Do you want to rent a property? Don’t know what you need to do it? In the next article we will show you the requirements to sign the Leasing Agreement in Chile and the payment responsibilities of each party, so that you can do this process without any problems.
In addition, you will also find how the increases in these contracts work and the requirements that you will need if you are a legal person; therefore, this article will help you with your plans to rent a property in Chile.
What are the Requirements to Sign the Lease Agreement in Chile?
If you wonder what do you need to sign a lease, you have reached the ideal article for you. Here we will explain in detail what you need to obtain this document.
Therefore, in the following list you will find the requirements to sign the Lease Agreement in Chile:
- Present the identity card.
- If you are a foreigner, you can present your passport or the identity document with which you entered the country.
- All the documents used in the Leasing process must have their antecedents presented.
- Check and Prove that the owner of the property is the landlord. For this you can use: deeds of sale or the Registration in the Real Estate Registrar.
Finally, when you meet these requirements to sign the Lease, you can continue with the rest of the process and thus lease the apartment or property you are looking for.
On the other hand, apart from the requirements to Sign the Lease Agreement in Chile, you will have to gather a series of documents, depending on the legal type of person you are.
Documents for Legal Persons
At the time of doing this procedure to sign the Lease, you must take into account what type of person is going to be the one who signs the document, if it is natural or legal.
This is because legal persons have to submit other requirements to sign the Lease Agreement, apart from the general requirements.
However, before mentioning what these requirements are for legal persons, we are going to explain what or who are considered legal persons.
«A legal person is considered to be institutions, organizations or companies that comply with the same rights and obligations as an individual in society.»
Now that you know the definition of a legal entity, it is time to move on to the requirements that they will need:
- The certificate of validity.
- A Certificate of appearance of the legal representative of the company.
- The copy of the latest Income Statement.
- A copy of the Identity Card of the legal representative.
- The copy of the payment of the last 3 VAT.
- A copy of the Income Statement for the last two years.
- If the company is new, you must present the documentation of the partners of the company proving their income and their ability to pay.
Who is responsible for Paying the Notary?
After the requirements to sign a Lease, the next most important topic to know is who pays what.
One of the most important doubts on this subject is know what payments correspond to the lessor and the tenant.
It is for that reason, that here we will explain which payment corresponds to each person in this process:
The payment of common expenses correspond to the owner of the property, that is, the landlord is the one who takes care of these expenses.
However, these can also be paid by the tenant or tenant, if a prior agreement is reached.
However, by law, the payment belongs to the landlord.
Again, this payment corresponds to the landlord, since he must offer the tenant a safe and comfortable place to live.
Fire insurance is a mandatory insurance that condominiums must contract by law.
At the same time, this payment also corresponds to the landlord or property owner.
However, since it is a minimum amount that must be paid, an agreement can be reached between the owner and the tenant, so that the latter ends up paying it.
The payment of repairs are up to the tenant, that is, to the tenant of the property.
However, the repairs that are borne by the tenant are those that are made during the tenant’s stay, and that have to do with the care and maintenance of the property.
This payment is the responsibility of the landlord, but like all these payments, an agreement can be reached between tenants and owners, so that both carry the payment with each other.
These types of services are consumed by the tenant of the property, so it is he who must run with the payment.
This contract must be paid between the two parties to the process (Lease and landlord).
With this information, you already know which payment corresponds to each person, so it will be easier to carry out this procedure.
Likewise, all these payments can be agreed between the tenant and the landlordTherefore, transparency and communication between both parties will achieve a better agreement.
Usually, the price of the leases is established by prior agreement between the tenant and the owner of the property. Now, it is recommended that this value be reflected in a contract between both parties, to avoid misunderstandings.
However, it must also be stipulated in these contracts a rent increase every 6 to 12 months, according to the agreement reached by the parties involved.
Now, this readjustment or increase of the rent can be done based on three variables, which we will detail below:
- Readjustment according to IPC: The increase is made according to the Consumer Price Index that has been established during the lease period.
- Improvements to the property: If an improvement is made to the property, previously agreed, the value of the lease may rise.
- Readjustment according to the real estate market: As the rental market behaves, the value of your leased property may increase further.
In conclusion, the rent increases must be agreed between the tenant and the lessor, in a contract agreed between the two.
In this way, the process between the parties is completely transparent and secure for both parties to the contract.
What is it?
In this last section of the article we will mention what a lease is. So, if you have reached this subtitle without knowing the definition of this type of contract, you can rest assured, since we will explain it to you here.
A lease is a document that validates the «loan» of a property from one person to another person.
These types of documents are the most recommended when carrying out this type of agreement, since they comply with a legal aspect, which requires compliance with it.
However, also verbal contracts are allowed, and these can be legally recognized, but they may lack the obligations and rights that signed contracts have.
In addition, the lease contracts must have specified several aspects, so that they can function properly. Now some of those aspects are:
- The rental rate.
- The day the rent is due.
- The date of the contract.
- Responsibility for payments to be canceled.
- Contract period.
- The penalties of the contract.
It is important that at the time of signing In these contracts, check well what is stipulated in the document, since you will be legally obliged to comply with it.
In conclusion, lease contracts are an important document that you must formulate when you go to rent a property in Chile. It is for that reason that knowing the requirements to sign the Lease Agreement.
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