Renting residential premises is regulated by the Civil Code of the Russian Federation. Property owners who do not plan to live in an apartment for a long period prefer to rent it out and receive passive income. Such transactions occur quite often.
The law requires that a tenancy agreement be concluded in writing. If its term is more than 11 months, it is subject to registration with Rosreestr, since long-term lease is considered as an encumbrance on real estate. This is a paid procedure that also requires time, so citizens prefer to draw up an agreement for a period that does not require entering information into the register. If, after the expiration of the period specified in the document recording the transaction, the legal relationship between the landlord and the tenant has not terminated, the contract must be extended.
Deadlines
The possibility of extension must be fixed in the current contract, otherwise legal difficulties may arise.
In the case where the possibility of extension was not taken into account in advance, a separate agreement is concluded describing this important condition. It is important that the date of signing this new agreement must be included in the validity period of the main agreement. Otherwise, it may also be declared invalid if the matter comes to court proceedings.
Only after the possibility of extension has been legally secured can an additional agreement to extend the contract be concluded.
paper elements
The additional agreement on contract extension consists of:
- Hats.
- Main part. It is divided into a statement and a list of points.
- Signatures of the parties.
In practice, the upper part of the document is completely copied from the main contract. Only the date of signing changes, but the names of the parties remain unchanged. In addition, you must indicate the city of signing, number and full name of the document.
There are only a few required pieces of paper:
- A reference to the main contract, most of the terms of which remain unchanged. The number and date of the conclusion must be indicated.
- Indication of the parties to the contract.
- Indication of the new date until which the agreement between the parties will have legal force.
- Information that all previous terms of the contract, except for the terms and points specified in the additional agreement, remain in force.
- Number of copies of the document.
Regarding the last point, the minimum number of copies to be signed is equal to the number of parties who sign it.
Without details, signatures of both parties and the date of signing, the additional agreement will not have legal force.
Components of a letter
The letter is ideally printed on the organization's letterhead. This way, your contact details and name will be guaranteed to be at the top of the page. If you don’t have special forms at hand, then standard A4 format, office paper, will do. It should contain the following information:
- Date the letter was written. If this is accepted in the organization, then the number.
- The addressee to whom the letter is intended. In the upper right part it is customary to write your full name and also indicate your position. Naturally, if the letter is sent to an organization.
- Who is sending the message? If it is sent on behalf of the organization, then this is its leader. It is necessary to indicate not only the full name, but also the position and full name of its leader.
- A reference to the agreement that was concluded between its parties.
- If possible, reference to the clauses of the contract, according to which the extension of the agreement occurs in this way.
- From what date to what date will the terms of the existing agreement be extended?
The letter is certified by the “autograph” of the manager or a person who has the appropriate rights to sign business documentation.
Loan agreement
Some borrowers who have entered into an agreement face financial difficulties and are unable to fulfill their obligations on time. In this case, everything will depend on the lender.
If the lender is ready to sign an additional agreement to extend the contract that satisfies the borrower, then the situation can be resolved beneficially for both parties to the agreement. If the lender does not intend to extend the loan term and revise the monthly payment amount, then the borrower faces legal proceedings.
If the decision is positive, there are several options:
- Revision of the monthly payment schedule. The amount will be reduced, making it easier for the debtor to repay it.
- Postponement of the final repayment date. For a certain period of time, the debt is “frozen” and cannot be repaid. For such a service, the lion's share of financial organizations requires an increase in total debt.
- Increasing the amount of debt.
- An increase in interest paid on a loan due to an increase in the total period of use of loan funds.
- Adjustment of the ratio of loan repayment and interest. The latter may be postponed until the final months of debt repayment. Thus, the borrower will soon be able to repay only the body of the loan.
In most cases, the document adjusts the terms of repayment of the loan body. Interest is accrued and paid regardless of the degree of deplorability of the borrower’s financial situation. Debt restructuring only moves the deadlines forward.
Moreover, for prolongation, as a rule, an additional fee is charged, ranging from 1 to 25% of the total debt.
The attached additional agreement form is aimed specifically at extending the loan agreement. One of its clauses describes the amount of debt to be paid.
Lease contract
When drawing up an additional agreement on extension to the lease agreement, it is worth keeping in mind that all transactions that concern real estate for a period of more than a year must undergo the state registration procedure. That is, if the contract was concluded for a year, and then it is extended by an additional agreement for at least a day, then this transaction must necessarily go through Rosreestr. If the contract is terminated and a new one is concluded for a year, then such a procedure is not necessary.
Renew or sign a new one?
People are often interested in what is better: renewing the current document or signing a new one? Opinions on this matter vary.
From the point of view of a lawyer or government official, it is best to draw up a new one . This is the easiest way to track the start and end dates of the relationship between the parties.
After all, the parties can extend the validity of the document many times; the number of additional agreements is not fixed anywhere. to carry out control, including tax control .
If we talk about saving time for the tenant and the landlord, then it is easier to renew the rental agreement. For example, the owner of the apartment will not need to return the deposit to the tenant, who will still pay it again later using a new document.
Also, at the end of the lease, you need to draw up an act of acceptance and transfer of property from the tenant to its owner. And after that, when the new agreement comes into force, another act will be drawn up to transfer the apartment and the property in it to the tenant.
In any case, the maximum duration of renting out living space cannot last more than 5 years without concluding a new title document.
Supply contract
Extension of a supply agreement most often has a more complex structure than all others. Additional items include the price category of the goods supplied. After all, over time, exchange rates, demand and other fundamentally important aspects of pricing change. For this reason, business partners resort to extending deadlines and changing prices. But this doesn't always happen.
In addition to the above, renewable agreements also include a storage agreement. This is due to the fact that the storage of material assets can also be extended for a specific period and documented accordingly.
The same type of renewable agreements can include a work contract. It is drawn up and signed in most cases if the construction organization does not have time to complete construction by a certain date.
Employment contract
Additional agreements may also occur in labor relations. When the employer wishes to increase the validity period of a fixed-term employment agreement, and the employee agrees with it. Moreover, this consent, according to existing legislation, must be expressed in writing.
A fixed-term employment contract is usually drawn up for a period not exceeding five years. There are different wording options for this period: until the previous employee returns from parental leave, until the end of the season, etc.
If there is a need to increase the validity period of a specific document, then you can draw up and attach an additional agreement to the employment contract.
Alternative methods
In addition to this method of increasing the validity period of the terms of the agreement, there are others. For example:
- When concluding the initial contract, one of its clauses will state that the term can be extended by exchanging electronic or paper letters. If both parties express in letters their desire to extend the contract for a specific period, then it will automatically be considered extended.
- Automatic extension according to the terms of the agreement. One of the clauses states that if there are no objections from one of the parties, the agreement is automatically extended. Such long-term agreements are common among rental agreements.
- Certain types of contracts imply automatic extension due to existing laws. These include agreements on travel insurance, water supply, and trust management. Even if these papers do not contain a clause on automatic prolongation, they are implied there.
Extension of a long-term lease agreement
If the contract was concluded for a year or more, the employer has the preemptive right to prolong it. So, the owner of the apartment must offer to extend the lease first of all to him. Only after refusal will the landlord be able to enter into an agreement with another tenant. If the apartment owner does not plan to rent out the property in the next year, he has the right not to renew the deal upon expiration. But, if during this period he enters into a new contract with another tenant, the previous tenant has the right to appeal his actions in court and receive compensation for the damage caused.
In case of long-term employment, if neither party notified the other of the desire to extend the contract and the participants did not stop fulfilling their obligations, the deal is automatically extended under the same conditions and for the same period.
After the extension of the long-term rental agreement, it must be registered again with Rosreestr, since the encumbrance of the property has continued.
When will it be invalid
The legal force of the paper will depend on many fundamentally important points. When applying to a court, an additional agreement to extend the contract may be declared invalid in the following situations:
- In case of cancellation, legal inconsistency of the original written agreement.
- If a representative of one of the parties did not have the right to sign at the time of signing the document.
- If the main agreement has been registered with the registration chamber, but the additional agreement has not.
- If the original agreement is notarized, but the annex to it is not.
These are not all the reasons for recognizing the additional agreement as lacking legal force. In any case, when compiling it, you should adhere to generally accepted rules and recommendations.
Other changes to terms and conditions
How to formalize changes to other conditions agreed upon when renting out living space? They change in the same way - an additional agreement according to the algorithm described earlier in this article.
Only the changed items will be different.
Participants in rental relations should remember that any change in conditions is possible only by mutual agreement . No unilateral change in the terms of the lease is possible.
Sample additional agreement to the rental agreement.
The most common reasons for changing the original document are rent and living conditions .
The apartment owner is interested in maximizing income from his small business. Therefore, he will try to increase the cost of hiring , arguing that this is due to inflation or changes in the real estate market.
In some cases, owners resort to outright blackmail : they threaten to change the locks on the front doors if new conditions are not accepted.
Tenants usually ask for a reduction in rent , because during a crisis the economic situation of citizens worsens, which reduces the demand for rental housing. Or they ask for permission to move friends or relatives into the apartment.
In any case, the parties should discuss wishes and seek compromise solutions without leading the situation to conflict.
Find out from our articles what the payment for renting a residential premises includes, as well as what the tenant must pay for and how to confirm the costs of renting an apartment on a business trip.
