By: Eli Doron, Adv; Yaron Tikotzky, Adv, (C.P.A); Dr.Slomo Nass, Adv, (C.P.A)

  1. If the lease is intermediated by a real estate agency, the tenant shall negotiate with the agency a fixed fee, not a percentage of the rent price, because in the latter case the agency will be rather interested in receiving a higher fee than in presenting him a convenient offer.
  2. After identifying the real estate, the tenant should carry out a due dilligence regarding the ownership title to the owner. The tenant has to ask the owner to present him the following documents:
    - the ownership title;
    - in order to avoid any problems, the client shall ask from the owner certain documents regarding the history of the ownership right;

    - an extract from the Land Registry, attesting the owner’s ownership title and also the legal status of the real estate.
  3.  Besides the documents regarding the ownership title, the owner will present the client the following documents:
    - Tax certificate, in order to prove that the owner has no outstanding debts to the state;
    - Certificate issued by the association of owners of the building in which the real estate is situated (in case the real estate is an apartment, for example), to prove that the owner has no debts regarding the common utilities of the building;
    - Certificate isuued by the utilities providers (such as gas, electricity) in order to prove that the owner had no debt to them, which could cause the disconnection of the real estate from the utility networks.

  4. Regarding the owner’s consent to rent, there should be taken into consideration the following cases:
    a. If the owner rents through a representative, the tenant needs to check if the owner’s representative has a special mandate for rent.
    b. If you rent from a tenant, you must check his rental agreement, in which it has to be expressly stated if he is allowed to rent and under what conditions.
    c. If there are several co-owners, it is needed the consent of all.
    d. If the owner is a company, the general meeting of shareholders needs to make a decision regarding the renting, stipulating the conditions in which it is made and specifying the person designated to sign the rental agreement on behalf of the company.

  5. It is recommended that the negotiation of the rental agreement to be done by the tenant under the assistance of a
    lawyer, to prevent the insertion in the agreement of certain clauses which are not in his favour.

  6. It will be in favour of the tenant to expressly stipulate in the contract the following clauses, referring to the obligations of the owner:
    -simple maintenance repairs are the responsibility of the tenant, starting from entry into the real estate, and repairs needed to maintain the property in a proper state of use represent the obligations of the owner, during the entire lease period;
    - in case the tenant needs to perform repairs which, according to the law are the responsibility of the owner, than the tenant is entitled to deduct the costs of such repairs from the amount of rent;
    - the tenant is entitled to deduct costs for investments made in space rent, investment made in terms agreed with the owner;
    -conclusion of an insurance policy for all risks regarding the property represents the owner’s obligation ;
    - the utilities contracts will be changed on the name of the tenant, in order to avoid any difficulty in deducting such costs;
    - in case the tenant is a company, there should be expressly stipulated that he is entitled to have his registered office in the leased real estate;
    -depending on what activity the tenant intends to perform in the leased space, he may insert other specific clauses.

  7. Regarding the cancellation of the lease agreement, it would be in favour of the lessee to mention that, in the event of unilateral termination of the contract by the tenant, to stipulate a fixed amount representing compensation due to the owner, in order to avoid any further claims of the owner regarding the damages in an eventual trail.
  8. Regarding the amount representing the security, the situations when the owner is entitled to execute this amount must be clearly stipulated in the agreement.
  9. The rental agreement must set a date on which space will be delivered (under the sanction of paying penalties for failure) and at the respective date to conclude a delivery-reception protocol regarding the state of the leased space,
    the inventory of goods, the records of the utility meters etc.)

  10. It is recommended that the signing the rental agreement to be made under the assistance of a lawyer, who will be certifying the presence and the identity of the parties and the content of the rental agreement; according to the Romanian law, a document certified by a lawyer has more probative value in front of the court, in case of an eventual litigation.


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