What Is a Notarized Lease Agreement?
A notarized lease agreement is a rental contract that has been certified by a public notary. The notary public verifies the identity of the signers and witnesses the signing of the document. The notary also affixes a raised seal to the lease and may include an identification number. A certificate may also be attached stating that the lease agreement was acknowledged and is a true signature.
In some states a notary is required for certain types of lease agreements, such as those involving real property. Because each state has different regulations, it’s always best to check with your state’s housing authority, district court, or small claims division for the particulars.
In addition to required instances, many landlords require a notarized lease agreement in order to avoid and help end disputes. Misunderstandings can happen between a landlord and a tenant regarding the terms of a rental contract. If either party says it was not aware of certain terms or conditions, it may have a much stronger argument if the lease was notarized. If it wasn’t and it’s not a requirement, you can pretty much bet the judge is going to rule against you.
For example let’s say you are the landlord and you want to begin eviction proceedings because rent was not paid on time. But your tenant tells the judge his rent was only due on the 15th and the contract clearly states the 15th of every month. How do you defend yourself? Do you have a leg to stand on if the contract was not notarized or didn’t specifically state what the 15th of the month meant?
Hearings are not always ruled in favor of the landlord. Unfortunately, many people do not understand the laws that govern their state and will frequently try to avoid legal obligations. A true story I heard involved a landlord who rented under a "vacation home" lease. The tenant moved in but then refused to pay rent. He said he couldn’t afford to pay that much for a vacation home and that the rental amount was too high. But the agreement did not allow for any negotiation and specified that he was to pay a set amount , every month, on the first. In that case, no exceptions. Because the agreement was not notarized and didn’t clearly spell out what a "vacation home" was, the landlord lost the case.
Another reason a notarized lease is used is to make sure that nothing was changed after the contract was signed. Suppose your tenant signs the lease and makes an error with a date. The manager or landlord fixes it. Later, your tenant claims nothing was written correctly or the terms were changed. If the lease was notarized, the new date or corrected date will not match the original nor will it have a revoked signature. Sometimes tenants will write checks but stop payment fearing the checks may be deposited before they get off hold or something. Other times tenants claim their checks were stolen if they are filed in court or demand it be returned. In cases where the contract is notarized, such as with the five day grace period, there is much less of an argument. That is because the contract will not reflect the same date.
The same goes if a tenant claims he never received deposits back when he moved from the apartment. If the agreement was notarized, it’s likely it contains this information. In many cases, a repaired apartment with updated paint or flooring are not the expense of the landlord. That’s because it’s standard practice for a landlord to immediately repair a property and provide the tenant with the appropriate deduction in rent. Sometimes, however, the rent is not deducted from the next payment and evidence of the repair must be presented. If repairs were made by the landlord and not properly documented or recorded, most judges consider the deposit a legal rental deduction.
Why Should You Notarize a Lease Agreement?
A tenant may opt to have a lease notarized. The notarization of a lease means that the document can be proven to be authentic. Not only does it prevent fraud, but it also makes the document a lot stronger in the event of any needed enforcement.
If a tenant and landlord both trust one another, a notarized lease may not be necessary. However, if there is any doubt of the relationship, then this may be an important step to take. By providing proof that a signature is authentic, the chances of a person counterfeiting a signature are reduced significantly.
The main benefit to a notarized lease agreement is that it can easily be proven in court that a valid contract exists. If one party fails to honor the terms of the document, it’s about a hundred times easier to prove that it was indeed signed if a notary was there. When there is a dispute regarding any part of the document, the court will agree with the notary’s statement. This provides the party a lot more security and ability to collect on damages if they didn’t receive what was promised.
While notarization has many advantages, it’s still not required by law in most cases. It’s the norm, but it shouldn’t be viewed as completely necessary. It’s a good idea to protect yourself, but both parties need to agree to have it notarized before proceeding with the signing.
What Are the Components of a Notarized Lease Sample?
Components of Notarized Lease Agreement Sample
A notarized lease should include the same basic elements as a standard lease, including:
This agreement is for [TYPE OF PROPERTY] located in [ADDRESS]. This is between [OWNER] and [TENANT].
Terms of the Lease
General Rental Terms
Breach of the Lease
Signatures and Notarization
In order to enforce the lease as a legal document, both parties must sign it. At this point, "parties" are defined as the owner of the property and the tenant renting it. Both the landlord and tenant should be present to sign. The notary public will first ask for a photo ID. Then, both parties must either sign the lease or use the notary public’s signature stamp, followed by an oral confirmation that the parties are signing under their own will. The notary public will then sign, by hand, and apply his or her seal.
Where Can You Get a Lease Agreement Notarized?
In general, in order to get a lease agreement notarized, the following steps should be taken: (1) Locate a Notary Near You; (2) The Notary Should Complete the Notary Acknowledgment Section of the Lease Agreement; (3) All Parties Must Sign the Lease Agreement; and (4) Notarize the Lease Agreement.
How to Locate a Notary:
For example, you can find a notary public at almost any insurance company or financial institution if you ask the customer service person for help. Additionally, each state has a searchable database of Notaries-usually on the Secretary of State Website. Finally, if none of these options appeal to you, a Notary can also be found at some office supply stores.
When you arrive at your Notary public appointment, bring your identification and the lease contract. After you sign the contract, the notary should complete the notary acknowledgment section and you will then have your contract notarized.
In general, this is the order of how to get a lease agreement notarized. However, be sure to consult with an experienced attorney if you have questions as to the proper execution of residential or commercial leases in your state.
Sample Notarized Lease Agreement Format
A notarized lease agreement is similar to any other lease agreement but the notarization certain acts as a layer of protection and verification that the signature is that of the tenant agreeing to the lease terms. It also states that the tenant agrees to move into the unit or space, as well as to all the terms and conditions of their tenancy. The notarized lease agreement helps to deter prospective and current tenants from claiming that their signatures are not authentic. Because the notary public will have to witness the signing of the lease agreement in front of them, it prevents misrepresentation of the tenants’ identities as they will have to present a form of original ID for the notary public to verify and then notarize once verified.
Notarized lease agreements usually have a notarized acknowledgement which provides a general overview of the basic and fundamental term of the tenancy. The sample format below gives you an example of how such a lease agreement would work for a tenancy. The first section is the introductory statement which usually states the reason for the tenants’ tenancy in that unit or space. The next section is a section on rent; how much rent, when it’s due and if a deposit is required. The next section usually covers the term of the tenancy, such as periodic tenancy, lease term, etc. Then, it goes to the clause for construction of the lease. This clause would state any requirements or obligations of the landlord and tenant, such as scenic construction, material used, etc . Next, the clause is for leasehold improvements; this usually talks about the character and quality of the space in terms of construction or decor, like carpets and colors. The last section of the sample format would be miscellaneous languages like limitations on assignments, third party landlords, landlord’s lien, entry rights, remedies and certain waivers.
(Format) Sample Notarized Lease Agreement:
NOTARIZED COMMERCIAL LEASE AGREEMENT
This lease made and entered into this 01st day of August, 2017 by and between Landlord and Tenant.
For psychological purposes, this notarized agreement is entered and confirmed by Landlord and Tenant for the unit and premises located at the below address.
The address is: 1234 East Oak Street Clayton, NC 27520
The Tenant agrees that it will pay rent for use of the unit or premises beginning 01rd day of August, 2017 to the Landlord in the amount of $1,050 per month and due on the 1st day of each month. The Tenant further agrees that one month’s rent shall constitute a security deposit. If the Tenant fails to pay the rent, the Tenant agrees that the Landlord shall have a lien on all fixtures, goods and other personal property of the Tenant located in the unit and may distrain for the default in rent.
The Lease is for a period of one year. The Lease will automatically renew for two successive and consecutive terms of one (1) year each unless either Tenant or Landlord provides a notice of termination to the other not later than sixty (60) days prior to the expiration of the Lease Year. The Lease Year shall be the twelve month period with the Lease Year and First Lease Year commencing on the Commencement Date.
Common Mistakes to Avoid
There are several common mistakes that can lead to significant problems down the road when an individual either drafts a lease agreement or has one notarized. The following are some of the most common of these mistakes, and how you can avoid them.
Do You Need A Notarized Lease Agreement? Many people do not understand the full purpose of a notary. A notary is not an attorney. He or she cannot provide you with legal advice as far as what the contents of your agreement should be. The purpose of the notary is to verify that you signed the lease, and that it was an act voluntarily completed on your part. This is what gives the notarized lease its legal power. If there is no notary, any party to the lease may come forward later to say they did not in fact sign. It might even be that the signature is forged by somebody who is not authorized to use that signature.
In most states, you are not required to have your lease agreement notarized. In Pennsylvania, for example, if you rent your property to someone for a period of less than three years, you do not need to have it notarized. Real estate lawyers in Philadelphia will often argue that it should still be notarized, since it is an important document in case of an audit, but such precautions are not required by law.
Avoid Improper Use of Notary It is crucial that you do not sign leases in front of the notary that were drafted after you appeared before him. This could be considered fraud, and the notary could be in danger of losing his license.
If you’ve written up a lease agreement with blank sections to be filled out afterward, the notary should not witness it. Again, this is a case of potential fraud, and could cost him his license.
Frequently Asked Questions
What is a notarized lease agreement?
A notarized lease agreement is a rental agreement that has been certified by a notary public, verifying the identities of the parties involved and the witnessing of their signatures. A notary public can be an official in the government or a lawyer who is licensed to verify documents and witness signatures.
Is a notarized lease agreement legally binding?
In general, yes. Both a rental agreement and a notarized lease agreement are legally binding. However, insulating your agreement from a legal challenge is also possible by having it notarized. The benefit of a notarized lease, as compared to a typical lease agreement, comes from the fact that both you and your tenant are required to present personal identification (most commonly, a driver’s license) to a notary public. Since you have verified and seen the document execution process carried out by at least one other person, it can be harder to legally contest the validity of the document.
What should I do if I’m not allowed to get a lease agreement notarized?
If you or your tenant is not able to get the rental agreement notarized, it’s still a good idea to get the rental agreement signed in the presence of another person who can serve as a witness to the process . Your witness does not have to be a notary, and while a notary is the best option, you can even use another adult unrelated to the lease agreement. As with a notary, the witness must see both you and your tenant sign the rental agreement.
If I am in front of a lawyer, will the rental agreement automatically be notarized?
Not necessarily. All lawyers are not licensed to witness documents and notarize. We recommend that you check with a lawyer before presenting yourself at their office with the rental agreement you would like notarized, to ensure that a notary public is on-site and available.
How much does a notarized rental agreement cost?
The cost for having a rental agreement notarized varies widely by state and by service. On average, however, you should expect to pay between $4 and $20. If you choose to have the rental agreement notarized through an existing third party, such as at a law office or courthouse, most places will allow you to slide a tip the notary’s way for his or her services. You will almost never be required to pay for notarization as mandated by law.