What Exactly is a Lease Agreement?

As per Investopedia, a lease agreement is a contract between a lessor (owner of the leased property) and lessee (tenant who will be using the property in question). The lessee will gain the right to use the property and/or equity owned by the lessor for a specified amount of time, in return for a payment (rent). There are many different types of leases. For residential real estate, a lease will typically last for a minimum of one year between the tenant(s) and landlord or real estate management company. The lease will discuss key information such as: the amount of rent to be paid, when the rent will be due as well as what the various responsibilities of each party will be.
When it comes to commercial property leases, leases can be short, like getting a car, or long, like buying a house. Commercial real estate leases vary widely, and may be negotiated, but generally a lease gives a business or person the ability to use and occupy the property as well as the right to do certain things to it (making changes to the interior or exterior of a building or the land – making alterations) for a set period of time . In exchange, the business pays money either once at the start of the lease or periodically throughout the term.
There are many different kinds of lease agreements and simply agreeing to live somewhere and paying rent does not always mean that you have a lease. A lease can be a written or verbal agreement with a third party. While leases often include the terms and conditions of the use of the property, it is important to understand that other rights and responsibilities also come with them, that might not be specifically listed on the lease. Leases may also have very specific terms about what happens if either party does not adhere to the agreement.
A lease is important to laying out the relationship between the landlord and the tenant. Since there are many different types of agreements, it is important to review them carefully with the help of an attorney if needed.

Notarization: What Does it Entail?

Notarization itself is fairly straightforward. It involves a notary public who acts as a neutral third-party witness to the signing of a legal document. Notaries are usually located in banks, post offices, and other government buildings. The notary verifies the signers’ identity by checking the signers’ driver’s licenses (or other forms of ID) and witnesses their signatures on the document.
But what is the actual purpose of notarization? And why is it necessary for certain documents?
Notarization serves a few very important functions. First, it validates that the parties who signed the document did so willingly and are, in fact, the parties they say they are, and not impersonating someone else. This is important because it protects the parties from identity fraud. Next, notarization helps to keep a document valid if questions should arise about its validity at a later time. For instance, if a party later claims that they were forced to sign the document against their will, or that they cannot read the document due to illegible handwriting or the like.
Some documents simply require notarization simply as a formality. A real estate deed is a great example of this. While technically no one needs to witness a real estate deed because it’s not binding until it’s recorded in a state or municipal government office (such as the county court where the property is located), the signer may find it hard to convince that office that the signer is who he or she claims to be without notarization.

Are Lease Agreements Required to Be Notarized?

Do Lease Agreements Need to be Notarized?
From a legal perspective, whether a lease agreement needs to be notarized can differ greatly by jurisdiction. Lease agreements themselves are contracts, the terms of which are subject to both the general contract law and specific statutes in the areas where the agreement is in force. For example, California landlords are not required to notarize rental contracts. And in Florida, unless landlords impose an obligation on their tenants to have leases notarized, a lease does not need to be. Some Canadian provinces require lease agreements to be signed in front of a witness, but there is no requirement that the lease itself be notarized.
Other regions have stricter lease contract regulations that do require a notarized agreement. In Honduras, for example, in order to create an official lease, the agreement must be authenticated by a notary. Internationally, Brazil requires residential agreements exceeding 30 months to be notarized if the lessor intends to collect past due rents through judicial actions. In Colombia, the notary public has the power to sign off on rental contracts, a necessity for any lease in which a property is transferred by an individual or institution.
From a business perspective, landlords may prefer notarization of lease agreements. For example, requiring notarization in some jurisdictions may avoid the time and monetary costs of fraud or any future legal battles. In Hong Kong, for example, if a lease of three years or longer is not created by deed, it will be void. Such a deed needs to have the signatures of all relevant parties, but it does not need to be notarized.
The general rule of thumb is that notarization of lease agreements tends to be more strictly upheld in some international jurisdictions compared to others, including in the US. Whether or not a lease agreement is notarized depends largely on where the lease is executed.

Advantages of Notarizing a Lease Agreement

A significant benefit of notarizing a lease agreement is that it may help to prevent disputes about whether there was actually a contract between the parties. A notary public acts as an impartial witness personally observing the signing of the lease agreement and then having the agreement notarized. The notary public affixes a seal or stamp with a Texas seal in the open space adjacent to the notarized signatures and a notary certificate in ink and a black background. The certificate also may contain the commission and expiration date for the notary public. The seal or stamp provides proof of a legally and properly notarized document. In the event of a dispute, the notary public has record of the signing of the document and retains a copy of the lease agreement signed by all parties, which may be used for future reference in the event of a dispute. A notary public should take care to retain the original of the document, but it may also provide a copy, certified or notarized as well. Another benefit of a properly notarized lease agreement is that it may prevent unscrupulous individuals from signing the lease agreement on behalf of the parties, without their consent. In other words, an individual cannot forge someone else’s signature and apply a seal of a notary public stamped or embossed with a seal, unless the forger is the notary public. If a notary public is found to have forged signatures or stamped a seal or made an imprint, he or she could face criminal and civil penalties.

Disadvantages of Notarization

While there are several reasons why notarization may be a good idea when dealing with lease agreements, there are also a few disadvantages. These include: Cost. Notaries are not free and sometimes the landlord is required to pay for notarization. Small Cosmopolitan Enterprises v Collins (19 Misc 3d 670) ($2,044). Convenience. Many people know notaries in their personal lives , but it can still be inconvenient to schedule a meeting between two busy people and a third unimpeachable party. When can you skip notarization? Sometimes not having a third party witness is just as good as having one. For example, if one tenant maxes out their credit card or runs away with the rent money, the co-tenant may not mind being personally liable for the rent as long as they don’t have to deal with a shady property manager or various creditors.

Under What Circumstances is Notarization of a Lease Agreement Highly Advised?

The requirement for a notarized lease agreement is generally unnecessary. But there are a few important exceptions that are worth noting:
High-Value Rentals: If you’re renting a high-value property (such as a luxury condo, beach house, or estate) you may want to consider getting your lease signings notarized. In the event of a dispute over the lease you want to have as much protection as possible. An added level of security comes from having the original agreement signed in front of a notary public. Make sure, however, that you are obtaining signatures on the original. Once signed the notary public will complete an Acknowledgment of Signature and attach it to the agreement.
Renting to Out-of-State Residents: If you’re renting to someone who lives out-of-state you may also want to make sure that a notary public is present when the document is signed. While your local notary will come at a price, keep in mind that this type of service adds only around $10 to $20 to the cost of a lease agreement. This may be a small price to pay for the extra protection of having a notarized signature on the document.
Renting to Out-of-State Residents who Will Sign Remotely: Yale Law Journal has argued that a notarized signature is not necessary. This is understandable—but another issue that has not been specifically addressed is what to do when a renter resides in another state, and you as the landlord will be signing locally while they will be signing somewhere else. We suggest that you call a company that does remote notarizations. Alternatively, you can also ask the renter to schedule a visit with their notary public and have them send over the completed document.
Notarization Can Be Done After the Lease Signing:
If you don’t have access to a notary before a lease is signed, that’s okay. You can still have the document notarized even after it has been signed. Just make sure that the person who signs the agreement does so publicly. Once it has been signed, you can find a licensed notary public and have him or her complete an Acknowledgment of the Signature which will serve as a substitute for notarization of the document.

The Process of Getting a Lease Agreement Notarized

Just like finding a notary for a blank contract, you have a few options. Additionally, it may be possible for you to find a notary even if the landlord’s name is not on the notarization line. Finally, you can still get your lease notarized or acknowledged by someone who is not an attorney or notary public.
Finding a Notary
Landlords often include the contact information of their notary contacts in their leases. If they do not, you can find a notary in your area with an online search or in the Yellow Pages, or by contacting a nearby law office or bank.
Gathering the Necessary Documents
Once you have found a notary, confirm that you’ll need to sign the lease, and bring the following:
•Blank California residential lease or rental agreement
•Legible photocopy of current photo ID for each adult tenant
•Payment to cover notary fees
Making the Appointment
To make sure that you see the notary at a convenient time, consider making an appointment. Check the availability by calling the lender or notary. An appointment is particularly important if you need a notary to visit your home or a secluded location, as is the case with prisoners or tenants in an emergency.
Arriving at the Appointment
On the appointed day, bring the lease contract and your current photo ID to your meeting, along with payment for the notary’s fees. Make sure that your ID is unwrinkled and not obstructed by glasses, sunglasses, hats, visors or scarves. Even if the notary knows you, they are required to see proper identification when notarizing a lease.
The Notarization Process
The notary will check your ID while you sign the lease before notarizing it. They will date the document and add a small rectangular stamp with raised edges that says who is identified, in addition to your signature on the lease. The notary also keeps a notarization log that lists the date, signer, type of document and fee for the service.
Now you’re all set. Good luck with your rental!

Conclusion – Making an Educated Decision

In summary, there are pros and cons to having lease agreements notarized. As is so often the case, this decision is not black and white – there is room for various interpretations. The judgements about the advantages and disadvantages of notarizing a lease agreement will be strongly influenced by the law of your locality and the unique circumstances of your situation. Most importantly , our earlier advice holds true: Always consult with your local real estate attorney before signing a lease agreement and especially before a tenant occupies. With full understanding of the limitations and risks involved, along with sound legal advice, you stand the best chance of making an informed decision.