Lease agreements: how to draw up and sign them with electronic signature

In an increasingly digital world, the formalization of lease agreements has been modernized thanks to electronic signature tools. This development not only facilitates the management and storage of documents, but also provides legal certainty and efficiency for both landlords and tenants. 

In this article, we will explore in detail what a lease agreement is, its models and characteristics, the keys to draft it with legal validity and the best practices for its digital signature. In addition, we will delve into the advantages offered by Tecalis Sign for real estate companies and individuals, with emphasis on automation and document management.

What is a lease agreement in detail

A lease agreement is a legal contract in which one of the parties, known as the lessor, assigns to another, the lessee, the use and enjoyment of a real estate or property (whether housing, commercial premises, any other real estate, vehicles or objects) in exchange for a periodic economic consideration. This document is essential to regulate the relationship between both parties and prevent future conflicts.

Also known as leases, lease agreements are formal and legally binding elements. They are described in the civil codes of most countries and must be signed by both parties with a set of rules.  

This document is vital and is renewed as established in its content and clauses because it establishes in writing the rights and obligations of both parties, providing legal certainty and a clear frame of reference throughout the term of the agreement, which can be extended (something that can be automated with electronic signature and document management tools).

Lease agreement templates

There are various models of lease agreements that are adapted to the needs of each situation. Among them, the following can be distinguished:

• Residential lease: This is the most commonly used model for residential leases. It establishes specific clauses to guarantee the security of the tenant and the protection of the property.
• Commercial Premises Lease: Here, the terms and conditions are tailored to the commercial and business needs. It usually includes clauses on the operation of the business, subleases and remodeling.
  Seasonal or tourist lease: Aimed at short-term rentals, where temporality and flexibility in terms are essential.
• Simple Rental Agreement Template: Ideal for situations where a clear and concise document is required, without too many clauses that complicate the process. This template is highly demanded by those looking for efficiency and transparency.
  

Each model must be adapted to the current legal context, incorporating clauses that ensure compliance with the obligations and rights of both parties. The versatility of the lease agreement models allows each agreement to be customized according to the characteristics of the property and the needs of the users.

Characteristics of a lease agreement

A well-drafted lease agreement should include several essential features:

• Identification of the parties: Complete data of the lessor and the lessee must be included, ensuring the veracity of the information.
• Detailed description of the property: Location, physical characteristics and any other information that allows to unequivocally identify the property that is the object of the agreement.
• Duration of the agreement: The period during which the contract will be in force is established, which may include renewal or early termination clauses.
• Rent and method of payment: The amount of rent, the frequency of payments and the accepted methods of payment are specified.
• Obligations and rights: The responsibilities of each party regarding maintenance, repairs and use of the property are defined.
• Termination clauses and penalties: The conditions under which the agreement may be terminated and penalties in case of breach are established.
• Applicable law and regulations: The agreement must be governed by current legislation, which provides legal certainty and reference in the event of disputes.
  

This structure ensures that the housing lease agreement or any other type of contract is complete, clear and adaptable to different situations, generating confidence in both landlords and tenants. Professionals in the real estate industry work with these types of contracts and agreements on a daily basis and can do it faster, safer and cheaper with electronic signature solutions.

How to draw up a legally valid rental agreement

Drafting a legally valid rental agreement requires compliance with a number of basic rules and attention to technical and legal details. The following are the key aspects that must be taken into account:

1. Review of current regulations: Before drafting the agreement, it is imperative to review local/national laws and regulations governing the leasing of real estate. This ensures that the contract complies with all legal requirements and avoids future legal issues.
   
   
2. Identification and verification of the parties: It is necessary to accurately include the personal and, if applicable, corporate data of the lessor and the lessee. Identity verification can be reinforced through the use of digital validation tools.
   
   
3. Thorough description of the property: Detail the exact location, physical characteristics, distribution, state of conservation and any other particularity of the property. This description is key to avoid misunderstandings and future claims.
   
   
4. Clear establishment of the economic conditions: The monthly rent, the form and frequency of payment, as well as any periodic adjustments or revisions should be indicated. Also include penalties for late payment and procedures in case of non-payment.
   
   
5. Maintenance and repair clauses: It is essential to determine who is responsible for repairs and maintenance, differentiating between natural wear and tear of the property and damage caused by misuse.
   
   
6. Use of electronic signature tools with AI writer of lease agreements: Currently, there are platforms that not only facilitate electronic signatures, but also integrate artificial intelligence modules capable of generating customized contracts. These tools allow:
   
   
• Generate a draft agreement: Based on the information provided, artificial intelligence suggests standard and customized clauses, adapting to current legislation and the user's specific needs.
• Verify legal validity: The tool performs a legal compliance analysis, ensuring that all clauses comply with regulations.
• Optimize the drafting and signing process: Once the draft is reviewed, it is digitally signed, which guarantees the integrity of the document and its authenticity.

The combination of proper drafting and the use of PropTech e-signature tools ensures that the lease agrement for housing or other property not only complies with the law, but is also managed in an agile and secure manner.

Best tools to create and sign your housing lease agreements

In the current context, electronic signature tools have revolutionized the way in which lease agreements are managed both by individuals between themselves and between real estate companies and tenants. These platforms offer multiple advantages: 

• Creation from scratch: They allow the preparation of the agreement using pre-designed templates and customizable layouts that adapt to the different rental contract models. The integrated artificial intelligence can suggest modifications and additional clauses that provide greater legal certainty.
• Sending and signing process: Once the document is generated, the platform facilitates sending it to the tenants for review and digital signature. The process is agile, avoiding travel and the need to print documents.
• Secure and centralized storage: All agreements are stored in a secure digital repository, facilitating future reference and retrieval.
• Automation and follow-up: Advanced platforms offer automation modules that allow scheduling maturities, renewing agreements and sending reminders to the parties involved.
  

Tools such as Tecalis Sign offer full regulatory support in the signing of lease agreements of all types in addition to being simple and convenient. To do so with this tool, the process would be as follows:

1. Document upload: The user uploads the template or the drafted contract to the platform.
2. Personalization: The specific data of the lessor, lessee, and the particular conditions of the property are adjusted.
3. Automatic generation: Artificial intelligence analyzes the contract and suggests improvements or additional clauses to optimize its legal validity.
4. Sending for signature: Once validated, the document is sent to the parties for digital signature through a secure link.
5. Monitoring and notifications: The platform sends automatic notices about expirations, renewals and any changes in contract conditions.
   

These functionalities make electronic signature platforms the best option to manage lease agreements in a comprehensive manner, guaranteeing efficiency, security and regulatory compliance.

Electronic signature for real estate and real estate: easy and automated lease agreements

The real estate industry and real estate itself benefit greatly from the digitization of their processes. Electronic signatures not only simplify the creation and signing of lease agreements, but also offer a comprehensive solution for document management.

The keys for real estate agencies and other businesses in the industry to be able to adapt to current regulations and customer expectations make it essential to digitize the process of signing lease agreements. Here we explain how and what it brings:

• Expiration scheduling: The system sends automatic alerts and notifications prior to the expiration of a contract, which facilitates the management of renewals and the prevention of non-compliance situations.
  
  
• Updating and tracking changes: Each modification to the contract is recorded and notified to the parties, ensuring that all updates are transparent and properly documented.
  
  
• Security and authenticity: The digital signature guarantees that the document has not been altered, offering a high level of legal certainty.
  
  
• Integration with management systems: Many platforms allow integration with ERP or CRM systems, facilitating the management of all contracts and documents in one place.
  
  
• Accessibility and centralization: Storing agreements in the cloud allows both real estate companies and real estate agents to have immediate access to information, improving communication and decision making.

These features make electronic signature platforms that offer automation modules, such as Tecalis Sign, an indispensable tool for the industry, improving efficiency and reducing the risk of errors or fraud.

Duration of a lease agreement: renewals and changes

The duration of a lease is a crucial aspect that must be clearly addressed to avoid future conflicts. Lease agreements usually establish a fixed period, which may vary according to the type of property and the agreement between the parties. However, it is essential to include clauses regulating renewals, extensions and possible modifications during the term of the contract.

Basic aspects of duration

• Fixed-term vs. open-ended lease: Most residential leases are set for a fixed term, usually one to three years. This should be done when drafting your lease before signing. However, in some cases, indefinite agreements can be established, in which the termination conditions are clearly stipulated.
  
  
• Renewal clauses: It is advisable to include a clause that allows the automatic renewal of the agreements or, failing that, to establish the procedure for the extension request. This can be automated thanks to digital signature tools. This avoids uncertainties and ensures the continuity of the contractual relationship.
  
  
• Rent review: During the term of the lease, it may be necessary to update the amount of the rent based on inflation or other economic factors. This revision must be contemplated in a specific clause, clearly defining the methodology for the calculation. In case you want to increase the rent without having previously established a clause in the initial agreement, an additional document must be signed informing of the increase (e.g. CPI), something that you can automate with applications such as Tecalis Sign.

Tips and aspects you should not forget

Successful rental agreement management depends not only on the drafting and digital signature, but also on taking into account a series of aspects that optimize the process. Here are a few key tips:

1. Verification of the identity of the parties: Before initiating any procedure, it is essential to corroborate the identity of landlords and tenants. This can be done through the use of digital verification tools integrated in some electronic signature platforms.
   
   
2. Periodic updating of the agreement: The legal and economic environment may change, so it is important to review and update the clauses of the contract periodically to keep it in line with current regulations and market conditions.
   
   
3. Use of customizable templates and layouts: Take advantage of simple rental agreement templates and predefined models, which can be adjusted to suit the particularities of each agreement. This streamlines the drafting process and ensures uniformity in the documents.
   
   
4. Integration with management systems: Especially for real estate and real estate companies, it is advisable to use platforms that integrate with other document management and CRM systems, facilitating the tracking and administration of all contracts.
   

These tips will help you optimize the process of drafting and managing your leases, ensuring that they are robust, efficient and fully compliant with current regulations.

How to sign free and legally binding rental agreements between individuals

The possibility of signing agreements with digital signature has democratized access to a secure and legal process, even for individuals who do not wish to incur additional costs. Thanks to RegTech platforms such as Tecalis it is possible to perform the signing process at no cost and in a completely legal way.

Process for digital signature between individuals

1. Platform access: Users register on an electronic signature platform. Tecalis Sign offers a free version that includes basic functionalities for the creation and signing of documents.
   
   
2. Uploading or creating and customizing the agreement: Once inside, the user can upload the document or use a simple rental contract template already predefined by Tecalis' AlisGPT. The tool allows editing and adjusting the specific data of each party and of the property.
   
   
3. Automatic review and validation: Integrated artificial intelligence reviews the content of the agreement, offering suggestions for improvement and ensuring that all legal regulations are complied with.
   
   
4. Sending the signature: The agreement is sent to the other party via a secure link, allowing both parties to sign the document electronically.
   
   
5. Confirmation and storage: Once signed, a digital certificate is generated that guarantees the authenticity and integrity of the document. This contract is securely stored in the cloud, accessible at any time for both parties.
   
   

This process is not only fast and efficient, but also provides the legal security necessary for the digital signature to have the same validity as a handwritten signature on paper.

Digital transformation has revolutionized the way rental agreements are managed. The possibility of drafting, sending and signing these contracts through electronic signature platforms not only speeds up the process, but also provides a series of advantages in terms of legality, efficiency and document control.

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