IAS 17

IAS 17

IAS 17 Leasing

Lease is a contract whereby one party agrees to give another the enjoyment or use for some time, or perform work or provide a service for a certain price. The temporal duration and the price some are characteristic of this relationship, which is called landlord who agrees to grant the use of the tenant thing and that is acquired. Is a contract perfected by mere consent, creator of mutual responsibilities and chain of title for execution during an extended period of time. The contract may be formed in any way even word. Although usually done in writing. So the object is recorded lease and the conditions, duration, rental or other conditions. The contract expires at the end of the agreed term if an extension occurs, except in rural lands that work differently.

Types

Before renting any property, there must be a lease between the landlord and prospective tenant, the lease is a contract between a lessor (owner of the leased premises) and a tenant. The lessor committed to providing a space for a given period against the guarantee of rent paid each month. Generally, there are three types of leases: Leases residential, commercial leases and Rural Land. Regarding the residential lease, the landlord cannot terminate the tenant without cause, he does can only do so if he wants to live or sell the property in question or if he has reasonable cause and seriously (Barton 2010, 35). The tenant must give notice to the landlord to let it know that from this date it will paid more and he can try to recover, if desired, a tenant quickly.

Regarding the commercial lease, a person (trader, craftsman, industrial) that has a business and leases of premises are protected by law because it has security of tenure. Indeed, if the trader wants to hope for a business interest, he must be able to stay in the premises long enough. That is why the lease is at least nine years renewable. In addition, the tenant may leave him every three years, he may transfer his business with the right to lease, the landlord may recover at this point to certain premises conditions: construction, demolition, housing or real and serious reasons. It can also stay in place when he pays his rent and maintain the premises properly. To recover its premises, the owner must pay compensation to the tenant eviction. Finally, some commercial leases are not subject to strict rules, but the Civil Code. (Locations seasonal, less than two years (unstable), or unbuildable vacant land) (Wang 2011, 131-137). Finally as regards the agricultural lease, as the commercial lease, the tenant may remain in where, when he pays his rent and maintain the premises properly. There are 3 types: lease (lease term limited at least 9 years) but it is usually long term, ie 18-year renewable period of 9 years and transmitted to the spouse and descendants or 25 years (long lease notice) or even a career that is to say until the age of ...