Rental agreement
A general term for the contract between landlord and tenant. Can be a fixed-term lease or a month-to-month arrangement.
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Where this comes up: getting ready
Part 1 of 4
Why a seller cares
Whatever it is called, the rental agreement is what the buyer of a rental steps into. A written one with clear dates is easy to sell with; a verbal one is a month-to-month tenancy the buyer has to take on faith.
Part 2 of 4
A simple example
Your tenant has been on a handshake for three years at $1,200. Legally that is a month-to-month tenancy, and the buyer wants it in writing before closing.
| The agreement | What it means for the sale |
|---|---|
| A written fixed-term lease | Clear terms the buyer can read and rely on |
| A written month-to-month agreement | Clear terms, and a tenancy that can be ended with notice |
| A verbal arrangement | Month-to-month by default, and a buyer who wants an estoppel from the tenant |
The rental agreement is the tenant's side of the sale. Written beats remembered.
Part 3 of 4
What people get wrong
That no lease means no tenant rights. A verbal tenancy has every right the state gives a month-to-month tenant.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
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