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CS Ankush Lawate (CS)     13 December 2013

Lease deed or mou

Dear Experts and Members of group,

Our company is a pvt ltd company. Company owns a plot in MIDC. Directors wants to take this plot on lease for their personal use. As lease deed needs to be registered, Directors are of opinion that being the personal matter, we should enter into MOU only rather than sub-lease deed by which we can avoid the registration charges as well as other disclosures to authorities...Kindly give me an opinion in this regard.

Thanks in anticipation.

CS Ankush Lawate



Learning

 6 Replies

BAALASUBRAMANNYAMM (Advocate)     13 December 2013

Here only "Lease Deed " is maintainable, not MOU. Here the registration of a Lease Deed is not compulsory. It can be maintainable without registration. The registration is required only in the case of occupation of a third person. Here, when the directors of the company are using the said premises, the question of registration does not requires.

AAK (Advocate)     13 December 2013

The best option is to make Leave and License agreement to be renewable after every 11 months..

CS Ankush Lawate (CS)     13 December 2013

 

Originally posted by : baala subrahmanyam

Here only "Lease Deed " is maintainable, not MOU. Here the registration of a Lease Deed is not compulsory. It can be maintainable without registration. The registration is required only in the case of occupation of a third person. Here, when the directors of the company are using the said premises, the question of registration does not requires.

Dear Sir....that mean i can enter into lease deed with directors and this deed is not required to be registered????? but i guess lease deed for such a long period (11yrs) cannot be notarised....???

BAALASUBRAMANNYAMM (Advocate)     13 December 2013

In your query you have not mentioned the lease period is 11 years. If it is 11 years, better to go for registration.

AAK (Advocate)     13 December 2013

With due respect to Mr.Bala, I beg to differ with the preposition expressed by Mr.Bala.. For any transfer of property by way of lease needs to be registered if the period exceeds 1 year irrespective of whether it is used by third person or otherwise. 

ramanarayana gupta m r ( reitred bank executive)     13 December 2013

I agree with "AAK" this is legal.


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