What is this lending ? Is this the same as a loan or maybe more a rent? Not completely. By definition, lending is another solution for people who need premises, real estate or other rooms to run their own business, and unfortunately they lack funds to buy one. Interestingly, the premises, apartment or other room that we purchased in installments and we are still repaying these installments can become the subject of lending.
Not only real estate, but also movable assets can be borrowed. How is this done? As with any other operation regarding operations on our property, first of all it is worth signing a contract.
Lending and the provisions of the Civil Code
The act of lending is regulated by the Civil Code. The lending itself consists no less of the fact that after we have signed the relevant contract, we transfer the given movable or immovable property to another person for use completely free of charge. And the latter distinguishes between lending and rental .
This difference lies in the fact that we derive financial benefit from the lease and we make loans for free. Even if we had a rental agreement and the amount of rent arose, it is a lease agreement, not a lending agreement, by law. The loan only takes place when it is free of charge. The loan agreement can be signed for a definite period of time, but also for an indefinite period.
Lending as a perfect solution for people who are just starting their adult life
Such lending of a dwelling is even a perfect solution for young people who are just entering adult life. Dream and out of reach. Certainly in most cases, even if this happens, it is certainly within the family.
And how many family members who own property would like to lend it to a student for free instead of making money from it. Although there probably are such families.
Although there are also such cases that someone goes abroad and is afraid that an empty apartment is more attracted to disasters in the form of breakdowns or thieves and prefers to lend a flat to someone at that time, someone who will only pay current bills such as rent or utilities and housing it will become empty.
The cost of lending to a person using it
The fact that a person using the lending of premises must pay current bills related to property maintenance results from the provisions of the Civil Code and the loan agreement. It also follows from these provisions that such a person is required to maintain the premises in the state in which they were handed over to him. This is also a perfect arrangement.
All you have to do is settle your rent and utilities bills, take care of your apartment and remove any defects on a regular basis.
Lending only after signing the contract
If the loan is made free of charge, is this contract really necessary? Yes of course. Such an agreement protects the interests of both parties. It is worth to write a contract, if only to be able to terminate it at any time, if we find that the premises are improperly used. The contract should also include the time for which it is concluded.
As in any other legal act, it is very important that this contract is written.