Leasehold documentation has new horizons

A leasehold documentation is applicable under special cases where the buyer postpones the final dealings with the seller for some short span of time. Real estate documentations are of a variety of type and of them, the leasehold ownership is of a special variety.

The rent credit facility that follows the above mentioned documentation is one of the many striking features. With this attribute, the buyer is subject to getting credits from the seller’s end, if the former can pay all dues of money before the given date of clearance every month. So, this helps in reducing the payable amount each time the “rent credit” is applied.

This rent credit amount is absolutely negotiable and depends on the negotiating power of both the parties. Normally, these are decided during the general dealings and contract between the buyer and the seller. This rent credit, however, is applicable on during the first period of contract.

If the contract is extended by any chance, then the rent credit procedure becomes null and void. So, if we calculate on a simple basis, the seller is supposed to reduce an amount of $1200 from the total sale price when the monthly rent credit is $100.

Now, if we study the whole procedure, we will see that the seller usually does not suffer huge rent credits. This is because the seller receives non-refundable money as part of the leasehold ownership process and the small credit amount that the seller refunds, is quite negligible.

Now, a very common question is what happens exactly when a buyer is not purchasing the leasehold ownership? The very first step that the seller could take is filing a lawsuit. The lawsuit shall state that the intended person is deviating from the contract that has been signed previously. This is a heavy breach of discipline and could result in legal issues.