does an assignment of lease need to be notarized

Assignment of Lease: How It Works and Parties Involved

Jump to section, what is an assignment of lease.

The assignment of lease is a title document that transfers all rights possessed by a lessee or tenant to a property to another party. The assignee takes the assignor’s place in the landlord-tenant relationship.

You can view an example of a lease assignment here .

How Lease Assignment Works

In cases where a tenant wants to or needs to get out of their lease before it expires, lease assignment provides a legal option to assign or transfer rights of the lease to someone else. For instance, if in a commercial lease a business leases a place for 12 months but the business moves or shuts down after 10 months, the person can transfer the lease to someone else through an assignment of the lease. In this case, they will not have to pay rent for the last two months as the new assigned tenant will be responsible for that.

However, before the original tenant can be released of any responsibilities associated with the lease, other requirements need to be satisfied. The landlord needs to consent to the lease transfer through a “License to Assign” document. It is crucial to complete this document before moving on to the assignment of lease as the landlord may refuse to approve the assignment.

Difference Between Assignment of Lease and Subletting

A transfer of the remaining interest in a lease, also known as assignment, is possible when implied rights to assign exist. Some leases do not allow assignment or sharing of possessions or property under a lease. An assignment ensures the complete transfer of the rights to the property from one tenant to another.

The assignor is no longer responsible for rent or utilities and other costs that they might have had under the lease. Here, the assignee becomes the tenant and takes over all responsibilities such as rent. However, unless the assignee is released of all liabilities by the landlord, they remain responsible if the new tenant defaults.

A sublease is a new lease agreement between the tenant (or the sublessor) and a third-party (or the sublessee) for a portion of the lease. The original lease agreement between the landlord and the sublessor (or original tenant) still remains in place. The original tenant still remains responsible for all duties set under the lease.

Here are some key differences between subletting and assigning a lease:

• Under a sublease, the original lease agreement still remains in place.
• The original tenant retains all responsibilities under a sublease agreement.
• A sublease can be for less than all of the property, such as for a room, general area, portion of the leased premises, etc.
• Subleasing can be for a portion of the lease term. For instance, a tenant can sublease the property for a month and then retain it after the third-party completes their month-long sublet.
• Since the sublease agreement is between the tenant and the third-party, rent is often negotiable, based on the term of the sublease and other circumstances.
• The third-party in a sublease agreement does not have a direct relationship with the landlord.
• The subtenant will need to seek consent of both the tenant and the landlord to make any repairs or changes to the property during their sublease.

Here is more on an assignment of lease here .

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Parties Involved in Lease Assignment

There are three parties involved in a lease assignment – the landlord or owner of the property, the assignor and the assignee. The original lease agreement is between the landlord and the tenant, or the assignor. The lease agreement outlines the duties and responsibilities of both parties when it comes to renting the property. Now, when the tenant decides to assign the lease to a third-party, the third-party is known as the assignee. The assignee takes on the responsibilities laid under the original lease agreement between the assignor and the landlord. The landlord must consent to the assignment of the lease prior to the assignment.

For example, Jake is renting a commercial property for his business from Paul for two years beginning January 2013 up until January 2015. In January 2014, Jake suffers a financial crisis and has to close down his business to move to a different city. Jake doesn’t want to continue paying rent on the property as he will not be using it for a year left of the lease. Jake’s friend, John would soon be turning his digital business into a brick-and-mortar store. John has been looking for a space to kick start his venture. Jake can assign his space for the rest of the lease term to John through an assignment of lease. Jake will need to seek the approval of his landlord and then begin the assignment process. Here, Jake will be the assignor who transfers all his lease related duties and responsibilities to John, who will be the assignee.

You can read more on lease agreements here .

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Assignment of Lease From Seller to Buyer

In case of a residential property, a landlord can assign his leases to the new buyer of the building. The landlord will assign the right to collect rent to the buyer. This will allow the buyer to collect any and all rent from existing tenants in that property. This assignment can also include the assignment of security deposits, if the parties agree to it. This type of assignment provides protection to the buyer so they can collect rent on the property.

The assignment of a lease from the seller to a buyer also requires that all tenants are made aware of the sale of the property. The buyer-seller should give proper notice to the tenants along with a notice of assignment of lease signed by both the buyer and the seller. Tenants should also be informed about the contact information of the new landlord and the payment methods to be used to pay rent to the new landlord.

You can read more on buyer-seller lease assignments here .

Get Help with an Assignment of Lease

Do you have any questions about a lease assignment and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from real estate lawyers who specialize in lease assignment.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Meet some of our Assignment of Lease Lawyers

David is an experienced attorney specializing in estate planning, contracts, local government, commercial law, and trademarks. In addition to his 9 years as an attorney, he also brings additional financial services experience as a registered investment advisor, stockbroker, and life insurance agent. David is known for his attention to detail, strong communication skills, and dedication to achieving favorable outcomes for his clients.

Attorney Garrett Mayleben's practice is focused on representing small businesses and the working people that make them profitable. He represents companies in structuring and negotiating merger, acquisition, and real estate transactions; guides emerging companies through the startup phase; and consults with business owners on corporate governance matters. Garrett also practices in employment law, copyright and trademark law, and civil litigation. Though industry agnostic, Garrett has particular experience representing medical, dental, veterinary, and chiropractic practices in various business transactions, transitions, and the structuring of related management service organizations (MSOs).

Maria Akopyan is a dedicated family law attorney with a focus on marital agreements (prenuptial, postnuptial, and cohabitation agreements) as well as uncontested and default divorces. As the founder and principal attorney at Sapphire Legal Solutions, APC, Maria is committed to providing compassionate, efficient legal guidance through some of life’s most challenging transitions. Whether you’re navigating an amicable divorce or seeking a marital agreement, Maria offers personalized legal solutions that are uniquely tailored to your needs. With her extensive knowledge of family law, she works tirelessly to protect your rights, advocate for your best interests, and guide you empathetically toward a positive resolution. Maria understands the emotional complexities involved in family law matters. She strives to make the legal process as smooth and supportive as possible, ensuring that your family's well-being is safeguarded every step of the way. Trust Maria to be your reliable advocate, helping you find the best legal path forward for you and your loved ones. Let’s work together to resolve your legal matters with care, clarity, and confidence.

Education Jim Schroeder holds multiple degrees from several institutions. He received his Juris Doctor from Rutgers School of Law in Camden New Jersey. He also earned two additional Master’s Degrees from Asbury Theological Seminary in Wilmore, Kentucky and United Theological Seminary in Dayton, Ohio. In addition, Schroeder has done graduate work in Public Sector Labor Relations and American History at Rutgers University and Nonprofit Leadership at Duke University. Jim Schroeder was admitted to the New Jersey Bar Association in 2008; the District of Columbia Bar Association in 2010; the New York State Bar Association in 2014; and the Ohio Bar Association in 2020. He is also admitted to the Federal Courts of Southern New Jersey and Southern Ohio.

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Assignment of Lease

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I’m planning on leasing land from a church. Putting a gym on the property. And leasing it back to the school.

Ok; first step is that you will need a leasing contract with the church. Ask them to prepare one for you so you would just need an attorney to review the agreement and that should cost less than if you had to be the party to pay a lawyer to draft it from scratch. You need to ensure that the purpose of the lease is clearly stated - that you plan to put a gym on the land so that there are no issues if the church leadership changes. Step 2 - you will need a lease agreement with the school that your leasing it do (hopefully one that is similar to the original one your received from the church). Again, please ensure that all the terms that you discuss and agree to are in the document; including length of time, price and how to resolve disputes if you have one. I hope this is helpful. If you would like me to assist you further, you can contact me on Contracts Counsel and we can discuss a fee for my services. Regards, Donya Ramsay (Gordon)

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The Signature No One Talks About – Notarization on Lease Agreements

Home » The Signature No One Talks About – Notarization on Lease Agreements

If your business operates a brick-and-mortar store – a commercial storefront, a share-space, even a kiosk – your space is your livelihood. If your business is real estate leasing, your tenants are your bread and butter. In a congenial business relationship, all parties involved benefit from an airtight lease agreement; in a contentious tenancy, the benefit is in knowing where the lease falls short.

Notarization is often overlooked in the long lease checklist, partially because the need for notarization is uncertain. When should I get a notary? Does the law differ on commercial versus residential leases? What if we later modify the lease?

Thankfully, we can answer these questions in short order. Let’s start with the fundamentals.

Basic Notarization Requirements

Under Ohio’s Statute of Frauds (O.R.C. § 1335.04), all transactions involving interests in real estate must be in writing and signed. Signed by whom? Well, the parties to the lease of course. But for notary signature requirements, we must turn to Ohio’s Conveyance Statute.

The Conveyance Statute (O.R.C. § 5301) has two defining characteristics. First, it applies equally to residential and commercial leases. Second, it’s requirements for notarization are mainly a function of time. Read together, sections 5301.01 and 5301.08 state that a lease whose term is three years or less does not require notarization. By its inverse, leases greater than three years  do  require notarization – an interpretation which the courts have confirmed.

Extensions and Modifications

Things get more complicated when we talk about lease renewals and extensions, but only slightly. When calculating the “length” of a real estate lease that contemplates an extension, we add the extension’s longest potential length to the original term. For example, a three-year original term with a one-year renewal brings our lease to four years in length and places it within the Conveyance Statute. A one-year initial term with recurring one-year renewal terms has the same effect. As a rule of thumb, if a lease  could  last more than three years, it needs to be notarized. This applies to automatic renewals and options alike.

Modifications of a lease may also require notarization, depending on the type of modification made. Under Ohio law, where a modification to a lease alters the “fundamental possessory interests” of the parties, it is a conveyance of interest and must be notarized. A “fundamental possessory interest” can be either a change in the dimensions of space to which the tenant has access (i.e. adding or subtracting lease space) or – of course – a change in lease duration.

Effects of Improper Execution

A lease that falls within the Conveyance Statute and is not notarized is known as a defectively executed lease. Once a tenant takes possession under a defective lease and pays rent, only a periodic tenancy is implied by law, regardless of the duration stated in the lease. The implied “period” of the tenancy is based on the lease’s payment schedule. If rent comes due monthly, the law will imply a month-to-month periodic tenancy. In all other respects, the terms of the defective lease will be upheld.

It’s always best to do the math and determine for yourself if a lease could last more than three years. Sometimes provisions can complicate an otherwise simple math problem, so if you’re uncertain you should consult an attorney or play it safe and secure notarization.

Thank you for your readership and continuing interest in Daniel Ross & Associates. Please reach out to us or post a comment below to continue the discussion.

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Home Resources Real Estate Assignment vs. Sublease

Assignment vs. Sublease: What Are the Key Differences?

Updated September 26, 2024 | Written by Sara Hostelley Reviewed by Brooke Davis

When leasing property, you might encounter situations where you need to transfer your lease or share your rented space. Assigning a lease and subletting are potential solutions, but you should first understand their implications.

In this article, we explore the differences between a lease assignment and sublease, explain how these arrangements work, and discuss the rights and responsibilities they entail.

What Is a Lease Assignment?

A lease assignment is when the tenant transfers all their rights and obligations under a lease agreement to another party. The new tenant (the “assignee”) accepts all of the responsibilities and benefits of the leased property.

The assignment of a lease helps you when you need to get out of a lease before it expires. For example, suppose you’ve signed a 12-month lease for a commercial space. If your business relocates after six months and needs to get out of the commercial lease early, you can assign the lease to another entity to relieve your company from the lease responsibility.

What Is a Sublease?

A sublease agreement lets a tenant rent out all or part of their rented property to another person (the “subtenant” or “sublessee”). This arrangement is beneficial when you (as the direct tenant) need to temporarily vacate your rental unit or share the space with someone else. Subletting offers flexibility for short-term housing needs and can help you avoid breaking your lease .

When you enter a sublease, you’ll still be responsible for fulfilling the terms of your original lease, including paying rent and maintaining your unit. Additionally, you’ll assume landlord-like duties toward your subtenant, such as addressing maintenance issues and collecting rent.

Assignment vs. Sublease: Key Differences

Here are the key differences between a lease assignment and a sublease:

• Assignment: Three main parties—the landlord, the original tenant (the assignor), and the new tenant (the assignee).
• Sublease: Two main parties—the original tenant (the “sublessor”) and the subtenant (the “sublessee”). The landlord isn’t a direct party in a sublease.
• Assignment: The original tenant transfers all their rights under the rental agreement to the new tenant. The assignee takes over the lease for the rest of the term.
• Sublease: The original tenant keeps their lease rights but grants the subtenant rights to use an entire rental unit (or part of it) for a certain period. The subtenant’s rights are secondary to the original tenant’s.
• Assignment: The new tenant assumes liability for the lease, but the original tenant may remain secondarily answerable to the landlord if the assignee defaults.
• Sublease: The original tenant remains fully liable to the landlord for the lease’s obligations. The subtenant is only responsible to the original tenant.
• Assignment: The assignee pays rent to the landlord.
• Sublease: The subtenant pays rent to the sublessor; they have no financial obligation to the landlord. The sublessor must make full rent payments to the landlord.
• Assignment: The assignee can use the leased premises in the manner outlined in the original lease. Any conditions or restrictions that applied to the original tenant now apply to the assignee.
• Sublease: The subtenant uses the property as described in the sublease, which may or may not be consistent with the original lease’s terms. The original tenant must ensure that the sublease’s terms don’t violate the original lease.
• Assignment: The original lease agreement stays in effect, but all responsibilities transfer to the assignee. Any changes to the lease may require the landlord’s consent.
• Sublease: The original lease governs the sublessor’s obligations, while the sublease dictates the sublessor-subtenant relationship. The sublease cannot override the original lease’s terms.
• Assignment: The landlord must typically issue approval before the original tenant can assign the lease to a new tenant. Most leases have clauses that allow the landlord to approve or reject an assignment based on reasonable grounds.
• Sublease: A sublease also typically requires the landlord’s consent . Some leases may allow subletting without further consent from the landlord, as landlords have fewer concerns because the original tenant keeps their promises in the lease.
• Assignment: The landlord and the new tenant (the assignee) enter a relationship.
• Sublease: The landlord has no direct involvement with the subtenant. The subtenant answers to the tenant, while the tenant answers to the landlord.

How to Choose Between Assigning a Lease and Subletting

Here are some factors that may influence your choice between assigning a lease and subletting:

• Duration of Need: Consider how long you plan to vacate the property. If you want the option to return, choose subletting. If you plan not to return, choose assigning the lease.
• Liability: Think about how much responsibility you want to have. Assigning a lease minimizes your liability, while subletting keeps you liable if the subtenant defaults.
• Lease Terms: Check your lease for an assignment or sublease clause. If your lease favors subletting and restricts assignments, you may opt for a sublease.
• Landlord’s Approval: If your landlord is willing to let you assign the lease to someone else, you may choose this option because it provides a cleaner break. However, it might be easier to get approval for a sublease than for an assignment.
• Control Over the Property: Subletting may be right for you if you wish to retain some control over the property. However, if you no longer have an interest in using or benefiting from the property, you may pursue a lease assignment.
• Market Conditions: In a renter’s market, you may be able to sublease to another individual and charge payments that cover your monthly rent and let you profit. If the rental market is weak in your area, you may opt to assign the lease instead.

Privity of Contract and Privity of Estate in Lease Assignments and Subleases

You can further distinguish between lease assignments and subleases by determining the presence or absence of the privity of contract and privity of estate between the involved parties:

• Privity of contract: A relationship between two parties that lets them enforce the terms of their contract against each other.
• Privity of estate: A relationship between two parties with an interest in the same property.

This table summarizes whether privity of contract and privity of estate exists between the parties in an assignment:

This table summarizes whether privity of contract and privity of estate exists between the parties in a sublease:

Example of Privity of Contract and Estate in an Assignment

Sophia owns Riverside Apartments. She leases Riverside Apartments to Mark for a term of 4 years. In the third year of the lease, Mark decides to assign his interest in Riverside Apartments to Jordan.

Here’s whether privity of contract and privity of estate exist between the parties:

• Sophia and Mark: Sophia and Mark retain privity of contract but not privity of estate because the original lease is still valid, but the interest in the property goes to Jordan.
• Sophia and Jordan: Sophia and Jordan maintain privity of estate because Jordan now holds the present interest in the property. Sophia doesn’t have privity of contract with Jordan, as the original lease agreement remains between Sophia and Mark.
• Mark and Jordan: Mark and Jordan share privity of contract because of their agreement regarding the lease assignment. However, they don’t have privity of estate because Mark no longer has a possessory interest in Riverside Apartments; he has fully transferred his rights to Jordan.

Example of Privity of Contract and Estate in a Sublease

David owns Greenfield Plaza. He leases Greenfield Plaza to Brittany for a five-year term. In the fourth year of the lease, Brittany decides to sublease her rights to Emily for the remaining year.

• David and Brittany: David keeps privity of contract with Brittany because their original lease is still in effect. David also has privity of estate with Brittany, as she keeps a legal interest in the property.
• David and Emily: David and Emily don’t have privity of contract because the sublease is a separate agreement between Brittany and Emily. As a result, David has no direct legal obligations or rights concerning Emily. Furthermore, David and Emily have no privity of estate.
• Brittany and Emily: Brittany and Emily have privity of contract and privity of estate because of the sublease they entered into together.

Understanding the Differences Between Assignments and Subleases

Understanding the nuances between assignments and subleases can significantly impact tenants navigating their rental agreements. This knowledge helps them make informed decisions when circumstances require them to transfer or share their leased space.

Review your original lease, talk to your landlord, and talk to a lawyer to protect your interests and create flexibility in your living or business arrangements.

Sara Hostelley

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Sara Hostelley is a legal and SEO content editor with a bachelor's degree in English from the University of South Florida. She has ample experience writing informative content pieces within various...

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Demystifying Assignment of Lease: Your Go-To Guide

LegalGPS : Jul. 25, 2024

When you’re talking about property leasing, it’s important to understand that there are a lot of terms and concepts that you may have never heard before. One of them is the assignment of lease, which refers to a situation where a tenant transfers their rights and responsibilities under the lease agreement to another party.

Assignment of Lease Template

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What is an Assignment of Lease, and why is it so crucial?

An Assignment of Lease is a term you may have heard thrown around, especially if you're involved in rental properties. It’s a pretty important document. But what exactly is it? Well, in simple terms, an Assignment of Lease is an agreement where the original tenant of a property transfers their leases and all of its rights and obligations to a new tenant. Now, you might be wondering, "When would this scenario ever occur?"

Let's imagine you're a tenant who signed a three-year lease for an office space. However, two years in, you need to relocate due to unprecedented growth of your business. Instead of breaking the lease, you might choose to assign your lease to another business looking for office space. This means that you, as the original tenant, no longer have any obligations under the lease. The new tenant is now responsible for paying rent and complying with all of the terms of the previously signed agreement.

Now that you understand, let's get into the step-to-step guide on how to create an Assignment of Lease!

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Steps to Write an Assignment of Lease

Creating a thorough Assignment of Lease agreement doesn't need to be an overwhelming task. Simply follow these steps to ensure your agreement is both comprehensive and legally binding:

Step 1: Identify the Parties

The information of each party should be included. For the existing tenant (the assignor), make sure to include:

Full legal name or business name

Postal mailing address

Phone number and email address

Do the same for the new tenant (the assignee). Make sure all the information is up-to-date and accurate to avoid any unnecessary confusion or disputes. For example, if the assignor is a business, make sure they have updated their mailing address with the post office to reflect their new building location. If a party has multiple addresses, be sure to list them all.

Step 2: Specify the Lease

This section requires exact information from the original lease agreement, including:

Property address and description

Lease start and end date

A reference to the original lease agreement (for instance, a sentence like "the lease agreement dated...")

Remember to include a copy of the original lease as an attachment to ensure the assignee understands the terms they're adhering to. If not already included in the original lease agreement, be sure to add the following information: Description of rental property, Lease term (how long the lease is good for), Rent amount, and Security deposit amount.

Step 3: Detail the Assignment

State that the assignor is transferring all their interests and obligations in the lease to the assignee. Here, write something like:

"The Assignor hereby assigns, transfers, and conveys to the Assignee all of the Assignor's rights, title, and interest in and to the Lease, together with all the Assignor's obligations, liabilities, and duties under the Lease."

This means that the assignor is transferring all of their interests and obligations in the lease to the assignee. This includes any future rent payments, repairs and maintenance responsibilities, notices of default by either party, and so on.

Step 4: Landlord's Consent

Many leases require the landlord's consent to assign the lease. The assignor should request written consent from the landlord and include a clause like:

"The assignment of the lease is not valid unless and until the landlord provides written consent."

This is followed by a place for the landlord to affirm consent by signing or initialing. This is important because the landlord can elect to withhold consent and the assignment will not be valid. If this is the case, you may need to provide additional consideration for your landlord's assent (for example, an increase in rent).

Step 5: Assignee Acceptance

Include a statement in which the new tenant agrees to the assignment and the terms of the lease. It may look like:

"The Assignee hereby accepts this assignment, assumes all duties and responsibilities under the Lease, and agrees to perform all of the Assignor's obligations under the Lease."

You need to do this because the new tenant needs to have an affirmative acceptance of the assignment in order for it to be valid. This is typically done through a letter from the assignee stating that they agree to perform all of your obligations under the lease.

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Step 6: Signature and Date

Every binding legal document needs a date and a signature. Make sure that there is a proper place for the assignor and the assignee to sign and print their names, with a line for the date.

By following these clear, actionable steps, you'll be able to construct an effective Assignment of Lease agreement. Remember, every situation is unique, so adjust the template as necessary, being sure to include all relevant details.

Clear so far? Great! Now, let's focus on the tips to draft a perfect Assignment of Lease.

Tips to Draft a Perfect Assignment of Lease

Accurate Dates: Be sure to include the date when this agreement will take effect. Precision avoids any confusion about durations, when the assignee takes over, or when the assignor's obligations end.

Clear Terms: This document should restate the terms of the original lease. The assignee needs a clear understanding of what they're stepping into. Bit ambiguous? Think of it like this: the assignee should be able to step into the assignor's shoes comfortably.

Specify Rent Terms: Stating the rent amount, due dates, and method of payment in the assignment helps create a record of the agreed-upon rent terms, ensuring no misunderstanding arises in the future.

Specify the Term: The assignment should state how long the new lease lasts. For example, if the original lease is for one year, then the assignee will assume only a one-year term.

Specify Other Conditions: If there are other conditions in place—such as tenant improvements or utility allowances—then specify these too.

An assignment of lease doesn't have to be a formidable task to overcome. With a cautious and considered approach, these documents can be a smooth and seamless part of managing a successful lease transition.

Our contract templates can offer you even more support, empowering you towards crafting an excellent and individualized Assignment of Lease ready for your task. So why not take your next step towards leasing success and check them out today? Click here to get started!

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Does a Lease Agreement need to be notarized?

When you rent a property for the first time, it is legally required to get a lease agreement. A lease agreement protects tenants in an unforeseeable event. With notarization, a lease becomes official. You need a notary public to verify identity and  witness signature  to mark the seal on the lease.  

Whether or not you have to notarize a lease comes down to the period of the lease. So, does a lease need to be notarized? When you rent an apartment or house – you sign a lease, and the next is to  notarize the document  to make it legal.

But not every lease agreement has to be notarized. For instance,  Washington  State recognizes one year or less residential and non-residential leases. The idea is to make the legal process more flexible for landlords and make long-term leases highly accessible for renters.

When should you notarize Lease Agreements?

If the lease term is over a year, it needs to be notarized. On the other hand, if the lease term is less than a year, the lease may not have to be notarized. Still, most leases are over a year and go through the  notarization process to ensure legal  recognition.

Lease notarized

Remember, notarizing a lease does not question its authenticity or make it void – it simply recognizes it. So, if you’re dealing with a short-term lease that is less than a year, there is no need to notarize it. However, understand that each state has its own jurisdiction rules.

Also, lease agreements don’t have a fixed date to end and work on a month-to-month basis. And these leases act as temporary contracts. However, if your state specifically mandates the  notarization of all contracts , then you will have to notarize the short-term lease agreement.  

If you’re wondering whether or not a  rental agreement  has to be recorded, the answer is no. And that’s because verbal  agreements are valid for monthly rentals . And when a commercial or residential lease is more than a year, it requires notarization to keep the legal record.

In some states, notarization comes into play “only” when a lease is over three years long. Remember, a long-term or extended lease is longer a contract – it becomes a legally binding transfer of an interest in a property.

What should be included in a Lease Agreement? 

First, make sure your lease agreement is in writing and should contain the relevant terms. For starters, add tenant names and the rent amount to be paid to the landlord. You should also add starting and ending dates in your lease agreement.

You should also mention the amount of the security deposit and any other paid fees to rent the property. And add conditions for repairs and maintenance in a lease agreement.

Similarly, highlight the rights of the landlord to enter the property. On the flip side, make sure to add tenant resections within the lease to avoid confusion later on.

Where can you notarize a Lease Agreement? 

If you want to notarize your lease agreement, opt for a remote online  notarization platform like PandaDoc Notary . You need to schedule an appointment with an  online notary  agent to start your notarization process.

How to notarize a Lease Agreement?

Whether you need to notarize a lease agreement or a different contract, PandaDoc Notary has got you covered. Notarizing a lease agreement on PandaDoc Notary is a fairly simple process:

1. Create a PandaDoc Notary account and then sign in to your account

2. Choose the document you want to  notarize online

3. Upload the original lease agreement or other type of document you want to notarize

4. Add your contact information, including your email address

5. Click on the received email link

Once you complete these simple steps, you can get connected to an online notary agent.

Final thoughts

In hindsight,  notarizing a lease validates the legal document  and confirms the parties’ identities and that they mutually signed the agreement.

Why PandaDoc Notary?

With PandaDoc Notary, remote online notarization has become easier and simpler. On PandaDoc Notary, you can validate various documents like rental and lease agreements without having to depend on the traditional notarization process.

PandaDoc Notary offers integrated featured services and guarantees a swift notarization process on the platform. Plus, finding an  online notary  agent on the platform takes no time.

Notarize your lease agreement via  PandaDoc Notary  today!

Do a notarized rent agreement valid before the court?

A lease agreement ensures the rights and responsibilities of the involved parties. If and when a matter heads to court, no one can dispute a notarized lease agreement. But in complex legal proceedings, notarized lease agreements are not admissible and don’t validate traditional rental transactions.

How many days does it take to notarize the lease agreement?

On average, getting a lease agreement notarized depends on the service you opt for. Ideally, you can draft and upload the documents, execute the agreement, and notarize it within the same day. But if a lease agreement is long and involves multiple parties, it can take 2-3 days.

Is a notary required for rent agreements?

A notary verifies the furnished document and confirms the identities of the involved parties. Depending on the state, if the lease agreement is a year or less, the tenant is not legally required to notarize the agreement.

Is It Necessary to Notarize a Lease Agreement?

Understanding lease agreements and their notarization can clarify the legalities of renting, ensuring smooth relations between landlords and tenants. This guide dives into the essentials, from the importance of lease agreements—whether written or verbal—to the benefits of notarization, which adds a layer of trust and legal validity, although not always required, depending on state laws and lease specifics.

Table of Contents

If you're a landlord or tenant puzzled by the details of lease agreements and curious about the role of notarization, you've come to the right place. The legalities of renting can seem daunting, but they are essential for ensuring a smooth relationship between a landlord, property owners, and renters.

This guide provides a straightforward overview of lease agreements, highlighting their importance as legally binding documents, whether verbal or written. We'll also delve into notarization—a step that authenticates your lease agreement further, enhancing its security and the mutual trust between landlords and tenants.

Dive into the fundamentals of lease agreements and the notarization process with us. With this knowledge, you can confidently approach the legal aspects of renting, making well-informed decisions that safeguard your rights.

Understanding notarized lease agreements

A lease agreement, or rental contract, establishes a legally binding relationship between a property owner, tenant, and renter, detailing the terms and conditions of the rental arrangement. While it's more common to encounter written lease agreements, verbal contracts can also hold legal weight under specific circumstances.

These agreements safeguard all parties involved, minimizing potential legal disputes by clearly outlining rights and responsibilities. Before finalization, leases can be adjusted to address any changes, clarify points of confusion and legal requirements, and ensure both landlord and tenant are on the same page.

But what does notarization mean in relation to lease agreements? Notarization involves a notary public officially confirming the signatures on the document. This step goes beyond merely applying a stamp or seal; it certifies the authenticity of the lease agreement itself.

For landlords and tenants alike, notarization adds a layer of trust, security deposit, and legal validity to the document, enhancing the security of the contractual relationship.

The legal implications of notarizing lease agreements

Notarizing a lease agreement goes beyond the mere formalities. It carries legal implications, with varying requirements based on state laws, lease terms and duration, legal description, and property type.

We will explore the specifics of requirements based on the state, duration of the lease period, the lease term, and the legal requirement for non-residential lease notarization.

State-specific requirements for notarized lease agreements

Notarization requirements for lease agreements span a wide spectrum across different U.S. states and territories. Take Washington State, for instance. According to Washington State Law under RCW 59.18.210 and RCW 59.18.010, if a lease is for a term of more than one year, it must be notarized. Leases exceeding two years need to be recorded in the county recorder’s office where the property is located.

The role of signature witnesses during the document recording also depends on the specific state law. Ohio, similar to Washington State , also bases its notarization requirements for lease agreements on the duration of the lease.

The variation in state-specific requirements underscores the importance of being well-informed about local laws.

Non-residential leases and notarization

Generally, non-residential leases do not require notarization. However, in Washington State, residential and commercial leases exceeding two years must be recorded in addition to the contract being notarized, as they are considered a transfer of real property interest. Similarly, Ohio mandates notarization for residential and commercial leases exceeding a three-year term.

Despite the lack of a general mandate, notarizing commercial leases can offer added protection in case of disputes or ambiguities concerning the lease agreement. This practice ensures that the landlord and tenant are on the same page, literally and figuratively, mitigating potential legal complications.

When is it advisable to have your lease notarized?

As discussed, although not always legally recognized and required, notarization provides several advantages:

• It vouches for the authenticity of the lease agreement
• It confirms the identity of the involved parties
• Notarized leases add an enforceability layer, making it easier to prove the validity of the lease terms in the event of a dispute.

Notarizing a lease can provide the tenant with several benefits, including:

• Ensuring indisputable recognition of the amounts paid by the tenant, preventing issues regarding payment terms
• Accounting for all legal guarantees within the lease, reducing the chance of overlooking essential obligations
• Equating the tenant’s payment obligations to a court decision, allowing for swift recourse in instances of non-payment

Though notarization may be unnecessary in certain situations and is typically contingent on state laws and the specific circumstances of the lease or tenancy agreement, it is advisable as it provides a significant level of authenticity, enforceability, and protection for both landlords and tenants.

Can I notarize a lease agreement myself?

As a landlord or property manager, you cannot notarize a lease agreement —or any document—if you are a party to the document. Notarizing your own documents would be a conflict of interest and is not legally permissible.

To have a lease agreement notarized, you would need to find an independent notary public who does not have a stake in the agreement.

The notarization process

Finding a Notary Public is your first step. You can use online resources like FindaNotary.com , Notary Public databases, or directories.

Alternatively, you can find notary services at banks, libraries, and photocopy shops during regular business hours. Retail locations such as AAA, UPS Stores, law firms, real estate offices, tax preparer offices, and auto-tag and license service centers often have on-site notaries. It’s advised to call these locations in advance to ensure a notary is available.

Upon locating a notary, you can proceed to the actual notarization. This requires the signer's personal appearance, which can be in person or through remote online notarization. Before notarization, check the lease agreement for any blank spaces and confirm the type of notarization required by the notarization of a lease document’s certificate wording.

The notary must carefully identify the signer using personal knowledge, acceptable identity documents, or credible identifying witnesses as part of the notarization procedure.

The notarization details must be recorded in the Notary’s journal, as this could be essential if the document or the notarization is challenged in the future. The final step includes completing the notarial certificate and ensuring all details, venue, notary signature, and notary seal are correctly placed and legible.

Remote online notarization

Remote Online Notarization (RON), a modern solution, facilitates lease agreement notarization via electronic signatures and real-time identity verification on digital platforms. RON simplifies the notarization process, allowing for rapid and efficient document execution and cost savings by minimizing the need for physical documents and storage.

RON is a blessing for landlords managing properties in various locations and for tenants relocating, as it offers the convenience of remote management. Moreover, RON technologies contribute to environmental conservation by reducing paper use and incorporating digital audit trails for increased security and evidence of transactions.

With an established fee structure, RON services are widely available across most U.S. states, promoting accessibility while providing secure platforms that incorporate fraud prevention mechanisms.

Costs and considerations for notarizing a lease

Potential costs should be factored in while contemplating lease notarization. Notary public fees paid for notarizing documents like leases vary by state, with maximum fee schedules set by state regulations.

Additional costs may include travel fees if the notarization is performed off-site, and any lease or contract amendments will require a new notarization, which can add additional fees to the time and total expense.

However, there are ways to offset these costs. Cost-saving options for notarization can include using services provided by banks or credit unions, which sometimes offer discounted or complimentary notarizations for their account holders.

Weighing these costs and considerations can help you make a more informed decision about notarizing your lease.

The role of witnesses in lease notarization

In lease notarization, witnesses hold a significant role. They observe the signing of the document with two witnesses and must be over 18, of sound mind, and have no interest in the lease to avoid conflicts of interest. Their presence ensures that signing parties act willingly and without coercion while providing assurance about the authenticity and validity of signatures should they be disputed.

Notaries generally should not act as witnesses to maintain impartiality; however, in certain states, they may become signature witnesses for real property transactions. The signer is responsible for providing the witness, while the notary must record witness signatures as necessary.

Signature witnesses are not required to be identified, nor are their own signatures notarized. Notaries should note the signature witness’s name in their journal for record-keeping and as a best practice, although notarization is unnecessary for that witness.

Electronic signatures and digital leasing agreements

Electronic signatures and digital leasing agreements, such as those offered by Azibo, have changed how rental contracts can be handled. They offer:

• Cost savings by reducing paper, ink, and transportation expenses
• A more professional and current image for landlords, which can attract tenants and improve occupancy rates
• Safe document storage and organization, enhanced by encryption and secure cloud storage facilities

Creating an electronic signature for a lease involves the following steps:

• Selecting a service
• Uploading the document
• Designating signature areas
• Specifying signatories
• Sending it to be signed

Signing processes can be automated by integrating data sources and management systems, improving accuracy and efficiency.

Electronic signatures enable signers to execute leases and temporary contracts from various locations, adding significant flexibility for all parties involved.

Notarized lease agreement–Your questions, answered

Lease agreements are vital to rental legality, and notarization is crucial in validating these agreements. Notarization requirements vary by state lease duration and even the type of property leased. While not always legally required, notarizing leases is advisable for added authenticity, enforceability, and protection.

Modern solutions like Remote Online Notarization simplify the process, while digital leasing agreements and electronic signatures, such as those offered through Azibo, streamline transactions.

With the role of witnesses and notaries in preventing fraud and the insights from legal professionals, it’s clear that notarizing lease agreements is a prudent step towards a more secure rental process.

Does a lease have to be notarized FAQs

Do leases in ny need to be notarized.

No, lease agreements do not need to be notarized in New York. As leases are considered similar to standard contracts valid in the state, notarization is not required.

Does a lease have to be notarized in Texas?

No, lease agreements do not notarize a lease need to be notarized in Texas. They only need to be signed by the tenant and landlord.

Does a rental agreement need to be notarized in California?

No, in California law, rental agreements do not need to be notarized. It is only notarized is required by state law as long as the criteria for a valid and legally binding lease are met.

Disclaimer: This article provides general information regarding the notarization of lease agreements and the use of digital leasing agreements and electronic signatures. The necessity and process of notarizing lease agreements can vary significantly by jurisdiction and may depend on specific circumstances. Therefore, it is essential to consult with a legal professional to understand the requirements and implications of notarization in your area.

Important Note: This post is for informational and educational purposes only. It should not be taken as legal, accounting, or tax advice, nor should it be used as a substitute for such services. Always consult your own legal, accounting, or tax counsel before taking any action based on this information.

With 7 years in property management, Gemma serves as a key content strategist at Azibo.com. While excelling in writing, editing, and SEO, she also enhances Azibo's social media presence. Passionately, Gemma educates others to make informed real estate investment decisions in the ever-changing market.

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Do Contracts Need to Be Notarized or Witnessed?

When signing an agreement, business owners may sometimes wonder, "does my contract need to be notarized or witnessed?"

The short answer is generally no: Business contracts typically don't need to be notarized or witnessed in order to be legally binding.

There are, however, several good reasons to consider having a contract notarized or witnessed.

What Good Is Notarizing a Contract?

A notary can play an important role in making sure that a contract is legally enforceable, even if notarization isn't necessary. Just like wills, there is generally no requirement that a contract be notarized in order to be legally binding.

However, if a party who signed a business agreement decides to dispute that agreement in court, a notarized contract can help a great deal.

Notary publics serve an important function by verifying the identity of someone who signs an agreement and attesting to that person's signature. Notarization can prove that a party who objects to the agreement was indeed the person who signed the contract.

Since this would only apply in the case of written contracts, a notarized contract could be especially important in agreements that must be in writing . These include real estate sales, wills, debt agreements, and real estate leases for over a year.

Having a notary present when these types of contracts are signed isn't necessary for the contract itself to be legal, but it may come in handy if the contract is ever disputed in court.

Witnesses to a Contract

Like notaries, witnesses aren't generally required in order for a contract to be legally enforceable. However, each state may require special kinds of contracts (e.g., real estate deals, wills, and marriage agreements) to be witnessed by a third party in order to be binding.

For example, although not important to most businesses' operations, most states require at least two witnesses to be present for the signing of a will.

Employers looking to close a deal on commercial real estate should be aware that some states require deeds or mortgages to be witnessed in order to be recorded by the state or county. In Florida, for example, deeds must have at least two witnesses (or be notarized) before being recorded and acknowledged as legally binding.

If you're worried that your contract might need to be notarized or witnessed, consult an experienced contracts attorney in your area.

Related Resources:

• Find Business and Commercial Lawyers Near You (FindLaw's Lawyer Directory)
• 5 Clauses Every Employment Contract Should Include (FindLaw's Free Enterprise)
• 3 Things to Know About Employee Contracts (FindLaw's Free Enterprise)
• Agents and Contracts: 5 Legal Considerations (FindLaw's Free Enterprise)
• 5 Clauses Every Partnership Agreement Should Include (FindLaw's Free Enterprise)

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