Author Topic: When is a lease legally binding?  (Read 849 times)

expectopatronum

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When is a lease legally binding?
« on: July 14, 2015, 09:33:00 AM »
Story: We have tenants that would like to move into the property in 1.5 weeks - meaning my husband and I need to move this weekend!

The tenants are approved, and our realtor is working on getting the signed lease, security deposit, and 1st month's rent. The issue is that we'd like to go ahead and sign a lease on an apartment, start packing, and book movers, but we obviously don't want to waste our money / be locked into moving if for some reason the lease for our house falls through. The other reason it is time-sensitive is that the apartment has one of those annoying "look and lease" specials for $400 off rent. They are a new complex, so I think they are trying to fill it up and get it going. We are already receiving a rebate, 1 month free, AND all fees waived due to some other specials which should combine. There's not really a big risk of them not having units available.

Question: Do we wait until we have all 3 items in hand before proceeding with our move, or would we be OK once we have the lease signed by all parties (legally binding them to move in, to security deposit, etc)?

Thanks, MMMs!

Fishingmn

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Re: When is a lease legally binding?
« Reply #1 on: July 14, 2015, 09:37:35 AM »
I'm not providing legal advice but the lease should be binding when it is signed and delivered to all parties. Normally, when the lease is executed the tenant provides the security deposit but doesn't provide first month's rent until move in takes place. The lease is valid though as soon as it's signed/delivered.

I would wait until I had those first 2 (lease/sec dep) if you are concerned about it.

zephyr911

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Re: When is a lease legally binding?
« Reply #2 on: July 14, 2015, 12:53:53 PM »
I'm not providing legal advice but the lease should be binding when it is signed and delivered to all parties. Normally, when the lease is executed the tenant provides the security deposit but doesn't provide first month's rent until move in takes place. The lease is valid though as soon as it's signed/delivered.

I would wait until I had those first 2 (lease/sec dep) if you are concerned about it.
+1
Look at the lease form you're using, but generally speaking the rent for each month (or whatever period is used) is due the first day of that period. Since you're generally signing a lease before the day it takes effect, rent is not due at that time.

(It would be possible to write the lease differently, but it's rare)
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expectopatronum

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Re: When is a lease legally binding?
« Reply #3 on: July 15, 2015, 03:40:15 PM »
Thanks! We got the lease signed today as well as the security deposit!

Looks like we'll be moving and able to free up some extra cash every month, not to mention cutting the gas expense drastically by moving 22 miles closer to work! I'm so please that we were able to get the rent we asked for. A neighboring house has been on the market almost 100 days now and is having trouble.