Do All Lease Agreements Need to Notarized?
A lease agreement is a binding contractual agreement between a property owner and a person who wants to use the property for a period of time. Due to the risks involved when entering into a lease, it is common to get a witness to its signing. A notary acts as a witness to many formal contract signings, including lease agreements. As the property owner, you may wonder if getting a lease notarized is a requirement or an option.
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Common Types of Lease Agreements
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One of the most common types of lease is a rental agreement through which an individual or business rents real estate for a period of time. When leasing a car, the auto dealership requires the driver to sign a formal lease agreement. A business owner must also sign a lease agreement for commercial equipment. A formal written agreement is standard when an item of high value is being leased.
What Is Notarization?
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Notarization is the process of validating a contract or other type of document. Notary publics, commissioned by each state, act as witnesses to the signing of these documents by stamping them with an official seal. The two parties involved in the agreement must present government-issued identification to prove their identification (including name, address, photo and signature as presented on the ID) to have the document notarized.
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Notarizing Leases
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States don't normally require a notary's signature on a contract to make it legal. Exceptions include certain state-issued documents like business registration forms or deeds. In the case of a lease agreement it is usually up to the property owner (or renter) to decide if he wants the document notarized. It is not usually a requirement by state law for a property owner and renter to get a lease notarized.
Potential Consequences
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Even if a notary isn't required by law for this type of agreement, it is still valuable and provides added security for both parties. If a property owner does not get a lease agreement notarized he could have trouble proving that the other party was authorized to sign the lease. For instance, if the other party denies agreeing to the contract and his signature doesn't match the one on his license, that could complicate matters if a dispute over terms arises.
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