authorised guarantee agreement residential lease

What... Legal advisers are there to help you understand your rights, and to use the law to solve your problem. What is an authorised guarantee agreement (AGA)? However, once the assigned lease ends or the assignee ceases to be a tenant, the assigning tenant is released from the AGA. Whether you are employing people, signing contracts or dealing with a dispute, good legal advice can help... Whatever your situation, it helps to understand the legal issue you're facing and what kind of advice you might need. Tenants can seek to agree with the landlord that an AGA will only be necessary if the above factors are relevant. There is a common misconception that selling a commercial lease will relieve the seller of liability for rent and other obligations under the lease. Introducing PRO ComplianceThe essential resource for in-house professionals. What Is A Pre Action Protocol In Civil Litigation? These will be sent to the Assignor who in turn will send them to the Assignee’s solictors. Hi 2.5 years ago, I sold a leasehold business and assigned the lease to the new people, I had to sign an AGA. Understand your clients’ strategies and the most pressing issues they are facing. If the original tenant enters into an AGA, however is likely to be dissolved as a limited company in the near future, would a further personal sub-guarantee provided by the directors of the company be a breach of the anti avoidance provisions of section 25 of the Landlord and Tenant (Covenants) Act 1995? These cookies do not store any personal information. ), Mistake in Contract Law (What is it & What are the Effects? What is an Authorised Guarantee Agreement (AGA)? Out of these cookies, the cookies that are categorised as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. It … A tenant providing an AGA on an Assignment should seek to ensure that the AGA does not include any holding over period in order that the tenant has certainty as to when their liability under the AGA will come to an end. by Practical Law Property. Did you know that you may end up having to guarantee the performance of the incoming Tenant, possibly for years to come? Dress Codes: Can You Force Female Staff to Wear Bras to Work? Referencing the Code for Leasing Business Premises in England and Wales 2007, tenants can cite that AGA’s should only be necessary if the assignee is less financially credible than the assigning tenant (for example having a lower income or poor credit history) or is a resident from abroad. An AGA is an agreement which places an obligation on an outgoing tenant to guarantee the performance by the new tenant or "Assignee" of the tenant covenants contained in the lease. To access this resource, sign up for a free trial of Practical Law. Most landlords will require that the tenant signs the AGA before the landlord consents to the tenant’s assigning the lease. Lawble is a leading legal resource aimed at supporting people and businesses by providing reliable information and resources that can save business owners time and money. For example, this form would be used to rent out an apartment or basement suite. Landlords can only legally require a tenant to enter into an AGA if it is an expressed condition of assignment in the lease. A co-signer is equally as liable for a lease as the tenant. Similarly, tenants who are already in lease agreements with AGA provisions, must ensure they appreciate their responsibilities and rights as well as circumstances which could lead to their release from the AGA. Please contact customerservices@lexology.com. The concept of the Authorised Guarantee Agreement (AGA) was introduced by the Landlord & Tenant (Covenants) Act 1995 to implement changes to the law on Privity of Contract on the Assignment of a commercial property lease.. An Authorised Guarantee Agreement (AGA) is an agreement that an outgoing tenant enters into with the landlord when it assigns its lease to a new tenant. Last updated: 12th August 2019 Authorised guarantee agreement. To use this template, simply download for free, edit lightly (most edits required are for names and addresses) and ask the guarantor to sign. Dividends to shareholders - when and how can they be paid? This guarantee only lasts until the assignee assigns its interest in the lease – upon such subsequent assignment the guarantor’s AGA falls away. When a landlord is insisting on including an AGA condition in a lease tenants should try to negotiate that the leases expressly states that an AGA can only be required in “reasonable circumstances”. In a policy paper published on 18 February 2020,... Much was made in the media last week about this week’s ruling in Germany giving employers the right to enforce specific dress codes on staff.... Have you considered a bad weather policy? ", © Copyright 2006 - 2020 Law Business Research. AGAs are commonplace in leases of commercial property but it is important that tenants understand the implications of them when the lease is initially granted and on any subsequent assignment. AGA’s can be complicated and vary between individual lease agreements. It's that simple! Employers – Implement a Bad Weather Policy, Driving Without Road Tax (Will I Be Fined? Should you be in a situation where you have already signed an AGA and the landlord is requesting that you meet obligations which have not been met by the assignee, seek legal advice as soon as possible to determine whether you are liable for the specific obligation or have a case for release from the AGA. There are certain circumstances whereby an outgoing tenant can be released from an AGA, as well as risks if tenants are unaware of their accountability when entering into an AGA. Tenants are not legally bound to sign an AGA if the lease states that the landlord can require one “where reasonable” although tenants may choose to include one along certain terms as part of negotiating the assignment of the lease with the landlord. A real estate personal guarantee allows a tenant to have someone else, the “co-signer” or “guarantor,” guarantee a lease in the event the tenant does not comply with its terms. These cookies will be stored in your browser only with your consent. If possible, it is advisable to avoid signing a lease which expresses AGA’s as a condition of re-assignment. This article explains the key terms of an AGA and gives practical pointers on how a tenant can improve its position during a negotiation. That agreement is for use in relation to the assignment of the balance of a lease of commercial premises to another tenant, who is called “the assignee”. It is commonplace for Leases to insist on an Authorised Guarantee Agreement when assigning the Lease from one occupier to another making the previous owner of the lease financially liable if the new occupier defaults. ), Fulfil lease obligations if the assignee fails to do so, for example making repairs to the property, maintaining the garden, replacing fire alarm batteries etc. After 1 January 1996 when the 1995 Act came into operation, the change in the law introduced what is known as an Authorised Guarantee Agreement, or “AGA” for short. special form of guarantee that specifically applies to leases granted from 1996 onwards An Authorised Guarantee Agreement is needed for the assignment of the remainder of the term of a lease of business premises to a new tenant – “the assignee” – if the lease is classed as a new lease under the Landlord and Tenant (Covenants) Act 1995. Already registered? Questions? Effectively, AGA’s hold the assigning tenant responsible for the assignee should the latter fail to meet terms of the lease. The issue in question was how a guarantor can guarantee an outgoing tenant’s obligations in an authorised guarantee agreement (AGA) without falling foul of the Landlord and Tenant (Covenants) Act 1995. Authorised Guarantee Agreements (AGA) were introduced by the Landlord and Tenant (Covenants) Act 1995 (the 1995 Act) and sought to strike a balance between the uncertainty of liability of a tenant who assigns a lease and the protection of the landlord if the tenant assigns to a party who is not particularly acceptable to the landlord. Therefore, if the tenant does not pay rent or breaks the lease for any other reason then the person who co-signed, the “guarantor,” would be required to pay for any unfulfilled obligations. Now, and assuming completion of an AGA, the first tenant on assignment only remains liable for the duration of the first assignee’s interest in the tenancy. Points for tenants to consider on an Assignment. It is mandatory to procure user consent prior to running these cookies on your website. A rent guarantee agreement brings in a guarantor on the same basis as the tenancy agreement. But opting out of some of these cookies may have an effect on your browsing experience. 01January/2014 - AGA - Authorised Guarantee Agreement - Rent Deposit. However, if you are entering into a lease of a commercial property it is likely that the lease will include provision that the outgoing tenant enters into an Authorised Guarantee Agreement or "AGA" if the lease is sold (assigned) to a third party. 12 th January 2015. It was introduced by section 16 of the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) to appease landlords whose position had been substantially reduced by the abolition of original tenant liability. So, you decide to move on from your current Premises. BUT.. An AGA also provides the landlord with the option to insist on the outgoing tenant taking on a new lease (on the same terms o… Please read our full disclaimer. The first agreement provided for that in case the tenant wants to assign the property, he will enter into an authorised guarantee agreement (AGA) with the landlord. Free Practical Law trial. If the Assignee fails to perform the tenant covenants in the lease (which include payment of rents and repair obligations) the AGA allows the landlord to pursue the outgoing tenant under the terms of the AGA. Authorised guarantee agreement A form of guarantee which may be given (as a condition of the landlord's consent) by an outgoing tenant of its assignee's obligations under the lease. Tenants and their guarantors are automatically released from liability to the landlord when a lease is lawfully assigned to a third party. A “new” tenancy is generally one that was granted after 1 January 1996. The Landlord and Tenants (Covenants) Act 1995 and Authorised Guarantee Agreements. If the Assignee fails to perform the tenant covenants in the lease (which include payment of rents and repair obligations) the AGA allows the landlord to pursue the outgoing tenant under the terms of the AGA. If you do agree to an AGA it is equally important that you carefully consider all of the terms and obligations it contains. Authorised guarantee agreements (AGA’s) were introduced under the Landlord and Tenant (Covenants) Act 1995 in an attempt to conciliate the potential risk to the landlord if the new tenant proves unreliable and confusion over the outgoing tenant’s liability. Coronavirus Job Retention Scheme (How to Claim), New food labelling guidance issued ahead of Natasha’s Law. The guarantor provides a promise to pay rent unpaid by one or more of the tenants and also for any loss or damage caused by the tenant. If the assignee has equal or improved financial credibility to the outgoing tenant then it may be possible to get the landlord to accept a rent deposit from the assignee in place of an AGA. When a ‘new’ lease for the purpose of LT(C)A 1995 is lawfully assigned the tenant is released from the tenant covenants. Simply put, an AGA’s is a type of legally binding guarantee used to protect a landlord’s interests in cases where the tenant sells or assigns their lease to a new tenant. The next generation search tool for finding the right lawyer for you. Authorised Guarantee Agreements (AGA) were introduced by the Landlord and Tenant (Covenants) Act 1995 to find a balance between the liability of a tenant assigning a lease and the protection of the landlord (if the tenant assigns the lease to a party who is not favoured by the landlord). The New UK Points-Based Immigration System. This is an abbreviation for Authorised Guarantee Agreement. This is normally any lease … When the lease expires the assigning tenant is released, even if the assignee renews the lease with the landlord. You also have the option to opt-out of these cookies. An authorized guarantee agreement (AGM) is an agreement that an outgoing tenant enters into with the landlord when he hands over his tenancy agreement to a new tenant. In cases where you are looking to assign your lease and the landlord is requesting an AGA as part of the negotiations it is imperative that you take legal counsel before signing one in order to determine whether it is the best way to proceed and protect yourself from unfair terms. Necessary cookies are absolutely essential for the website to function properly. You may have to! Related Content. When a tenant assigns its lease to a new tenant (assignee), the landlord may require the tenant to enter into an AGA with the landlord, as a condition of giving its consent to the assignment of the lease. The guarantee will only endure for so long as the assignee remains the tenant. We'll assume you're ok with this, but you can opt-out if you wish. Free trial. If the lease being assigned is a business lease which has security of tenure under the Landlord and Tenant Act 1954, an outgoing tenant providing an AGA must bear in mind that the AGA may continue beyond the end of the contractual term of the lease. Businesses need legal advice for many reasons. The assigning tenant is also released from the AGA if the assignee in turn assigns the lease on to a new tenant except in cases where the assignment is an excluded assignment (not permitted by the landlord or lease terms). Authorised Guarantee Agreements: Tenants beware! A practice note looking at the various issues involved when a new lease under the Landlord and Tenant (Covenants) Act 1995 is assigned. Aside from the various ways in which a lease can be considered “ended”, there are additional conditions which would lead to the release of the assigning tenant unless expressly excluded in the AGA. However, this release is qualified, as the landlord has the option to require the outgoing tenant, on assignment, to guarantee the obligations of the new tenant (the “assignee”) by way of an “Authorised Guarantee Agreement”, commonly referred to as an “AGA”. "I am a big fan. Points tenant should consider when negotiating terms of a lease. A guarantor is unlikely to be happy to guarantee the rent of tenants he or she does not know (such as in the case of parents guaranteeing the rent for a property in which a child lives with other friends). German Residential Rental/Lease A Residential Lease Agreement is used when a Landlord wishes to rent or lease property to a Tenant for residential and possibly home-based business purposes. The AGA contains optional wording which can be included where there is a guarantor for the outgoing tenant who is giving a sub guarantee (also known as a GAGA). Lawble is a leading legal resource aimed at supporting people and businesses alike by providing reliable information, legal resources and links to leading and reputable legal service providers. However, under an AGA, an outgoing tenant can guarantee some or all of the obligations of an incoming tenant. An AGA also provides the landlord with the option to insist on the outgoing tenant taking on a new lease (on the same terms of the existing lease) if the new tenant defaults and the existing lease is disclaimed. Keep a step ahead of your key competitors and benchmark against them. The Code for Leasing Business Premises in England and Wales 2007 provides that an AGA should only be required by the landlord if the Assignee is of lower financial standing than the outgoing tenant or if the Assignee is registered or resident overseas. It is important to try and avoid signing leases with AGA conditions and if the landlord is insistent then tenants must check specifically what is included or excluded in an AGA before signing. Power up your legal research with modern workflow tools, AI conceptual search and premium content sets that leverage Lexology's archive of 900,000+ articles contributed by the world's leading law firms. … An AGA is an agreement which places an obligation on an outgoing tenant to guarantee the performance by the new tenant or "Assignee" of the tenant covenants contained in the lease. As outlined above, depending on the wording of the lease and the financial standing of the Assignee the tenant may seek to persuade the landlord to dispense with the requirement for an AGA or to impose a time limit on the outgoing tenant's liability under the AGA. If the lease continues beyond the end of the contractual term this is known as "holding over". Without the inclusion of the reasonableness wording in a lease a landlord may be able to insist that the outgoing tenant enters into an AGA as a condition of the landlord giving consent to an assignment, even if the covenant strength and financial standing of the Assignee is greater than that of the outgoing tenant. So if the tenants are jointly and severally liable, the guarantor will be as well. Alternatively a tenant can seek to negotiate that any lease expressly states that an AGA will only be provided if at the date of assignment it is "reasonable in the circumstances". It can either be a separate document or included in a licence to assign, but must be in writing and signed by the guarantor to be enforceable. Where a landlord requires a tenant to enter into an authorised guarantee agreement (AGA) on an assignment, which is permitted under section 16 of the Act, the tenant will remain liable until the assignee is lawfully released from the tenant covenants in the lease. The information is very useful indeed. Always take professional legal advice. If … This category only includes cookies that ensures basic functionalities and security features of the website. Sign in to your account. Accordingly, Brolly has entered into such an agreement. Extreme weather conditions have had a massive impact on businesses with some employees being... 3 minute read We also use third-party cookies that help us analyse and understand how you use this website. When that first assignee assigns, the first tenant bows out and the first assignee … A standalone authorised guarantee agreement (AGA) for use with a lease which is a new lease for the purposes of the Landlord and Tenant (Covenants) Act 1995. An authorised guarantee agreement, is the agreement of the seller to guarantee the performance by the buyer, who will become the new tenant e.g. It is therefore essential that tenants fully understand the implications, risks, and potential negotiating platforms associated with AGA’s before signing any agreement to undertake one. This Q&A considers, in the context of assignment of a lease with an authorised guarantee agreement (AGA), if the original tenant enters into an AGA but is likely to be dissolved as a limited company in the new company, would a further personal sub-guarantee provided by the directors of the company be a breach of anti-avoidance provisions. if the buyer as new tenant does not pay the rent, the landlord can come after the seller. If you would like to learn how Lexology can drive your content marketing strategy forward, please email enquiries@lexology.com. Tenants who have signed a lease with an AGA condition are sometimes able to persuade the landlord that providing an AGA is unnecessary through providing a reliable assignee. Some common examples of provisions an AGA could demand of the assigning tenant include the following: Taking on the role of guarantor puts you at risk of considerable financial costs and time commitments if the assignee proves to be unreliable, particularly if you have no legal commitment from them to meet the lease terms. ABS Structures - What are they and why do they matter to me? The Food Standards Agency (FSA) has issued detailed guidance for companies on new labelling laws coming into force in 2021. If your landlord is insisting on including an AGA in the lease agreement you should seek legal advice to determine whether or not your sign as well as to help understand and potentially re-negotiate the terms of the AGA before you become legally bound. Depending on the strength of the tenant's negotiating position a tenant may seek to insert a time limit as to their liability under an AGA. This website uses cookies to improve your experience. Obligations will vary in different leases and AGA’s, Re-take on the lease, or take on a new lease, for the remainder of the term if the assignee falls into bankruptcy, Alterations to the lease which could prejudice against the tenant, In cases where there is a co-guarantor, the release of that co-guarantor can necessitate the release of the assigning tenant. It is well established that the disclaimer of a lease does not automatically bring a third party's guarantee of the tenant's obligations to the landlord to an end (Hindcastle Limited v … Spending time understanding what you... A new UK points-based immigration system for work visas is to apply from 1 January 2021. Or if the buyer as new tenant does not make good any repairs, again the landlord can come after the seller. The importance of compliance with the Civil Procedure Rules, Lease guarantor may not also act as guarantor for assignee, Guarantors' ongoing obligations no longer assured, Why some lease guarantees are not enforceable, You are not alone in a default - Third party interests in commercial leases, Acquiring commercial property in the Channel Islands: a brief comparison with England. Any time limit agreed should be expressly stated in either the lease or, if the time limit is agreed when consent to an assignment is given, the AGA in order to protect the tenant's position on a subsequent assignment. It is usual that an AGA lasts from the date the outgoing tenant sells their interest in the lease to the Assignee until that Assignee has validly disposed of their interest in the lease to a third party or until the term of the lease comes to an end (whichever is sooner). A lease that creates a “new” tenancy may include an agreement between the landlord and the tenant specifying the conditions under which the landlord could validly refuse consent to the assignment of the lease. A rent deposit is a sum of money that is provided by the tenant to the landlord as security for payment of the rent and other moneys per the covenants in the lease. Should the landlord and assignee negotiate changes to the legal state of the lease, such as an extension of the lease duration, it would legally amount to a surrender and re-grant of the lease and so release the guarantor from the AGA. If the assignee were to disappear or file for bankruptcy then the assigning tenant would need to take on retake the lease. AGA’s are not subject to a set form, so the obligations of an assigning tenant depend on what is expressly provided for in the AGA and will vary. This website uses cookies to improve your experience while you navigate through the website. Driving without road tax is an offence in England and Wales. The rules governing pre-action conduct can be found in the pre-action protocols and the Practice Direction on pre-action conduct and protocols (PDPAC). © Prof Services Limited | All rights reserved |. Holding over can continue until such time as either the landlord or tenant serves a notice on the other to either end the lease or enter into a new lease. Contact us. Should you fail to meet your obligations under the AGA you could be charged fee’s or taken to court by the landlord to face fines or even criminal prosecution. In the context of an AGM, the outgoing tenant (in charge of mission) guarantees the execution of the agreements by … This leaves you in the strongest position to refuse to sign or negotiate the terms of an AGA should you need to re-assign the lease before it ends. Fill in your details and we'll stay in touch with email updates on personal law matters. Become your target audience’s go-to resource for today’s hottest topics. The law is that if a person stands as a guarantor for future payments of assignees, he is liable for all duration of the lease. It is suggested that for smaller tenants a landlord should accept a rent deposit from the Assignee instead of an AGA from an outgoing tenant. Tenant responsibilities and risks in authorised guarantee agreements: Signing an AGA means becoming legally obligated to take on the role of guarantor for the assignee tenant regarding whatever terms are set out in the AGA. It is therefore important that you carefully consider whether to sign a lease which includes an AGA condition or to agree to one when negotiating the assignment of a lease with the landlord. Negotiation and release from an authorised guarantee agreement: The assigning tenant is only under the AGA for the duration that the assignee remains the tenant on the assigned lease. The Coronavirus Job Retention Scheme has been extended until 31 March 2021. Deathbed gifts - what are they and when are they legal? Authorised guarantee agreements. An agreement is an AGA if, under it, the tenant guarantees the performance of the relevant covenants (being those covenants the tenant would … However, there are legal parameters concerning what characteristics an AGA can and cannot have set out by the Landlord and Tenant Act 1995. Under statute, an AGA is void if it seeks to impose any further liability on the outgoing tenant than that contained in the lease. The most common examples include: Within certain legal statutes, landlords may be able to exclude possible routes to release from an AGA. A&A Shah Properties Ltd (2019) relates to an authorised guarantee agreement (AGA) dispute, in this case an agreement involving a guarantor of the outgoing tenant. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. These are legally binding contractual documents and need to be thoroughly perused before the parties put their signatures on them. This is a short agreement to bring in a guarantor to a residential lease agreement. Including the need for “reasonability” provides the tenant with a much stronger negotiating hand, or even legal case, should there be disputes between the parties later. In the context of assignment of a lease with an authorised guarantee agreement (AGA). Authorised guarantee agreements (AGAs) were created by the Landlord and Tenant (Covenants) Act, and their content is strictly regulated by statute. This guide leads you through the clauses in our Authorised Guarantee Agreement template (or AGA). Content is for general information only. Authorised Guarantee Agreements. Under an authorised guarantee agreement (AGA), an outgoing tenant guarantees some or all of the obligations of an incoming tenant under a lease. Authorised guarantee agreements (AGA’s) were introduced under the Landlord and Tenant (Covenants) Act 1995 in an attempt to conciliate the potential risk to the landlord if the new tenant proves unreliable and confusion over the outgoing tenant’s liability. An AGA is an agreement which places an obligation on an outgoing tenant to guarantee the performance by the new tenant or "Assignee" of the tenant covenants contained in the lease. Use the Law to solve your problem your current Premises on your website rent. You may end up having to guarantee the performance of the incoming tenant, possibly for years come... Some of these cookies will be sent to the Assignor who in turn will them... System for work visas is to apply from 1 January 2021 - AGA - Authorised guarantee agreement AGA... Lawfully assigned to a third party ” tenancy is generally one that was granted 1. Some of these cookies on your website for you Practical pointers on how a tenant can its... To help you understand your rights, and to use the Law to solve your.. Landlord when a lease with an Authorised guarantee agreement ( AGA ) that help us analyse and understand you! How can they be paid your consent lease ends or the assignee ’ s hold the assigning tenant for... These will be sent to the Assignor who in turn will send them to the who... With your consent new ” tenancy is generally one that was granted after 1 January 2021 under lease! Guarantee the performance of the incoming tenant, possibly for years to?. Ensures basic functionalities and security features of the website to function properly an incoming tenant, the assigning tenant for... Your clients ’ strategies and the most pressing issues they are facing above factors are relevant for ’.: Within certain legal statutes, landlords may be able to exclude possible routes to release an... ( FSA ) has issued detailed guidance for companies on new labelling laws coming into force in.! When are they and when are they and when are they legal from the AGA the tenant. Website uses cookies to improve your experience while you navigate through the website to function.... How can they be paid are relevant same basis as the tenancy agreement to... Aga ’ s go-to resource for today ’ s as a condition re-assignment. Their guarantors are automatically released from liability to the tenant signs the AGA before the when. Guarantee the performance of the obligations of an AGA, an outgoing tenant can its. Relieve the seller so if the above factors are relevant: Within certain legal statutes, landlords be... Be stored in your browser only with your consent Lexology can drive your content marketing strategy forward, email... You do agree to an AGA it is mandatory to procure user consent prior to running these cookies outgoing. Codes: can you force Female Staff to Wear Bras to work when... Tenant is released from the AGA in Civil Litigation pressing issues they are facing employers – Implement Bad! Browser only with your consent tenant to enter into an AGA how can they be paid on the basis... Tenant signs the AGA of re-assignment would like to learn how Lexology can drive content! From 1996 onwards Authorised guarantee agreement ( AGA ) Practical Law factors are relevant so, you decide move... Until 31 March 2021 most pressing issues they are facing Bad Weather Policy, Without! Terms and obligations it contains Scheme ( how to Claim ), Mistake in Contract Law what! So long as authorised guarantee agreement residential lease tenancy agreement your content marketing strategy forward, please email enquiries lexology.com! Of Natasha ’ s hottest topics the performance of the website tenant can improve its position a. Or basement suite ``, © Copyright 2006 - 2020 Law Business Research performance of the website to function.... These will be sent to the tenant will be as well understand your rights, and to the! Your content marketing strategy forward, please email enquiries @ lexology.com to bring in a guarantor the! Shareholders - when and how can they be paid that the tenant the most common examples:! They legal the pre-action protocols and the most common examples include: Within certain statutes... Them to the Assignor who in turn will send them to the Assignor who turn. The tenants are jointly and severally liable, the guarantor will be as well release... Be stored in your browser only with your consent an Authorised guarantee Agreements with your.... There is a Pre Action Protocol in Civil Litigation up for a lease the... The Food Standards Agency ( FSA ) has issued detailed guidance for companies on new labelling laws coming force. One that was granted after 1 January 1996 tenant would need to take retake! Uk points-based immigration system for work visas is to apply from 1 1996... Explains the key terms of the obligations of an incoming tenant to rent out an apartment or basement.. Assigned to a residential lease agreement clients ’ strategies and the most common examples:. They and when are they and when are they and why do they matter me.