What Is a Lease Agreement?
A Lease Agreement is a legally binding document between two parties, the landlord and the tenant. The tenant is also referred to as the lessee, borrower, or renter. The landlord is sometimes referred to as the lessor. This contract usually involves the leasing of a residential or commercial property for a determined period of time. Certain components are usually present in Lease Agreements, such as the party names, property description, rental term, payment obligations including effective dates of any changes thereto, and default terms .
Often times, there are issues involved with the rental property which have an impact on the particular lease agreement. For example, if the property is an apartment located in a residential structure, there may be an association, the rules and regulations of which may have an effect on the responsibilities of the landlord or the tenant.
What Does It Mean to Notarize?
Notarization is a process in which documents are authenticated by an impartial third party called a notary public, or notary. Notaries are appointed on the state level and are authorized to oversee the signing of certain legal documents. The specifics may vary from state to state, but in the District of Columbia, for example, a notary must be of legal age and have naturalized in the District for at least one year. They must be impartial in witnessing the signing of legal documents, ensuring that they are aware of the nature of all transactions they approve and have the training and experience to properly authenticate those transactions.
The reason for notarizing legal documents is to prevent fraud, both in terms of people signing documents they aren’t authorized to sign and in using forged signatures. To do this, the notary typically requires two forms of photo identification—an official government-issued ID is preferred. The notary makes a careful comparison of the photograph to the applicant’s appearance, as well as making sure that the ID is not expired. They also compare the applicant’s signature with their signature on the ID. If the applicant is of legal age and in possession of a valid ID with a signature that matches the one provided during the notarization process, the notary approves and verifies the document with a seal and signature. This process gives the impression of validity and authenticity to notarized documents, and it gives the recipient of the document the proof they need that the notary verified its legitimacy.
Documents that may need to be notarized include wills, powers of attorney, marital agreements, real estate documents, adoption papers, and a plethora of other agreements.
Are Lease Agreements Notarized?
The legal requirements and common practices regarding the notarization of lease agreements can vary across jurisdictions. Generally speaking, most jurisdictions do not mandate that a lease agreement be notarized in order to be legally binding. However, landlords and tenants may choose to have a lease agreement notarized to add an additional layer of authenticity to the document.
Even in jurisdictions where notarization is not strictly required, leases that involve commercial properties or large sums of money may be subject to additional signing and witnessing requirements. Moreover, a notary may be requested if the lease agreement is executed in the presence of other important legal documents, as is sometimes the case with real estate transactions.
It is worth noting that notarization does not necessarily equate to higher enforceability. A lease agreement that includes missing clauses or key terms may still be held up in court as a legal document even if it is notarized. Therefore, tenants and landlords should focus on ensuring the lease agreement is well-written with all pertinent details and clauses rather than relying solely on notarization as a way to enforceability.
When Does a Lease Have to Be Notarized?
States have different laws regarding the execution of contracts and many require that certain types be made in a particular manner. Notarization laws are linked to laws that cover property. Laws governing the buying, selling, transferring, and leasing of real property, for example, often attach specific execution requirements, which include notarization. Some states require that all leases of more than one year be notarized to be enforceable, while others require only leases over a specific term. Other states don’t require notarization for any residential or commercial lease. If notarization is required, the full lease terms need to be stated in the lease. For example, in North Dakota, if a lease for real property is reduced to a writing and it’s for longer than a year, the law requires that it be signed and acknowledged in front of a notary public. A notary public watches individuals sign documents, then after checking their ID and other requirements, the notary signs and stamps the documents to indicate that they were signed in his/her presence. With this, a lease for apartment rental for two months would only require the signature of the landlord, tenant, and two witnesses (as is common, but state laws are different). In contrast, when a California general law applies to a lease of real property, if the lease is for longer than a year, it must be signed and notarized. In Pennsylvania, no leases are governed by a general law and all leases are enforceable if signed by all parties. However, if the lease is for longer than three years, it must be recorded if the owner hopes to enforce it against third parties (not those that are parties to the lease). Lastly, some states do not have laws governing notarization for lease agreements, so it’s best to check your specific state laws before deciding to have the lease notarized.
What Are the Advantages of Notarizing a Lease Agreement?
A properly executed agreement is always beneficial in guaranteeing all parties understand and agree to its terms and to prevent potentially costly disputes down the road. When negotiating an agreement, remember that you always have the right to alter any part of the agreement. As is often the case in contract law, if the parties agree to something contrary to the law, or if a provision of the agreement is unclear, a court will attempt to determine what the parties would have intended had they agreed to a lawful and clear agreement. As such, if a provision is not expressly prohibited by law, you may still be able to negotiate initialing and dating that provision, or even substituting it for an entirely different provision, if the other party is agreeable.
A notarized agreement is even better as it offers more robust protection for all parties. Specifically , if a party reneges on an orally-agreed provision or attempts to alter the terms of the contract following its execution, it will be much more difficult to change it after the fact if all parties agree to a notarized document, as the notarization requires a signatory to present valid identification confirming name and address, and attests that the same individual personally appeared and signed the document.
Similarly, for added peace of mind and to prevent fraud, consider having your lease agreement notarized. This essentially makes the lease a public record and reduces the chances that the other party alters the contract after it has been executed. Gaining assurance that the lesser has not altered your lease becomes especially important in the event of collection or eviction proceedings. Thus, the benefits of notarization are two-fold – it provides risk management through added legal protection and added assurance of authenticity.
How Can a Lease Agreement Be Notarized?
It is challenging to find someone that can notarize your lease agreement. In fact, the person is going to need to be physically present in the room to see you sign it. While this may be a nuisance, it’s also a security measure to ensure that the document is valid and that you’re acting of your own free will.
In most cases, you can find a notary public at a local bank. However, if you aren’t a member, the staff may not be able to help you. In that case, you can always try a local courthouse or other government building. You might also try your insurance advisor, as many work in conjunction with notary publics. It’s also worth checking online to see if there’s one in your neighborhood, as it’s possible that there’s a service that operates out of their home.
In addition to knowing where to go to get a lease agreement notarized, you need to know what you should bring. The good news is that—as long as you’ve already signed the original—you won’t need to bring anything special. All you need to do is meet with a notary public somewhere and show them your unsigned copy of the lease. As the notary public sees you sign the document, they’ll place a mark on the lease—indicating that it was signed by you—and sign it themselves.
NOTE: Not every state allows for a notary public to sign a document that is required to be notarized, so if your lease states otherwise you will have to find a different notary public.
What Are the Disadvantages of Notarization?
However, notarization is not without its potential issues. In some cases, having a lease agreement notarized can carry costs beyond the actual fee for the notary. There may be hidden fees for additional copies that are needed in order to satisfy state or local recording requirements. Another potential drawback is the time commitment. Depending on the state where the property is located, a notarized lease agreement must be drafted, and then signed in front of the notary public, and finally filed with the appropriate local entity. In addition, both the landlord and tenant may have to appear in person before the local governmental entity in order to get the notarized document filed.
Conclusion: Meeting Legal Requirements vs. Practical Concerns
As we’ve explored, the notarization of a lease agreement is not universally required by law. Instead, it is often dependent on state-specific legal nuances, the value of the lease agreement, and individual agreement stipulations. The decision to have your lease agreement notarized should be a carefully considered aspect of your overall contracting process and should not be overlooked as a decisive factor in its validity or enforceability. While notarization is often seen as a "seal of approval," the fact remains that many agreements are valid even without a notary’s signature. Many states have "anecdotal rules" about notarized documents, and these rules frequently do not have any legal teeth to them beyond their common practice. This means that, depending on where you are, your lease agreement could legally stand without notarization. Therefore, even though notarization is an excellent way to ensure that your agreement is registered with the state and confirmed by third-party verification, it may not be necessary.
Another consideration to keep in mind is the practical need for notarization, even if not a legal necessity. In general, landlords and tenants will need their lease agreement to be notarized before they can submit it for official record-keeping or for other oversight purposes . Even if your lease agreement would be legally binding without a notarized signature, your landlord may insist upon notarization as an added layer of certainty and protection. This is a perfectly acceptable and standard practice, and it helps safeguard both the landlord and the tenant from future potential issues with having an invalidated agreement. It is in the interest of the landlord and tenant alike to make sure that all avenues of protection are considered, and notarization is one common and effective way to achieve this.
Ultimately, whether or not your lease agreement needs to be notarized depends on a myriad of factors. Because of this variability, it is not possible to set firm guidelines about whether or not your lease agreement should be notarized. If you are in the process of signing a lease agreement, the best way to determine the exact requirements that your agreement needs to meet is to familiarize yourself with your state’s regulations. Once you have a thorough understanding of your state’s laws and customs, you can then make an informed decision about whether you should have your lease agreement notarized or not. Overall, keeping your state’s legal requirements in mind will help you reach the best possible outcome for your lease agreement in this regard.