A tenancy agreement is a highly official document, which is maintained carefully in the United States of America to keep a record of the various terms and conditions that appear in a certain contract for tenancy. An agreement of this form may appear as a written document or may be orally finalized, although the former form of agreement is accepted officially and thus agreement documents need to be designed for the specific purpose. The U.S law assures an equal and fair share of rights to both the property owner and the tenant and assigns them with responsibilities and duties to which each of them will be bound during the entire term of the tenancy. The agreement states all those rights, duties, rules, and regulations that apply to both the parties and thus form the most crucial part of the document.
A tenancy agreement is generally framed for a contract signed for some definite period of time, during which the terms and conditions of the agreement apply to both the parties. Also, a certain amount of money is involved in this contract, generally involving an initial down payment, followed by the remaining payment done on completion of the term. The agreement thus involves a number of factors, which need to be considered while framing this important document. Some of them have been stated below:
- The agreement should contain clear and complete identification details of the landlord as well as the tenant, including their names, address, contact numbers, email id, profession, office details (if need be), such that the original person or organization can be tracked or referred to just at the right time.
- The agreement should clearly describe the particular property that is being subject to tenancy, with details of its nature, location, etc.
- The term of the agreement is to be stated clearly, including the validity term and the exact dates of commencement as well as completion.
- The financial particulars involved in the tenancy agreement should be defined accurately. The amounts for each of the payments should be given clearly.
- A complete record of the applicable terms and conditions should be contained in the tenancy agreement document. Any special clauses particular to the agreement, if involved, should also be presented in a written format for ensuring transparency.
- An agreement often involves clauses for termination of the deed, and the particulars for such decisions should be included herein, in clear and understandable terms.
- The signatures of both parties to the tenancy agreement form an important section of the document and should necessarily be included.
- It is generally advisable to frame the tenancy agreement under the supervision of a legal expert, whose signature is also important as much as are those of the witnesses.