Humber Real Estate - Course 3, Module 9, Completing Agreements to Lease for Residential Tenancies 100% Pass

Humber Real Estate - Course 3, Module 9, Completing Agreements to Lease for Residential Tenancies 100% Pass When reviewing a credit report, landlords typically look at what 3 main elements? - Credit score - Account history - Current status of accounts To be useful, a credit report should be current. A report from as little as ______________ does not accurately represent the tenant's current credit situation. It could have changed significantly in that time. 3 months ago The credit score is a single number with a descriptor. The numbers typically range from 300 to 850. The __________ the number, the better the person's credit rating. Better When checking references, the main goal is to determine the potential tenant's _____________ and the ___________ of that income. A secondary purpose is to determine how the tenant communicates and behaves in a business environment. Income, stability What are some ways landlords can request proof of income / employment? - Paycheque stubs - Notice of Assessment - The company HR department - Online employee list - Company phone directory An agreement to lease generally contains 4 main categories of clauses: - Clauses that detail key aspects of the parties to the agreement - Clauses that need some input or action by the parties to complete them - Standardized clauses that require no input - Additional clauses to the agreement, either individually or in a schedule to the agreement An 'Execution of Lease' clause specifies what requirement and clearly makes it a landlord responsibility? - That lease agreements under the Residential Tenancies Act must be drawn on the standard form of lease. - Also covered in this clause is the requirement of the landlord to provide the tenant with information on the tenant's rights and responsibilities An 'Insurance' clause requires the tenant to carry adequate fire and property damage and public liability insurance for the entire tenancy period. It allows the landlord to ______________________________ at any time. Demand proof of that insurance A 'Residency Clause' requires the landlord to inform the tenant if the landlord is a non-resident of Canada or becomes a non-resident at any time during the tenancy. If the landlord becomes a non-resident, the landlord and tenant must comply with ____________________ of the Income Tax Act. Withholding tax provisions What does the 'Conflict or Discrepancy' clause state? That in the event of any conflict or discrepancy, any clause added to the agreement to lease takes precedent over a standard clause in the agreement. Example: If a clause stated that the landlord can go inside the unit between 10 p.m. and 5 a.m. to clean the unit, then it supersedes the "reasonable time" of the standard clause in the agreement as it complies with the Residential Tenancies Act. In an 'Acknowledgement' clause, all named landlords and tenants do the following: - Acknowledge that they have received a signed copy of the agreement to lease - Authorize the brokerage to forward a copy of the signed agreement to their lawyers True or false? An 'Access' clause states the notice requirements a landlord must adhere to when requiring entry to the rental property. False. It permits the landlord to enter the premises for various reasons but does not state notice requirements. In a '______________________' clause, the landlord warrants that their own spouse's consent is not required for the landlord to execute the agreement to lease. If consent is required, the spouse provides consent in the agreement. Family Law Act A '______________________' clause states that the agreement to lease is binding on the named parties. Signatures ARE required. Binding Agreement As with other real estate agreements, all named landlords and tenants must initial and sign an agreement to lease as follows: - Initial at the bottom of every page - Initial any change made by either party on a page - Sign the final page of the agreement *The last party to sign the agreement signs the final page twice: - Once to accept the agreement as binding and allow the salesperson to deduct commission from the deposit payment - Once to confirm acceptance of the offer Electronic signatures do not require witnessing. All _______________ signatures must be witnessed. Witnesses do not need to date their signatures. Hand-written When signing an agreement, should the parties use their full legal names or regular signatures? Regular signatures (how they'd sign a cheque) Both parties' salespersons must sign the ____________________________. This is only signed if there is a listing and a co-operating brokerage. Commission trust agreement When adding a schedule to an agreement to lease, the schedule must fulfill all the following requirements: - State that it is part of the agreement - Name the parties to the agreement - State the date of the agreement - State the term - State who is responsible for adhering to that term - State who pays any related costs What are some common clauses added to schedules of Agreements to Lease? - Tenant credit check condition - Rules regarding use of any shared facilities with other tenants - Rules regarding pets, such as pets must be on a leash when in the common areas of the property - Rent-free periods or discounts - Key deposits, remote entry devices or cards, additional key - Other services or utilities in addition to the rent, such as seasonal rent increase for an air conditioner or block heater plug-in, or fee for additional appliances, such as laundry machines or dishwasher - Warranty or agreement regarding the condition or inclusion of appliances