What is a Notary Rent Agreement?
Typically, a rent agreement is an un-stamped and notarized paper signed by both the landlord and tenant. However, in certain cases it may be necessary to have the rent agreement registered as a deed in order to protect your investment or in the event of a dispute.
A notary rent agreement is a rent agreement drafted by either a lawyer or the landlord. This agreement is then taken to a public notary for verification of identity of the parties signing it. The principal function of the notary public is to identify the subject matter of the document , witness that the parties or their appointees are indeed the effector ones to execute the document in question; and to observe the fact that the parties freely wish to proceed with the execution of the document. The public notary will then give his/her signature and seal of his/her official office on the document thus certifying the authenticity of the parties executing it.
Notarization is also a means of authenticating a document. It renders the document genuine, valid, and enforceable. There are three types of notarizations available to you:
You may wish to notarize your rent agreement in the event that you suspect the tenant may not pay annual rental payments on time or at all. In other cases, a notarized rent agreement may be desired in order to avoid having to engage in legal fees to acquire an eviction notice. Notarily of the rent agreement essentially protects you should the tenant wish to withhold rent or escape responsibility of the investment.
Advantages of Notarizing a Rent Agreement
Adding the signature of a Notary Public to a rent agreement offers advantages to both the landlord and tenant. First and foremost, having the rent agreement notarized adds to its credibility. It will be seen as an official and legal document and the terms laid out in the agreement will be more likely to be upheld. Having a rental agreement that is notarized creates an official record of the lease agreement to be used in defending the rights of the landlord or tenant.
Having the signing of the rent agreement certified by a Notary Public might prevent litigation in the event that an ensuing dispute over terms arises. Even if it still does reach court, it is more likely that the decision will favor the party that had the rent agreement notarized. This is because the signatures on a notarized rent agreement have been verified, while there is no proof that the signatures on a simple typed rent agreement were made by the people whose names are signed.
Finally, when a rent agreement is notarized, it simply comes off more professional. No person wants to deal with another who has a ripped up and stained energy drink can sitting in his or her car. While a handwritten rent agreement is fine, the contract is far more believable when it is professionally typed up and then notarized, even if there are no other specific advantages.
Easy Guide to Notarize Rent Agreement
The process of notarizing a rent agreement is relatively straightforward but requires attention to detail. Here’s how it can be done in just a few simple steps:
1. Preparing the document
Prepare the rent agreement using the digital template shared earlier in this article. Remember that each signatory must sign the rent agreement. They will be required to attach their photograph, as well as their identity proof in notarized rent agreements. Each person’s PAN card or Aadhar card should be a photocopy of the back and front to ascertain all details properly.
2. Finding a Notary
Notaries are easy to find. You may check in your nearby area for a local notary, or simply check Google Maps for the closest one. In addition to specific local notaries, many banks also have associated notary services. So, look for the bank nearest to your house to make the notarization process easier.
3. Signing in front of the Notary
You don’t have to sign the rent agreement until you’re in front of the notary. The notary will check the agreement and ask you to put the page number on each page. You need to fill page numbers then you should sign on each page. In addition, they will also ask you to put the date of signing, so avoid pre-dating the document.
4. Attaching required documents
After signing, the notary will ask for the required documents to be attached. Normally, a good notary will ask for your original Aadhar card, PAN card and Copy of Passport(VISA or Green-card holders). Keep in mind that these documents should be verified with originals.
5. Paying Fees
Notary services are chargeable, but each notary has a different fee structure. Some may charge per stamp on the document, while others may have a fixed charge based on the document size. Discuss the payment with each notary during your initial consultation to determine which one is the most cost-effective option for you.
6. Document Hand-Over
The notary, after verification of all documents, will put stamp paper and show the details available on the stamp paper then the other signatory will also need to show relevant IDs to check his/her credentials then notarized rent agreement will be handed over to you.
Legal Aspects of Notarizing Rent Agreement
Aside from any additional requirements put forth by a state’s Notary Public Act, the Notary Public Code specifies the following requirements:
Verification of Identity
The individual must be given an opportunity to make a statement and provide the Notary with the information necessary to identify him or her.
Example: When a parent accompanies a minor, the Notary should ask the minor his or her full name and address, in addition to the parent’s.
Witness Requirements
Sometimes, the parties to a rent agreement must sign it in the presence of a witness. In some states , a witness is required by law. A witness must:
•Be competent, which means that he or she is of sound mind and capable of understanding what is being asked of them
•Have no direct interest in the transaction at hand
•Understand the importance of being a witness
•Be identified by someone who is known to the Notary Public
•Sign their name in the appropriate space on the rent agreement
•Make a statement that they understand the nature of the signing
It is a good idea for Notaries to always have an extra space for a witness signature along with a witness statement.
Common Pitfalls in Notary Rent Agreements
One of the most common mistakes people make when it comes to notarizing rent agreements is a lack of clear communication with their landlord or tenant. Too many parties skip over this crucial step during the process. If you don’t clearly understand the terms of your agreement, ask for clarity before you go any further. You can’t hold your landlord to a contract if you don’t understand it. The same is true for landlords that have qualified and experienced legal counsel during this process.
A major piece of advice we give to our clients is to never, ever sign a rental agreement or lease without having a qualified lawyer review it. It’s a legal document that has binding effects, and a notary will not take responsibility for this. The terms of the contract can have far-reaching implications, including financial and tax implications. Skipping this important step could come back and haunt you later.
In addition to not understanding the agreement you’re signing, another mistake is not making copies of all notices you send to or receive from your landlord or tenant. Many disputes arise from companies or individuals claiming "we didn’t get a notice," yet official government records state otherwise. As the person receiving the rent deposit, your bank might refuse responsibility in a situation where you are asking for a rent deposit returned to you.
Landlords and tenants also forget to check their state for prior renters’ rights. All states have written laws on this, but most people don’t take time to learn what they are. Ignorance is *not* bliss, especially when you are faced with a dispute. Some of the most contested issues in these agreements are security deposits, rent increases, repairs to the unit, and disclosures.
Another common pitfall is relying on a template from the Internet as your own. You must be careful with this because you need to be certain the template complies with the law of your country and state. Every word in a rental agreement is of the utmost importance. If you miss any important terms, you could be held responsible.
We also recommend getting a home inspection before signing an agreement. Even if the home seems perfect on the surface, there can be hidden issues that you might not notice. You need to protect yourself with a signed addendum that says you aren’t responsible for any issues that are found.
Carefully reading a rent agreement is often overlooked, but it’s necessary to do so. For example, if you signed the rent agreement on June 1st with the terms starting on June 30th, and you pay your first month of rent, you don’t owe rent for the rest of the month. If the landlord gave you possession before the start of the term, they are not entitled to rent for the intervening period.
If the landlord had you give them a substantial amount of money as a deposit, your rent is typically rent inclusive (unless the terms say otherwise). If you have to pay your first month’s rent but you weren’t expecting to, you have a case to get that money back. You may be entitled to damages, especially if that money was substantial.
It’s essential to keep a record of all of your key communications throughout the process. Not all agreements are honored, and you need to be able to track the relevant dates so you don’t miss any deadlines in your country’s and state’s rules.
Notary Rent Agreement FAQ
I have a lease agreement. Is that good enough?
Answer: It’s best to have a notary rent agreement in addition to the lease. Your notary rent agreement and your lease agreement can work together to protect your rights. A lease agreement alone does not state who should receive any funds. It also does not specify the payment amount if your tenant occupies during repairs. A notary rent agreement covers these items and others.
I don’t need a notary rent agreement. I can charge my tenant whatever I want.
Answer: Yes, you can legally charge your tenant anything you want. But your tenant has the right to pay what he or she believes is fair in lieu of your posted rates. The rates you post should be what you expect to charge for each service. However, you have the ability to adjust your prices as needed. Keep in mind that each state has mandatory fees for certain state-specific services.
I have a fee schedule, so I don’t need a rent agreement.
Answer: Your fee schedule includes your fees for services but not who is entitled to receive the money. Your fee schedule is not a legal agreement between you and your tenant. A notary rent agreement is a legal contract that outlines your fees and other important information such as who receives the funds and where they go. Not having a written agreement can lead to confusion and disagreements that result in no one getting paid.
I’m charging my tenant a fixed fee. No need for a notary rent agreement, right?
Answer: You do need a notary rent agreement. Even if you’re going to charge your tenant a specific dollar amount , you may still have added fees for things like travel. You might still need to cover your time away from your office if you have one. In which case, your tenant would owe more than is showing on the invoice. A notary rent agreement sets expectations up front.
My fees are listed in my service agreement, so I don’t need to use a notary rent agreement.
Answer: A service agreement does not indicate who will receive payment for your services. A service agreement is not a legal contract between you and your customer. This means anyone can pay for your services. If the marriage certificate is paid for outside of your service agreement, then the county clerk owes the fee to the person who paid for it. You may have to wait to be reimbursed.
I’m not charging my tenant overtime for waiting in the lobby. I don’t need a notary rent agreement, right?
Answer: You need a notary rent agreement. Your fees include travel and waiting time. Your tenant may ask you to waive the waiting fee if you leave the lobby temporarily because you are visiting an office nearby. Even if that is the understanding between you and your tenant, whoever pays is owed the full fee.
My cashier takes care of everything for me. I don’t need a notary rent agreement because everything is handled through the office, right?
Answer: Your office personnel will receive the funds. But if the notarization takes longer than expected and you need to charge overtime, the tenant will not know how much they owe until after they receive the invoice. Without a notary rent agreement, tenants can pay for only the known fees and assume you will collect the remainder at a later date. This agreement can be emailed to your tenant in advance.