Ground Rent Lease Agreement

For some leases, you can contribute each year to a declining fund. In this way, a fund (known as abacle reserve or funds) can be created to cover the costs of major repairs. B, for example, replacing the boiler or roof at a later stage. The concept of basic rent currently applies to a lease for land on which the tenant builds a building. While the owner remains the owner of the land, the tenant owns all the structures and pays only the rent of the land. Basic leases are common in the Netherlands. However, most Dutch municipalities (including Rotterdam, Den Bosch, Eindhoven, Haarlem and Maastricht) leave the system and offer households the right to buy their property. However, some, including Amsterdam, retain the basic lease, which facilitates complete remediation, prevents land speculation and makes the whole municipality benefit from the country`s added value. This is not always the case. In a house converted into two units, for example, tenants could be responsible for the rehabilitation and maintenance of the structure. Or the tenant of the lower apartment is responsible for the repair and maintenance of the interior and exterior of the building up to the first floor, and the tenant of the upper apartment is responsible for everything above the first floor. Under these conditions, the lease agreement should indicate who is responsible for the maintenance of the shared parts and how the costs should be distributed among the tenants.

An obligation to pay rent may be made if (1) the person entitled to rent loses such a right in an act or other instrument; (2) the country is taken by EMINENT DOMAIN and the person entitled to the rent is compensated for the loss; (3) the rent-fixing agreement is violated and is not applicable thereafter; or (4) the owner of the land is also the person entitled to receive the rent or to redeem the right to rent. When buying a property, make sure you understand the rights you have to the land on which your property is located. The basic rent is not stable for tenants, as they have little control over the use and management of the land. It is then covered by the guaranteed rent provisions under the Housing Act of 1988. As a result, if the tenant falls into basic rent arrears of 3 months, the landlord has the right to ask the court to repossess the property under Ground 8 of the Act. Reason 8 is a compelling reason for possession, which means that the court cannot refuse. The government agreed that it was rare to justify the sale of new leasehold construction, with the main objective being to sell to basic rental investors.

Comments are closed.