What Is a Delaware Lease Agreement?
A Delaware lease agreement is a contract that is made when a property is leased out by the owner of the property in the state of Delaware. Through this agreement, the lessor and lessee lay down the manner in which the lease shall function. The agreement creates a framework for the lease.
When Do You Need a Delaware Lease Agreement?
This lease agreement is needed whenever a lessor decides to lease out his property for a certain period. It may be a residential or commercial property. For residential property, the agreement is known as a Delaware residential lease agreement. The purpose of this agreement is to lay all the rights and obligations of both parties and to specify the manner in which the property may be used.
Inclusions in the Delaware Lease Agreement
The Delaware rental lease agreement must include the names of the lessor and lessee, a detailed description of the property concerned and the term of the lease.
The agreement must mention the rent amount that will be payable by the lessee and the amount of secInclusions in the Delaware Lease Agreementurity deposit. Under the laws of Delaware, for a year long lease, the security deposit shall not exceed one month’s rent.
The contract must also define what acts shall amount to an event of default and must provide remedies for the same. It must include information such as, which party is responsible for maintaining the property, whether the lessee is entitled to keep pets or have guests over etc.
In simpler terms, this agreement should contain the following terms and conditions
- Details of both the parties
- Details of the property for rent
- The purpose for renting and restrictions on the use of the property
- Details of utilities provided by the landlord and the ones for which the tenant has to pay
- Details of the lease including the duration and types
- Payment schedules and the modes of payment
- Penalties and fines for the late payment
- Security deposit and advance payment
- Possession and access of the property
- Pre move-in inspection
- Assignments and successions
- Maintenance, repairs, and alterations
- Termination including premature closure and abandonment
- Permissions regarding guests, pets, noise, parking, waterbeds, or other things
- Disclosures of lead paints, asbestos, prior history of paint and repairs – anything that could impact the decision of the buyer
- Warranties and representations
- Governing law and dispute resolution
How to Draft the Delaware Lease Agreement?
The following are the steps to follow while drafting an agreement:
- The parties must first decide the term of the lease.
- They shall then decide the rent amount, the amount of security deposit and all the other important details.
- All these decided terms must be laid down in a written agreement.
- The agreement must protect the rights of both parties.
- The agreement must be signed by both parties.
- They should agree on details such as guests, pets, parties, smoking, noise/waste
- Treatment of hazardous waste
- Alterations and permissions for assignments and successors
- Grace period for payment of rent
- Disclosures for the buyer
- Fees, payments, and other costs and the responsibility to bear such costs
- Registration and payment of statutory fees including statutory compliances
- The purpose of utilizing the lease and restrictions on what it can be used for
Benefits of the Delaware Lease Agreement
The following are the benefits of this agreement:
- This agreement serves as proof of the terms of the lease.
- It evidences the mutual agreement between the parties.
- It helps to prevent any dispute between the parties in the future.
- It provides certain remedies to the lessor in case the lessee causes any damage to the property or violates any of his obligations under the agreement.
Key Terms in the Delaware Lease Agreement?
The key terms in an agreement are as follows:
- Description of the premises
- Term of the lease
- Rent amount and schedule for payment of the same
- Amount of security deposit
- Default on rent payment
- Maintenance of property
- Guest and pet policies
- Events of default
- Remedies for events of default
- Termination of agreement
What Happens in Case of Violation?
If the terms of this lease agreement are violated by the lessee, the lessor has the option of serving a notice to the lessee asking him to cure such violation within a specified period of time. If this is not done by the lessee, the lessor can terminate the agreement. The lessor can also take back possession of the property and recover damages from the lessee.
A high-quality Delaware Rental Lease Agreements would ideally contain all of the terms and clauses mentioned above, in addition, toa few more curated ones. You can refer to a Delaware Lease Agreement to incorporate such inclusions.
Sample Delaware Lease Agreement
You can download a Delaware lease agreement template here.