CONTRACT OF LEASE

CONTRACT OF LEASE – a contract by which one person binds himself to grant temporarily,
the use of a thing or the rendering of some service to another who undertakes to pay some rent, compensation, or price.

CHARACTERISTICS: (lease of things)
1. Consensual
2. Principal contract
3. Nominate
4. Subject matter must be within the commerce of man
5. Purpose should not be minimal
6. Onerous
7. Period is temporary
8. Period may be definite or indefinite
9. Lessor need not be the owner

RENT – the compensation either in money, NOT REGISTERED: provisions, chattels or labor, received by the lessor from the lessee

Requisites:
1. must not be fictitious or nominal otherwise the contract is considered essentially gratuitous
2. must be capable of determination
3. may be in the form of products, fruits, construction; as long as it has value

WHEN LEASE OF REAL PROPERTY IS REAL RIGHT
Generally, a lease of real property is a personal right.
Exceptions:
1. if it is for more that one year and to be enforceable it must be in writing
2. if it is registered with Registry of Property,regardless of its period

EFFECTS IF LEASE OF REAL PROPERTY IS NOT REGISTERED:

1. the lease is not binding on third persons;
2. such third person is allowed to terminate the lease in case he buys the property from the owner-lessor;
3. actual knowledge of existence and duration of lease, is equivalent to
registration;
4. stranger knows of the existence of the lease, but was led to believe that the lease would expire soon or before the new lease in favor of him begins, the stranger can still be considered innocent.

please help me to understand this contract of lease.
7. RENOVATION & IMPROVEMENTS: the LESSEE shall not make any alteration on the leased premises without first securing approval of the LESSOR. All improvements introduced by the LESSEE which is permanent in structure and would cause a major deviation from the model of the unit shall be left as is and will be part of the unit without cause reimbursement to the LESSEE.

8. REPAIRS & SANITATION: All repairs necessary to keep the leased premises, both inside and outside, including the entire appurtenance thereto, from deterioration in value or condition during the period of this lease shall be for the account of the LESSOR. Repair due to negligence will be for the account of the LESSEE. In addition, the LESSEE shall keep the leased property clean and in sanitary condition during the duration of this contract.

9. INJURY OR DAMAGE: The LESSEE hereby assumes full responsibility for any damage caused to the person or property or third person while still in any part of the leased unit. The LESSEE further binds itself to hold the LESSOR free and harmless from any claim for injury or damage. The LESSOR shall not be responsible for any failure of water supply, telephone services, electricity, or for any damages occasioned by or arising from plumbing, gas and other line from bursting, leaking, or destruction of any system, tank, water closet or water pipes in the above or about the leased premises.

WHEN LESSEE MOVING OUT FIND OUT AND DAMI PUKPUK SA WALLS AT MADAMI INIWAN NA BASURA.

QUESTION : LESSOR DEDUCT RE-PAINT AND CLEANING TO SECURITY DEPOSIT - IS THAT LEGAL???
PLEASE REPLY

My boss entered into a ‘lease-to-own’ (finance term) agreement with BDO Leasing. However, the lease agreements states that the property leased shall revert back to the lessor upon expiration of term. I called the agent and clarified that particular clause. He told me that that won’t be the case. That at the end of the lease term they will execute a deed of absolute sale in favor of us. My question is, shall I take his word for it or shall I push them to amend the wording of the lease agreement. Thank You!