Clarification on Registered Lease/Rental Deed
BAALASUBRAMANNYAMM
(Querist) 07 June 2011
This query is : Resolved
Respected Experts, Plz. Suggest me.
“The Owner of a commercial space wants to sell the property to some buyers. The said premises have already been given for lease to Third Party wherein a Registered Lease Deed was existing. The proposed purchaser is also agreed to continue the same tenant.
We want to have a clarification with regard to registered Lease Deed.
(1) Whether the existing lease deed can be cancelled and a fresh lease deed to be executed or not, in case if we want to continue him as tenant and also for demanding/ receiving the regular rents.
(2) We came to know that there is no necessity to cancel the deed, only for the purpose of receiving/demanding rents from the tenant, a letter of authorization (Triparty Agreement on Rs.100/- stamp paper) from the existing Lessor and Lessee is enough for the above said purpose.
(3) So if we accept for the above Sl.NO.2 option, can we vacate the tenant on the basis letter of authorization, in case, if the tenant is a defaulter of rents?
R.R. KRISHNAA
(Expert) 07 June 2011
A fresh lease deed has to be executed between the new purchaser and the tenant.
I assume the lease to be more than a year. In such circumstances letter of authorization is not the right document. Any lease for more than a year requires registration and must be made by lease deed only.
Raj Kumar Makkad
(Expert) 07 June 2011
No fresh deed is required as tenant is always a tenant and owner can sale his property without consent of tenant. The tenant is bound by all terms and conditions of deed already executed with previous owner and even no tripartite agreement is required. The tenant should be informed only about change of horse and nothing more involvement is required.
R.Ramachandran
(Expert) 08 June 2011
I completely agree with the views of Mr. Makkad. But the sale / purchase deed with the prospective buyer must be properly drafted.
Shashikant V. Patil
(Expert) 08 June 2011
I too agreed with the views of Mr. Makkad and Mr. R Ramchandran. There should not be any problem as proposed purchaser is wish to continue with the same tenants with everybody's mutual consent and understandings.
BAALASUBRAMANNYAMM
(Querist) 08 June 2011
Respected Experts, Thanks to all for giving your valuable suggession.
