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Some features and general provisions of the lease agreement.

  Relationships regulated by lease (tenancy) agreements are some of the most common at the moment. This is not surprising, because the lease agreements can cover the broad cooperation issues between the parties. Thus, the lease agreements are subject to a variety of objects due to hiring; it may include enterprises, land, buildings, equipment, vehicles and other things that do not lose their natural properties in the course of their use (non-consumable items). . The contracts of tenancy also include lease agreements, rentals, and other types of contracts relating to the transfer of property for temporary use. Therefore, such agreements are widely used and there are many details and features necessary to take into account for this type of agreements, as will be discussed in this article.     

An important starting point for the establishment of relations based on thelease is a form of contract. For example, between individuals it is enough to conclude the oral form of the agreement, when the contractual terms duration is for less than one year. In case when at least one party is a legal entity, it is required the conclude the written agreement. Depending on the subject of the lease, the specific requirements are put forward for state registration of such agreements. For example, in case at least one party is a legal entity and duration of lease of real estate is for more than one year, it is mandatory for the agreement to be registered with the real estate.

Another thing to consider is the price in the agreement. The lease agreements can provide a variety of payment options for using the object of the lease, such as a fixed fee, a percentage of the revenue, the provision of tenant services and a variety of other complex forms of payment. Here, in defense of the interests of the tenant, it is possible to include such a clause as the lessee's right to demand a corresponding reduction of fees, if due to circumstances for which it does not meet the conditions of use specified in the contract, or the state of the object lease substantially deteriorated. Also in this set of questions with regards to price of the lease, there are issues of taxation that may arise. Thus, it is necessary to foresee the business activity registration where it is applicable and undertake actions for tax reporting and payment of appropriate taxes under these agreements. The lease agreement shall reflect who has the burden of paying taxes. Often there are situations when the subject of lease is transferred gratuitously, that does not relieve the parties from tax liabilities. For example, when renting the building gratuitously, the lessee company has tax obligations to the budget of the RK on profits from income coming from gratuitous use of lease. The price of the agreement, according to the Civil Code of the Republic of Kazakhstan, is also protected for the interests of the landlord, thus, the landlord has the opportunity unless otherwise provided by the contract, in the event of a material breach by the employer (tenant) of installments payment terms for the use of the property, the landlord can request him to make an early payment within the period prescribed by the landlord. In this case, the landlord has no right to demand early payment for more than two consecutive terms.

          Another important aspect to this type of agreements is specification and reflection of the details for required to lease property for completeness and sufficiency. That is, there may be situations where the possibility of operating some of the equipment without proper documentation or components is limited. In such cases, the contract shall specify the options to avoid such situations or secure the legal consequences for the parties.

              When concluding the lease agreements it is necessary to reflect the provisions of the third persons and their rights, if the planned activities imply that. For example, here we can talk about it if the object of lease is in the mortgage or in discontinuous easement or other forms of participation of third parties. Then the tenant shall ensure free access to the object of lease or other right of use by third parties and in general, the issue of limits disposal of facility by tenant. Namely, if the tenant can take the property to sublease, assign its rights and obligations under the contract of tenancy to another person (transfer). After all, the Civil Code of the Republic of Kazakhstan provides opportunities to provide these rights (rent) to a pledge and contribute them as a contribution to the charter capital of business partnerships, joint stock companies or as installment payment into the industrial

The issues and disputes on repair and improvement of facilities under lease are often found in practice. These points shall be detailed in the lease agreement. Thus, if one of the parties will be improve the object under lease, how this will be reflected in the subsequent rent payment or there is need to return on investment, and how it shall be reflected in the cancellation of the agreement. The issues and limits of the burden of the object under lease shall also be recorded in details within the rights and obligations of the parties. From experience, there are situations when it is difficult to determine by "non-specific" agreement, how the parties are obliged to repair the damage caused by, for example, natural phenomena. Or do not clearly identify the limits of the property, not covering by the lease agreement of who is responsible for the maintenance of the surrounding objects, which can be a source of substantial damage to the object of lease. Thus, the maintenance of the leased object needs to be given much attention.  

The important conditions are the conditions for termination of the lease agreements and making amendments to them. The Civil Code of the RK also stipulates the conditions for each of the parties when such agreement may be terminated early due to the initiative of one of the parties. However, it is obvious that the tenant shall think in advance and reflect in the lease agreement the prolongation of the agreement, primary right to conclude the agreement for a new term and generally think about the risks and consequences associated with the possibility of termination of the lease agreement by the landlord at any time, as the owner of the property. Thus, the tenant shall be aware that the Civil Code of the RK set the provision which improves his position. If the landlord refused to conclude agreement for a new term, but within a year from the date of expiry of the agreement entered into an agreement of tenancy with another person, the tenant may, at its discretion, to demand in court the transfer of rights and obligations under the concluded agreement and compensate the losses for refusal to renew the agreement with him, or only compensate the losses. It is also important to be aware that the transfer of ownership, the right of economic management or operational management rights on leased property to another person is not considered to be grounds for modification or termination of the tenancy agreement. And of course, the agreement may reflect other conditions, which improve the situation of a tenant and of a landlord.

        For the landlord, it shall be reflected in the agreementthe issues and policy of return of the leased object. In particular, reflecting the terms of the condition of the leased object under conditions of the lease.


       Thus, here we considered the most generalized moments under lease agreements, some of the features that are parts oflease agreements, rentals, lease management and transport. However, the above points apply to these agreementsas they are subtypes of lease agreements and are governed by the same basic provisions, but with considerationof specific agreements.

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