the landlord cannot enter the property without the tenant`s permission, except for specific reasons like emergencies or repairs. The tenant is also responsible for maintaining the property and keeping it in good condition.
Rental Agreement
A rental agreement is a legal document that outlines the terms and conditions of a short-term rental agreement. A rental agreement is usually signed for a period of six months to one year and can be extended if both the landlord and tenant agree. The rental agreement outlines the rental rate, security deposit, move-in date, and other terms and conditions of the tenancy.
Unlike a lease deed, a rental agreement does not provide the tenant with exclusive rights to the property. The landlord can enter the property at any time if they give the tenant reasonable notice, except in cases of emergency. The landlord is responsible for maintaining the property and making repairs as needed.
Key Differences
The key differences between a lease deed and a rental agreement are the duration of the tenancy and the legal rights and responsibilities of the landlord and tenant. A lease deed is a long-term agreement that provides the tenant with exclusive rights to the property, while a rental agreement is a short-term agreement that does not provide exclusive rights to the tenant.
In addition, a lease deed is binding for the entire duration of the lease term and cannot be terminated without the mutual consent of the landlord and tenant. A rental agreement, on the other hand, can be terminated by either party with proper notice.
Conclusion
In conclusion, as a tenant or landlord, it is important to understand the difference between a lease deed and a rental agreement. A lease deed is a long-term agreement that provides the tenant with exclusive rights to the property, while a rental agreement is a short-term agreement that does not provide exclusive rights to the tenant. Each agreement has its own terms and conditions that should be carefully considered before signing. It is always advisable to seek legal advice before entering into any rental agreement.