A lease agreement concluded without notarisation is invalid.

Truth or myth?

The correct answer is…MYTH.

What form does the law require for a Lease Agreement

It should be known that the law does not require a specific form (with or without notarisation) for a lease agreement to be valid. It is entirely possible and lawful for the arrangements between the two parties to be made verbally. However, you should know that any breaches of a verbal agreement are difficult to prove. That is precisely why the most common form is a written agreement without notarisation, or a so-called simple written contract.

When do we recommend mandatory notarisation

When concluding lease transactions for commercial premises and higher-value properties, however, we recommend mandatory notarisation of the lease agreement, as this way we can obtain stronger legal protection both as tenants and as landlords.

We have prepared a few more details for you related to the lease agreement, which will save you many questions

Form of the agreement

Usually most lease agreements are in a standard form, but of course it is also possible to conclude an agreement with more specific clauses that safeguard your interests as either tenant or landlord.

Term of the agreement

You are probably wondering why most consultants advise that the Lease Agreement be concluded for a term of 1 (one) year? This is because the situation allows, when the agreement is renewed after its term expires, for some of the conditions that do not suit you at the moment to be renegotiated. In addition, this also avoids the obligation to register a lease agreement for a property in the Property Register at the Registry Agency.

Duration of the agreement

According to the Obligations and Contracts Act, the duration of the Lease Agreement cannot be more than 10 (ten) years, except for one relating to a commercial transaction.

The lease agreement is deemed terminated upon expiry, except in cases where the two parties further agree to extend it. It is important to know that in all cases the lease agreement may also be terminated prematurely. Usually the notice period is 1 month (it may be 2, 3, etc.). In some cases, in the event of non-compliance with the terms of the agreement, the parties may also request termination by law without the agreed notice period.

How to protect ourselves

Work with a professional! To be completely at ease during a property transaction, regardless of which side of the agreement you are on, our legal department is at your service, and our consultants are familiar with all the details of this important procedure.