Things you need to know about Contract of Lease for Condominium Unit for Residential Use.
Last updated on 20 February 2024
1. What is a Contract of Lease?
A Contract of Lease is an agreement where a property owner (i.e. the lessor) leases his property to another person (i.e. the lessee) for a fee. It contains the terms of the lease and the rights and obligations of the parties, such as the (a) amount of rent; (b) term of the lease; and (c) security deposit.
This contract is for leasing out a condominium unit for residential, purposes. We have other types of lease contracts available:
2. When do you need a Contract of Lease?
A Contract of Lease is needed if you will lease out your property to another person. As the property owner, you need a lease contract to establish the terms that the lessee should follow. It is hard to rely on a verbal agreement or conversation because this is difficult to prove in court and people can easily forget details that have been agreed upon. With a written lease contract both parties can refer to the contract to settle any confusion or dispute regarding the lease.
3. How can a Contract of Lease protect you?
The Contract of Lease can protect the lessor if the lessee:
- Fails or refuses to pay rent;
- Damages the property being leased or is using the property for illegal activities;
- Overstays or fails to return the property; and
- Violates the terms of the lease (i.e. no pets allowed, no smoking policy)
In the cases above the lessor may use the Contract of Lease to demand that the lessee comply with the terms of the lease. If the lessee refuses to comply the lessor may file a complaint in court to either (a) compel the lessee to comply; or (b) cancel the lease, and claim damages.
For the lessee the Contract of Lease puts in writing his rights and obligations under the lease and what is expected of him (i.e. how much rent he has to pay). The Contract of Lease also protects the lessee because the lessor cannot unilaterally change the terms of the lease without the lessee’s consent. For example, once the parties agree on the amount of rent the lessor cannot unilaterally increase the rent without the lessee’s consent.
4. What information do you need to create the Contract of Lease?
To create your Contract of Lease you’ll need the following minimum information:
- The type of lessor (i.e. individual or business) as well as name and details (i.e. nationality and address).
- The type of lessee (i.e. individual or business) as well as name and details (i.e. nationality and address).
- The type of property to be leased and its description (i.e. address and size).
- Basic terms of the lease (i.e. amount of rent, term of lease).
5. How much is the document?
The document costs PHP 450 for a one-time purchase. Once purchased, you have unlimited use and revisions of this document.
You can also avail of Premium subscription at PhP 1,000.00 and get (a) unlimited use of our library of documents, from affidavits to contracts; and (b) unlimited use of our “Ask an Attorney” service which lets you consult a lawyer for any legal concern you have.
