An equipment lease deed is a legally binding contractual agreement between the owner of the equipment, who is referred to as the lessor, and the person who will be using the equipment for a defined time period referred to as the lessee.
The usage will be in exchange for periodic payments which will be specified on the lease deed. Equipment may entail factory machines, vehicles, or other types of equipment. The ownership of the equipment, however, remains with the lessor and the equipment lease deed can be canceled on various conditions such as usage of equipment to indulge in illegal activity.
Essential Components of Equipment Lease Deed
Here are the contents of the equipment lease deed:
Period: The duration of the deed should be specifically mentioned. Further, other conditions should be specifically mentioned such as terms under which the period of the deed can be extended.
Rental: in consideration of the equipment being leased out by the lessor, an amount should be paid by the lessee on a regular basis. The lease deed specifies the day of the month on which the payment should be made, in case the payment has to be made monthly, which is usually the case. In addition, the lease deed also specifies the late fee, interest, or any other form of penalty which must be paid in case the payment is not made on a regular basis.
Warranties and Repairs: Warranties and repairs are an important part of a deed. It should be explicitly stated whether the lessee or the lessor will be responsible for the fitness and repair of the equipment. Further, it must also be clearly mentioned that the equipment must be returned in the original condition when the period of deed is over. In case there are defects in the equipment, the lessee will be liable to get the repairs done. Further, it should be specified whether the benefits of the manufacturer’s warranty can be availed by the lessee.
Ownership of equipment: Ownership of equipment has to be specifically mentioned. The deed should also be supported with proof of ownership so that there is no conflict. The title or rights of usage of equipment shall not be passed from the lessor to the lessee by way of present and this has to be included in the deed. It should also be mentioned that the lessee may not sub-lease the equipment further and should only use it as discussed prior.
Terms of insurance: The term of insurance should also be mentioned on the equipment lease deed. In some cases, the lessor has the equipment insured and the benefits can be availed by the lessee. In other cases, the lessee must get insurance done if they want to avail benefits.
Lastly, it is important to mention the penalty in case there is a default in the payments. The lessor can choose to levy a financial penalty on the lessee in case of default in payments, and also end the contract if the payments are not done over a certain period of time. Such clauses should be mentioned on the equipment lease deed.
If you want to create an equipment lease deed online kindly visit: contractbazar.com
Residential and Commercial properties are leased out by real estate companies to variety of tenants by executing lease deed.
Subsequent to execution of a lease deed, at times, parties execute amendment to lease for further alteration of their terms.
It becomes difficult to manage all the leases by a real estate company as a landlord or by a tenant especially if a tenant is a big multinational company occupying premises at multiple locations.
It is thus very important for them to manage their leases properly by summarizing their lease documents.
SKJ Juris provides lease abstraction services to such real estate companies as well as commercial tenants in the form of full-lease, financial lease or custom lease basis which is further elaborated in its website www.skjjuris.com.
Heavy machinery that is indispensable for the daily operations of every industry or company is included under the industrial equipment.
They carry higher price tags as they are special in their nature.
It is through industrial equipment finance is how such expensive equipment is acquired provided with a few of the genuine financing companies.
When grantors or grantees to a deed need to obtain a court order to reform or change a deed.
When an affidavit or corrective filing won't do.Learn more:https://provenresource.com/deederrors/
