The need for an MOL is particularly important in situations where tenant ownership cannot be seen by a third party. If a lease is signed. B, but since the tenant is not open to transactions with the public for several months or even years, most third parties would not be aware of the lease without MOL. In such a situation, the registration of an MOL is necessary to protect the rights of tenants vis-à-vis third parties in the period following the signing of the tenancy and before the tenant is actually visible in the premises. Similarly, an MOL is important when a tenant moves his premises, continues to pay rent and the rental contract remains mandatory for both the landlord and the tenant. Under these conditions, the tenant cannot be seen physically in the premises; However, the lease agreement and all rights, restrictions and concessions remain fully in force. Indeed, in such a situation, it could be argued that a decision not to regard an MOL as a decision to accept the risks arising from the non-delivery of the document. While most jurisdictions do not require the registration of an MOL, there are those that require the registration of a lease or MOL in all circumstances or in certain circumstances. In Louisiana, for example, a lease over third-party rights is considered void if the lease (in its entirety or in its short form, referred to in Louisiana as a rent disclosure) is not accounted for. The.
Rev. Stat. Ann. 44:104 and La. Code Art 3338. In Connecticut and Maine, an MOL (or the lease itself) must be registered if the lease lasts longer than one year (in Connecticut) [Connecticut General Statutes 47-19 and 47-20] or two years (in Maine) [33 M.R.S.A 201]; Otherwise, the lease agreement is binding only on the parties to the lease and not on innocent third parties who would otherwise have benefited from the registration of such a document. Another example: in Alabama, a lease of less than twenty (20) years [including the initial term and possible renewal options] must not be counted to be enforceable to third parties; However, if the term of the lease is more than twenty (20) years, the portion of the lease that is more than twenty (20) years is non-aigale, unless the lease or MOL is recorded in one (1) year following the execution of the lease. Ala. Code 35-4-6 (1975). Due to the diversity of registration requirements in each state, each country`s statutes and jurisprudence must be carefully considered when a party decides to register a lease or MOL. The terms of the leases specify at least the names and addresses of the parties, the date of the lease, the description of the rental land, the start date and the end date or the terms of setting the start and end date, all that is to be expected. In addition, the statutes provide that the tenancy agreement includes the question of whether the tenant has the right to buy or refuse in the denied premises and a statement on the length of time that right can be exercised.
See 21 per cent. And since the memorandum is not limited to this name, date and local information, a tenant could include its exclusive use in the submitted memorandum. While some might argue that an MOL is not necessary, because third parties should know about a tenant`s ownership and potential rights that might be related to that tenant under his tenancy agreement, simply because they can see the tenant in possession of the property, this argument is weak. The knowledge that a tenant is in possession of a building only gives a potential buyer, lender or tenant the obligation to investigate. And the simple request of a record owner is not enough for third parties to be concerned about a tenant`s rights under a rental agreement. Only by registering an MOL can a third party be charged with constructive knowledge of the most critical provisions of the lease. The registration of an MOL allows a third party to be responsible for constructive communication on the terms of the lease.