Free Lease Agreement Templates

When it comes to commercial real estate, there is much more that can be done in terms of contracts than is mentioned here. However, the free lease agreement templates offered here are a standard format that can be modified and used for all of your needs. For those who are unfamiliar with commercial property and how it is handled, this article is a good place to start. Specifically, the discussion of how a lease agreement works, agreement possessions, and other things that you should be aware of.

How does a Lease Agreement work?

This agreement for personal property is entered into by a bank or individual lender and borrower when the borrower agrees to provide possession of his or her property to the lender in order to secure repayment of the loan or debt.

When signing an agreement for personal property, a borrower actually transforms selling and possession rights of his or her personal property to the lender so the lender can make use of the borrower’s personal property in case of non-payment of the loan or debt as per terms and conditions of the agreement. A well-drafted lease agreement specifies in detail that what is owed by the borrower, what kind of personal property shall be used as a pledge, and other basic terms and conditions for satisfying the debt or obligation, etc.

You should make sure that the agreement templates that you are using allow you to change this easily. As well as ensuring that you are able to change the text and add your own information as well as corrections, you should ensure that the document is easy to read as well as easy to understand. For these purposes, we are offering you of our free lease agreement templates below.

Get this Lease Agreement Template by clicking on this download button.

Source: eForms

Get this Lease Agreement Template by clicking on this download button.

Process of Lease Agreements

An agreement is a form of security to make sure that a borrower will repay the loan amount according to the motioned terms. A lease agreement is a legal document that conveys the possessory title of the property or asset owned by a borrower to the lender in order to secure repayment for some debt or any kind of responsibility. In simple words, we can say that in a lease agreement one party temporarily gives possession of the property to another party until the repayment of the loan or debt is made in full.

In case of nonpayment of the loan or debt, the lender can retain or sell the property or asset to recover the loan amount. Mostly lease agreements are used for securing loans. Providing something like personal property or assets as security is a must requirement of many financial institutes and banks when you want to get a big loan from them for the fulfillment of personal or professional needs. You as a borrower can either bring a third party into the agreement as guarantor for the return of the loan or you can give certain rights of your personal property to the creditor so he or she can use or sell your property in event of the defaulter.

Physical and Constructive Possessions

A lease agreement for personal property gives the lender rights to sell or use the personal property if the borrower failed to repay the debt or loan as per the terms of the agreement. According to the terms, there can be two types of property possession named as physical possession and constructive possession.

In the first type of possession, the lender can have the personal property of the borrower in his or her hold like the lender can keep the borrower’s car.

On another hand, in constructive possession, a lender has some control over the property like a house or building, etc. Constructive possession in the lease agreement typically occurs when actual possession is impossible. You should get the services of a legal representative or lawyer when want to enter into the agreement.

How does a Lease Agreement work?