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Sanjay (Nil)     12 March 2010

What happens to rental agreement after death of Father

Hi,

A rental agreement is made with a company by my father for some years and has been registered, but later he passed away, now the question is should we still honor the agreement as children (legal heirs) and continue the contract till its end or should we jot down a new contract with the tenant. Can we also increase the rent as the persent rent is penuts. We would like to reduce the contract length or get the party vaccated. What are the possibilities in the court of law?

 

thanks & regards,

Sanjay Sharma



Learning

 9 Replies

Gundlapallis (Advocate)     12 March 2010

Sanjay while mentioning the parties in the deed see the language used after descripttion of your dad's name age and other details... the words "his successors, heirs, assignees etc etc - if those words are there you are bound by the contract and you have to wait till its end.  

Sanjay (Nil)     12 March 2010

Thanks for the answer, but would also like to know if the rent can be increased? as of now the rent is too low. Also is there no way to get him vacated as he has taken advantage.

k.chandrasekharan (advocate)     13 March 2010

Legal heirs derive title to property, to the extent, the deceased propositus had. If the title was partial,tainted, defecttive or encumbered, then the derivation too will have these attachments.

In your case, since title is claimed through the deceased father and not independently, the said title is encumbered to the extent of the lease period as well as rental agreed upon. Unless there is a specific provision for enhancement of rent periodically, no enhancement can be claimed from the tenant, irrespective of market conditions. You may see the plight of landlords throughout the country who have let out premises and quarters to nationalised banks, insurance companies,post-office, telephones etc. Nationalised banks are the worst offenders in this respect by their cunningness while entering inti lease. The premises are never got back by the landlords and the rent paid is not 'peanuts' as you choose to call but rotten peanuts.

First of all take steps to get the property mutated with the revenue/municipal authorities, in the name of legal heirs and then ensure payment of rent to the legal heirs, individually or collectively, as decided amongst the legal heirs. Well before the expiry of lease, issue notice of vacation, carefully observing minimum notice period prescribed, if any. Don't offer renewal. Make the tenant seek renewal and negotiate orally. Of a deal is struck, then get written proposal for extension of lease on terms agreed mutually.

If no deal is struk, stick to your demand of vacation. Then only better offer will emerge. If there is an arbitration clause, promptly submit the dispute for arbitration.If there is no such clause, you may have to file a suit in jurisdictional court, which entails payment of court fee, and seek guidance of your lawyer.

sonia (projects)     23 April 2010

Hi,

I just read your response and am experiencing same problem. The market rate is very high but we r not getting any thing from the bank rent. They r neither executing lease deed nor are they increasing the rent. we have been fighting them for 8 years now.

 

Please suggest how to proceed

 

Regards

Geetika

Sushil Kumar Bhatia (Advocate)     23 April 2010

in some state rent control act there is provision for enhancement of rent as per market value in U.P.Rent control act u/s 21(8) rent can be enhanced of the building where state,central govt.or public sector corporation  etc is tenant consult with rent control expert lawyer in your city

Srinidhi (Owner)     12 May 2010

Sir,

My tenant has not paid rent for over 15 months and it has exceeded the security deposit also. HE refuses to pay rent and is doing business int he premises.

Can I approach the court to get him evicted and also to get the pending amount? how long would th eprocess take?

The rent per month is much lesser than the market rate.

bhagwat patil (Property due diligence 9422773303)     12 May 2010

get vacated from court  stating you yourself is in need of place of business. secondly he is a defoulter in paying rent. take help of local lawyer.

Gundlapallis (Advocate)     13 May 2010

A defaulter of rent will loose all his rights concurred to him vide the agreement.  Now you dont accept his rental arrears.  File a petition for eviction, immediately.

Srinidhi (Owner)     13 May 2010

Sir, Thank you for your response.

As I understand, the process from the court would be to first issue a court notice to the defaulter, and then when he will not respond, issue a public notice followed by registered post and then issue a ex-party decision. The defaulter has some other case pending against him and intends to prolong the case and continue enjoying the premises for free until then, after which he plans to declare himself bankrupt and walk off.

Is there any faster way to get this done?

Even after ex-party, if all I would get is possession, can I do it now?

How can I recover the money also? First priority s toget back my property.


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