Writing of a Lease Agreement
Writing a lease agreement
- The details of a lease agreement are up to the parties, and thus, there are no formal forms of lease agreements. However, a lease agreement through a real estate agency is required to contain the following (Article 26(1) of the Licensed Real Estate Agents Act and Article 22(1) of the Enforcement Decree thereof):
· Personal information of each party;
· Information of the object of the lease;
· Date when a lease agreement is made;
· Matters on deposit, retal fees, payment date, etc.;
· Lease commencement date;
· Details on the transfer of a right;
· Terms and conditions;
· Date when the confirmation of the object of the lease is delivered;
· Other stipulations.
Personal information of the parties
- Personal information of each party is required for identity verification. Any information such as name, address, resident registration number, phone number, etc., can be included for mutual contact, if necessary.
Transaction price and the date of payment
- The transaction price consists of deposit, intermediate payment and balance or in the form of deposit and balance, which are usually paid separately.
- It is advisable to pay 10% of the total amount as a deposit upon writing a lease agreement and pay the balance on a moving date.
Term of lease
- The term of a lease is generally 2 years. One-year term of a lease can be extended by another 1 year (Article 4(1) of the Housing Lease Protection Act).