Worldlife
11-03-2007, 23:59 PM
Some of us posting here have stated previously that we prefer to have our tenancy agreements witnessed - largely to stress that they are a binding contract for the initial fixed term.
Others have suggested that there is no need for witnesses if the Term is less than 3 years.
According to the notes in latest tenancy AST from Lawpack the above simplistic "no witness" proviso is flawed.
Here are the reasons:-
The Agreement can be dated at any time after everyone has signed it. If the Agreement is signed and dated before the date on which the Term is to start, it is important that the signatures are properly witnessed
There is no need for the signatures to be witnessed, so long as the Term is less than 3 years, the Tenant is paying full market rent (and no capital sum) and the Term starts immediately; if one or more of these does not apply, and/or the Landlord is a limited company, the signatures must be witnessed. If the Landlord is a limited company, then either two directors, or a director and the company secretary should sign on behalf of the company. If the Tenant is a limited company this Agreement is not appropriate.
It seems to me Lawpack agreements and notes are extremely well considered and designed to help landlords avoid common pitfalls.
IMHO they well deserve the endorsement they have been given by National Landlords Association.
Others have suggested that there is no need for witnesses if the Term is less than 3 years.
According to the notes in latest tenancy AST from Lawpack the above simplistic "no witness" proviso is flawed.
Here are the reasons:-
The Agreement can be dated at any time after everyone has signed it. If the Agreement is signed and dated before the date on which the Term is to start, it is important that the signatures are properly witnessed
There is no need for the signatures to be witnessed, so long as the Term is less than 3 years, the Tenant is paying full market rent (and no capital sum) and the Term starts immediately; if one or more of these does not apply, and/or the Landlord is a limited company, the signatures must be witnessed. If the Landlord is a limited company, then either two directors, or a director and the company secretary should sign on behalf of the company. If the Tenant is a limited company this Agreement is not appropriate.
It seems to me Lawpack agreements and notes are extremely well considered and designed to help landlords avoid common pitfalls.
IMHO they well deserve the endorsement they have been given by National Landlords Association.