Daughterinlaw's rights to inlaws property
Lakshmi
(Querist) 07 December 2014
This query is : Resolved
I had signed a rental agreement in Dec'12 for the front portion of my motherinlaw's property & renovated the previously residential dilapidated house into a commercial gift store after spending 30 lacs funded by loans. I have been paying rent regularly starting at Rs.6500 monthly with an annual hike of 10% n now they have increased it by 100% to Rs.15000 without warning & threaten to evict us if we don't payup. We are sisters married to brothers of the same family & this shop is our only means of supporting our kids, we cant agree to their demands and fear Eviction & harrassment from our Inlaws/brotherinlaw as our husbands refuse to come to our aid.
1.Pls advise on how to take preventive measures to avoid eviction / threats / verbal abuse?
2. Can we or our kids claim right to inlaws property?
3. Do we file a Civil case or Criminal case for harrassment, verbal abuse & threats
Dr J C Vashista
(Expert) 07 December 2014
@Lakshmi,
Are you getting proper receipt for the rent paid? What is the period of tenancy?
Did you seek consent of your MIL before renovating the property?
Was there any agreement for retaining/ letting out (period of tenancy-if any) the property before commencement of renovation work?
What for your MIL want to revoke tenancy and eviction?
Verbal abuse or threats do not change the status of eviction/termination of tenancy for the demised premises. You will have to take other steps to restrain her such as police complaint, social pressure etc.
Contact, consult and engage a local lawyer and proceed as advised.
Sailesh Kumar Shah
(Expert) 07 December 2014
Please states the folliwing :-
1.For what period agreement executed ?
2.renovation with the consent of owners ?
3. There is any clause in the agreement for 100 per cent emhancement ?
Lakshmi
(Querist) 07 December 2014
Sir,
Earlier it was an asbestos roofed house rented out to previous tenants. And I ventured into this business with my sis as a partner after I quit my job & my husband helped in getting my MIL's consent for renovating the house into 2 commercial outlets of 900 & 300 sq ft each.
The first agreement was signed on Nov'12 for a initial period of 11 months with a 10% hike annually but we did not renew it subsequently and she didn't give any rent receipts till date though we were prompt in giving her rent by 1st wk of every month.
Last year my MIL requested us to handover the smaller shop to my second BIL as he was out of a job & we agreed out of compassion though we didn't get paid for the costs incurred in building it.
We have never been on good terms with my inlaws because of their aggressive behaviour and things have become worse with them creating lots of problems for us & have resorted to verbal abuse & threats as my 2nd BIL wishes to take over our shop since our business is doing good while his adj. small shop isn't doing that well.
Besides my sis wants to separate from her jobless alcoholic husband who is the eldest son, & who has been admitted to rehab thrice while my husband who is the youngest son doesn't have a regular income. Our families depend on this shop's income & with many loans to repay, we are not in a position to shell out more rent.
Pls advise
Lakshmi
(Querist) 07 December 2014
My inlaws have now given us a rental agreement for us to sign but they have applied whitener over all the previously agreed terms incl. 10% annual hike etc.
Anirudh
(Expert) 07 December 2014
Dear Lakshmi,
First you have to indicate what is the duration (period for which the premises was taken on rent) of the rental agreement first entered into by you?
ajay sethi
(Expert) 07 December 2014
if you are able to obtain alternative premises nearby for running your gift shop dont sign rental agreement with your inlaws . if your husband does not support you in your negotiations with your mother in law it makes no sense in continously carrying on business under constant threats of eviction .
ajay sethi
(Expert) 07 December 2014
sign leave and licence agreement only if it is for period of 3 years or so with a renewal clause and with no annual increase in rentals
Rajendra K Goyal
(Expert) 07 December 2014
While agree with the advise of the expert ajay sethi, before signing any agreement get it vetted by your lawyer.
T. Kalaiselvan, Advocate
(Expert) 07 December 2014
I think you might have contacted a lawyer already to tackle the issue (?), even otherwise, as suggested by experts please go through the rental agreement once again carefully, if the terms are not suiting you, it may be requested to be amended in a amiable way, whatsoever, with the strained relationships persisting day in and day out, it would be a better choice to look for an arrangement outside the relative circle to carry out the business activities peacefully without any hurdles instead of flexing muscles during peak business hours.
Lakshmi
(Querist) 07 December 2014
The first rental agreement was only for 11 months subject to renewal every year with 10% hike thereafter. And since we have to repay outstanding loans of nearly 20 lacs, we cannot vacate the premises as of now as we don't have resources to invest elsewhere.
Besides we don't wish to give away our store built with our hard earned money & obviously they will not reimburse the costs incurred for renovation. And we wish to continue our business in the same premises as we have an existing customer base.
Can the grandkids stake a claim to their grandmother's property or can we claim rights as daughter-in-laws married into this family.
We have not sought the advice of any lawyer till now as we are afraid of the outcome.
Anirudh
(Expert) 07 December 2014
OK. The first agreement was for 11 months. What about the second agreement - for what duration?
Whether the second agreement also contained 10% increase in rent clause?
When did you start investing in the premises - during first or during the second agreement?
Lakshmi
(Querist) 07 December 2014
We didn't renew the rental agreement in 2013 as by then we had strained relations & were not on talking terms with our in-laws. But we continued to give rent with 10% hike for the 2nd year though we didn't get any receipts & this year they have increased to 100% without notifying us in advance.
We started Renovation soon after we signed the agreement by demolishing the existing house & converting into a retail outlet.
Now they are insisting on us signing the rental agreement for the period Dec'14 to Nov'15 which has many lines erased with whitener & overwritten by hand & even the 10% increase has been erased.
Dr J C Vashista
(Expert) 07 December 2014
In these circumstances the tenancy is for month to month and you are required to pay/ deposit the rent by 7th day of the month.
It would be better to have a written rent agreement, may it be for 11 months, read the terms and conditions carefully, you are well advised by the experts, nothing more ot add.
Anirudh
(Expert) 07 December 2014
That is the whole issue.
More over I am getting confused here.
When you have taken the place on rent, where does the question of demolition/renovation etc. comes in? How can a tenant demolish the rented portion?
There is a link somewhere which is very seriously missing in this whole episode.
T. Kalaiselvan, Advocate
(Expert) 07 December 2014
Expert Mr. Anirudh is rightly guessing about the missing item. Even in my opinion, though the actual relationship between the tenant and the owner is DIL and MIL, but as a tenant, without the permission or consent of owner, the tenant has no rights to demolish and renovate the tenanted premise. The very action attracts criminal charges too, however with the strained relationship there cannot be a bargain on that issue. If the house owner decides, she can file an eviction suit against you for altering the structure without her permission besides lodging a complaint with the police.
Further more, the grandchildren do not have any rights over the grandparents' properties during their life time and if the grandparents have made arrangement to dispose the property in the manner they desired during their life time, such self acquired properties' settlement cannot be challenged when it is duly acted upon.
Dr J C Vashista
(Expert) 08 December 2014
@Lakshmi,
You did not reply my initial question regarding seeking consent/permission of your MIL before undertaking renovation, the root cause of concern, which a tenant cannot do (legally).
malipeddi jaggarao
(Expert) 09 December 2014
What understand from your query and further posts, you have entered only one agreementfor 11 months with a clauseof 10% hike and it was never renewed. You continue pay the rent at 10% hike on monthly basis. At the time of first agreement, you have demolished old structure and constructed two outlets without written permission of your MIL as you believed that it is for the family welfare. Later she asked you to handover small outlet to your another BIL. Now your MIL is insisting for 11 months agreement with 100% hike over last agreement. Am I right?
If I rightly understood your problem, my suggestions are:
1) You have not obtained written permission for alternation and you invested the money in construction of outlets. This is against law and as our expert Shri Kalaiselvan advised, on this basis she can either file a criminal complaint or eviction suit or both. You are at weak stand.
2) As regards rights, if it is the self acquired property of your inlaws, either you, or your husband or your children do not have any rights over the property. However, if it is not self-acquired property and if you can prove that it is ancestral property, your husband as a right to demand partition of such property.
3) What is hike they propose now in the agreement. If it is 100% you can make a reverse claim (though not legally) for the interest on the investment made for renovation. This can be settled by a dialogue with them or through well-wishers.
4) As the relations are strained to this extent, it is better to relocate your business premises somewhere else, but you say that it is not possible for you. This indirectly indicates that rent now they are demanding is reasonable and you will not be able to get the new premises within that rent.
5) As such, you have only two options - leave the premises, relocate your business somewhere else and demand for the repayment of investment made for renovation (though not legally). Or sign the rental agreement as proposed by your MIL and pay the rent. The investment made either legally protected or not, is a point for discussion and you can make counter claim for the interest or repayment of the same, so that she will also come down for some reapproachment.
Legal remedy is not in your favour. Hence adopt one of the above two options.
Lakshmi
(Querist) 10 December 2014
Dear Mr. Malipeddi Jaggarao,
You have summarized my issue correctly but for a few corrections.
1. Even though I didn't obtain a written consent letter to renovate the place, my husband obtained my MIL's consent approval verbally and only then we went ahead for reconstruction.
2. The rental agreement for the 2nd yr was not signed though she accepted the 10% hike as given in the prev. agreement.
3. The new rental agreement which we are refusing to sign has 100% hike with no mention of annual hike % for subsequent years.
4. They will not agree to repay the investment we have made for the renovation nor the interest amount.
5. They wish to takeover our store without spending a single penny for it.
6. Today we recd. a notice stating that if we don't agree to their terms & conditions we have to vacate the premises by feb'15.
7. We don't have money to invest in a new shop & we have loans to repay so we can't vacate it now.
8. Our families' including her 2 sons & our kids depends on this store's revenue.
9. This place was gifted to my MIL by my FIL's Brother as a return favour for helping him to set up business.
10. It is not ancestral property & neither is it self acquired.
11. This is just not my MIL & FIL but my other BIL who is behind creating problems for us.
malipeddi jaggarao
(Expert) 10 December 2014
1. Oral consent/approval will not come to your rescue. Legally you cannot recover the money.
2. Though the 2nd year rental agreement is not signed, as she accepted the rent, it is not an issue now.
3. You are silent on my question that proposed new rent with 100% is on par with the prevailing rents in the area of not.
4. They will not agree to repay the investment or interest, but you should make your efforts roping in your common well wishers and friends, as you have invested huge amount in renovation and now she is asking you get out of it. You should build up moral pressure on them.
5. They wish to take over, but if you do not vacate, what is the alternative for them except filing eviction suit. The out of such civil suit will take very longer time in the meanwhile you can stay back in the premises, by depositing the monthly rent (@present rate) in the court.
6. If you receive notice, find out alternative premises. If you wish to continue, do that, so that they may file eviction suit and the outcome will take longer time irrespective of the final result.
7. If you do not have money, and have loans, that cannot be a reason to continue in the premises as per law.
8. It is irrelevant that you solely depend upon the income out of this shop. Nothing can be treated permanent. Even the employees, are running risk of retrenchment and they have to find out alternative jobs. Likewise, you can take reasonable time and vacate if you wish to have peaceful life, as the factors are in favour of your MIL in this case.
9.Though it was gifted by third person, in law, it is treated as self-acquired property of your MIL.
10. It is self-acquired property of the donee (receiver of the gift) i.e., your MIL as per law. Hence none of her family members/legal heirs have any rights over it and she has exclusive rights to deal with the property.
11. Your BIL's involvement is no relevance.
Hence, choose one of the three:
1. Find out suitable alternative premises and shift in a reasonable time irrespective of your problems.
2. Agree for the terms and conditions and sign the rental agreement.
3. Do not sign the agreement, do not vacate. Let her go to court of law by filing eviction suit. It will take long time for the outcome and you can continue in the premises by depositing the monthly rent in the court at old rate. Ofcourse you will have bear the nuisance that might be created by your MIL/BIL.
You do not have favurable points and you choose one out of three.
Lakshmi
(Querist) 10 December 2014
Sir, I don't deny that the new rent is at par for commercial outlets in this area but they had not invested anything for reconstruction and in 2012 before we rented it, it was only a small ramshackle house which they had rented out to a Mess @ Rs.5000 only & within 2 yrs span they cannot expect Rs.15000 for the same place without developing it at their cost.
Besides, my sister is contemplating filing for divorce from her jobless alcoholic husband & could she claim this as her alimony as she has to support her college going son & physically challenged 15 yr old daughter for whom plastic surgery costs for her reconstructing her arm will be huge.
T. Kalaiselvan, Advocate
(Expert) 10 December 2014
If this property belonged to your mother in law, your sister cannot claim alimony or any sort of maintenance out of this property or from the revenues derived from this property. If you are damn sure that you have spent the reported amount on developing the structure which was in ramshackle at the time of taking it out on rent, you may fight your case based on the documentary proofs of the same or atleast by roping in the mason or the contractor as witness in you case to support your cause of having developed the structure to its present super structure status and make your pleadings as you are intending to. Take the help of a local expertise rent control practicing lawyer, consult and discuss with him the further steps and proceed.
malipeddi jaggarao
(Expert) 10 December 2014
When I have given you clear alternatives why are harping on your stand? One way you are telling that you cannot recover anything. In other way you do not want to agree for the prevailing rent. Then you bargain and convince her.
When I have given you clear reply that the property is legally treated as self-acquired property of your MIL, and nobody can stake any claim during her life time, why again you are about the alimony? Alimony cannot be claimed from MIL and from her property. One can sympathize with the problems narrated by you, but there is no legal solution for them. Your MIL cannot be held responsible and her property cannot be charged except with her consent to help you people. This is a family matter and strict legal aspects need not be given importance. From my side, I cannot give any more advice on this issue. Better read my replies again and again and come a conclusion what to do. My best wishes to you.
