If you are a homeowner or investor who is buying rental property for the first time, it is easy to download a rental agreement over the Internet to use it for your real estate. A quick search for “texas lease download” in writing this article yielded 1.4 million visits. Rents are all over the Internet and we have seen that they are often used. What is annoying is that these leases often do not contribute to the most basic protections of the Texas Association of Realtors residence. The TAR leasing contract, known to most agents, has been tested and optimized over the years to create a solid base for your rental properties. We came across a whole series of situations where the leases were hastily downloaded by an investor who wanted to save a few dollars, but when the pressure came to put pressure on the courts, they realized that the lease they had had no value and that trying to save a few dollars in advance cost them a lot , much more in the long run. The obvious problem with a bad lease (or a totally invalid contract) is the lawsuits. You will never win a lawsuit based on a poorly written rental agreement containing an illegal or invalid language, that is not signed or that does not have the special protection you need in this action. Legal actions are much more expensive than the price when a lawyer negotiates a lease or instructs a real estate agent to manage the property. Another big problem we see with this type of rental is that the owner decides he wants to sell. Investors will often sell their real estate at some point for a variety of reasons – that the lease survives the sale and you have to provide copies to the buyer. The new buyer is bound by the terms you have set out in the lease, so you could link them to something that is illegal or unenforceable.
If the buyer does his due diligence, he can withdraw the agreement and you will lose the sale. Even if they buy it, you can create a situation in which you can be put back into the mix during a lawsuit, since you were the one who originally established the lease and created the problems that the new owner faces. Being sued on a property you no longer own is not an ideal situation and a good use of your investment dollars. The other way to write a strong lease is to talk to a lawyer and have them write a form for your use. Many rental contracts available on the Internet will say that they were created by a lawyer, but you should always be sure that it is created with your situation and real estate in mind and (we see this mistake made a lot) it is created by a state lawyer in which you are going to rent. A lease in Pennsylvania is very different from a Texas lease because the laws are very different in the two states. We also advise you to talk to a real estate lawyer – a divorce lawyer can write a lease, but you may not have the experience and knowledge to write a strong lease that will protect you in the future. If you have a lawyer who writes your leases, make sure you have them checked and updated regularly so that you remain protected in the event of changes in the laws. The problem when downloading a rental is also whether you have received an updated rental or not. The Internet is a huge archive, and when they download something that was written in 1999, it won`t well keep the law in its current form in 2016. Laws change over time and the use of something that is obsolete or does not cover the newer laws can certainly put you in hot water.