Your offer is accepted.
When your offer is accepted, the Estate Agent will draw up a lease agreement for you and the property owner to sign. Upon signing this lease you will be required to make a payment for a security deposit and the first month rental. This payment is to be made to the Estate Agent.
The Lease Agreement.
The lease agreement is signed between the two parties, to ensure both parties know how they become legally bonded for rent/letting the property. Although it is standard document, you are advised to read it carefully and understand it.
We would like to lift out a few important matters, as they could be cause for confusion.
Period of lease
The period of lease states the period from the day you will occupy the property until the day
you have to vacate the property. This is called the "fixed period ".
Unless stated, you will not be able to vacate the property before the end date in the lease, neither can the landlord terminate the lease before that date. It is possible to have a 'break clause' in the lease. This break clause will state that either party is allowed to terminate the lease prematurely, usually with a notification period of three (3) months.
The lease will usually give you the option to renew the lease for another period equal to the original lease period.
Rental sum
This is the sum which you have agreed on before drawing the lease. This rental sum is, in case of a more year lease, subject to an annual compound escalation as will be stated in the lease.
The rental usually needs to be paid on or before the first day of the month. On overdue rentals one will pay a penalty at a rate of 2% per month.
Security deposit
The tenant is required to pay a security deposit equal to one months rental. The security deposit is not bearing interest and is refundable in full at the end of the lease agreement if the tenant has met all his obligations for returning the property to the owner.
Although you pay the security deposit to the Estate Agent, this deposit is held by the landlord, not the Estate Agent. The Estate Agent will transfer the deposit to the landlord, once all arrangements are made.
Lease fee
The Estate Agent will charge you, the tenant, for drawing up the lease. But note, this is the only charge an Estate Agent is to make to you.
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