Thursday, August 19, 2010

Who is the creditor when signing a rental lease?

No one, credit is not involved..Who is the creditor when signing a rental lease?
The landlord is.





The term ';creditor'; generally isn't used in a property lease agreement. But technically the landlord is extending credit. If you rent a place for, say, $1,000 a month for a 1 year term, the lease probably says something like: ';John Tenant agrees to pay Joe Landlord $12,000 in amounts of $1,000 per month due on the first of the month.'; Well, you've obligated yourself to pay $12,000. And, from the landlord's perspective, he's given you $12,000 in credit (minus any money you pay up front for rent, such as first month's rent and last month's rent).





Hope that helps.Who is the creditor when signing a rental lease?
If you sign a lease where you must pay rent in advance, then you are the creditor, because the ';landlord'; has your money before you actually owe it!

No comments:

Post a Comment