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How is a verbal tenancy agreement created


How is a verbal tenancy agreement created?

For a verbal tenancy to exist it must have three essential elements: an offer, the acceptance of that offer and payment subsequent to that offer (known as the 'legal term consideration’).

If these three conditions are met, then by definition the parties have agreed a verbal tenancy agreement which is a legally binding contract.

Both parties parties must be acting freely and not under duress and agree to be legally tied to the agreement. In addition, both must be over 18 and have the ability to make and understand the agreement (i.e. if either is drunk at the time the agreement was reached or is deemed not to have mental capacity the agreement is not legally valid.)

Even though verbal agreements are legally binding, it is still preferable, and indeed vitally important, that a written tenancy agreement form is used when creating a tenancy. Frankly, a landlord or tenant who agrees to anything without a written contract is extremely foolish and simply storing up problems for the future.

Written contracts exist for the protection of both landlord and tenant. A written AST tenancy agreement form avoids misinterpretation and sets out the key points in the tenancy. By having a well-constructed written tenancy agreement which outlines the tenant and landlords’ responsibilities, any disputes further down the line can be avoided.

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