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Verbal Lease Agreements

Is a verbal lease agreement valid?

Many people incorrectly believe that verbal lease agreements are not binding contracts. Verbal lease agreements are actually valid legal contracts but it is always recommended that all lease agreements become signed contracts between a landlord and tenant. This is a sensible solution, as it removes any possible future confusion that could relate to rental payments, maintenance of the leased property and/or landlord and tenant’s respective duties.

What often happens though, is that a verbal lease agreement is entered into but only later on is a written agreement created. There are some important points to note in this regard. Firstly, a written lease agreement cannot table terms and conditions that are different to those created in the verbal agreement. If this occurs, the tenant has the right to refuse to sign the written lease agreement and the terms and conditions will have to be negotiated between tenant and landlord. Also, should a tenant request a written lease agreement from a landlord, the landlord is legally compelled to provide one.

It’s always better for both tenants and landlords to create and sign a written lease agreement before a property is rented out.

Can we help you to create a lease agreement? Contact us for assistance.

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