The owner is the lessor and the tenant is called the lessee and the agreement to be signed by both the parties is called the lease agreement. The form has the conditions protecting the interest of both the parties. The tenant has to be protected to have a quiet possession of the property during the lease period while the owner has to be protected against payment defaults by the tenant.
Free residential lease forms have a set of standard clauses and option for entering a few additional clauses depending on the requirements of the lessor and the lessee. Duration of the lease, exit clause, lease rental payment and statutory payment are mandatory provisions in the lease form. Duration of the lease has to be specified in terms of minimum number of months for which the lease is valid with the facility to renew under agreement from both the parties. The exit clause specifies the minimum number of days notice to be provided by both the parties if they wish to terminate the lease under any circumstances. Payment of lease rental is to be documented in terms of the amount and the date at which the payment is to be done every month. The lessor is responsible for the payment of all taxes related to the residential property so that tenant will have a peaceful life at the leased premises.
Free residential lease forms will also have provisions for any other clauses such as furnishing provided by the owner, earnest money deposit, penalty clauses for delay in payment and arbitration and legal clauses in case of dispute between the two parties.
