Lease Agreement- an overview
A Lease agreement is a useful tool whether you’re a landlord or you’re leasing a residential property. A lease abstract can be defined as a brief write up of the contents of a real estate lease. The main objective of the abstract is to bring the reader’s attention to the specific provisions and monetary obligations with respect to the lease contract. A good lease abstract summarizes the lease without negotiating its overall quality. Ideally an abstract should contain important provisions in the lease agreement, such as the time period of the lease, Terms for extending lease, Rents, allocation of onus of Maintenance charges etc.
Lease abstracting becomes a significant activity before mergers and acquisitions or on occasions when space is allocated for commercial purposes as it allows for an efficient understanding of the terms of contract. It also allows parties and professionals to easily evaluate lease information without wasting time going through every page of the lease agreement. It is helpful in organizing the key terms, especially when there are multiple lease agreements between parties. Lease abstracts contain clear cut information that makes the client fully aware of implied terms in the contract and sees that their requirements are met.