What Should Be Included in Lease Agreement?

In accordance to the Law of Turkmenistan on Lease, a lease agreement is concluded between the landlord and the tenant on the basis of voluntariness and equality of the parties and is the basis for the emergence, change and termination of lease relations.

The lease agreement is concluded in writing, with the exception of the rental agreement concluded in accordance with the relevant legislation of Turkmenistan.

Under the lease agreement, the landlord is obliged to provide the tenant with certain property for an agreed fee for temporary use for independent economic activity or other purposes in accordance with the legislation of Turkmenistan.

The tenant is obliged to use the leased property in accordance with the terms of the lease agreement, the purpose of the property and pay the landlord the rent specified in the lease agreement.

What should be included in the lease agreement?

The lease agreement must contain the following:

1. name, legal address and details of the parties to the agreement;
2. name, parameters, composition, quantity, cost, location of the leased property and the purpose of using the leased property;
3. the procedure and conditions for the transfer of property leased, the terms of the lease;
4. the amount of the rent, the procedure and terms of mutual settlements;
5. the procedure and conditions for extending and (or) changing the term, changing and terminating the lease agreement;
6. rights, obligations and responsibilities of the parties, including:

a. the obligation of the lessor to transfer to the lessee property suitable for use for the intended purpose established by the agreement, and to warn the lessee about the rights of third parties to the property transferred for rent;

b. the obligation of the lessee to return the leased property to the lessor after the termination of the contract in the condition in which he received it, taking into account normal wear and tear caused by lawful use;

c. distribution of responsibilities for the operation and repair of the leased property between the lessor and the lessee;

d. in cases established by the legislation of Turkmenistan, insure the leased property;

e. the procedure for the lessor to exercise control over the condition of the leased property;

       7. The lease agreement may provide for other terms of lease.

Source: Law of Turkmenistan on Lease