lease deed
CA SKSONI
(Querist) 12 October 2009
This query is : Resolved
What precautions should be taken while drafting a lease deed of 30 years with renewal conditions by a Doctor to a Pvt. Ltd. Co. newly farmed for construction and running a his own hospital with other two partners/ stakeholders.
A V Vishal
(Expert) 12 October 2009
1st precaution: Get the deed done and vetted by a legal professional
2nd precaution: Give reasonable time to the professional to draft the doc according to your terms and
3rd but not least get the deed registered to secure yourself from future litigation (most of the people ignore this in order to save a few rupees but end up with long litigation).
A.P.Manoranjan
(Expert) 12 October 2009
Precautionsrequired in drafting a long term lease deed.
1.Names and addresses of the parties to the lease deed including their assignees and heirs.
2.Purpose of the Lease deed and the Period reom---to---with renewal clause of similar period.
3.Consideration lease amount payable Monthly and annual increments.Payment of other taxes like property tax,service tax,electricity,water etc.bills.
4.Condition precident.
5.Notice period for Vacation.
6.Maintenance for good living condition.No additions ,Alteration & modifications.
7.disputes determination and their resolution.
8.Exit clause.
9.On dissolution of compay liability on the part of directors for payment of dues.
10.NO Linking of the property while taking longterm loans from Banks by the company.
Sachin Bhatia
(Expert) 12 October 2009
LEASE DEED
THIS INDENTURE OF LEASE made at New Delhi this ________day of ___________.
BETWEEN
Sh./Smt. __________________Hus/Wo. _____________________R/o ______________
_____________________(hereinafter referred to as the “Lessorâ€, which expression unless repugnant to the context hereof shall mean and include her heirs administrators, executors and assigns) of the ONE PART.
AND
Sh. ____________________S/o Shri_______________________, R/o ______________
_________________Doctors Lane, __________________. (hereinafter referred to as the
“Lessee†which expression unless repugnant to the context thereof shall mean and include his heirs, administrators, executors and assigns) of the OTHER PART.
WHEREAS the lessor is the absolute owner of the residential property bearing Flat No. _______________________________________________(hereinafter “Residential Propertyâ€).
AND WHEREAS the leassee has agreed to take on lease the said Residential Property comprising of two bedrooms, drawing-cum-dining, kitchen, one bathroom, one toilet, one balcony and one scooter garage admeasuring a total built up area of ____________. (approximately) or its thereabouts (hereinafter all of the aforementioned referred to as “Demised Premisesâ€) for the residential purpose of Sh. ______________and his family, such demise being purely temporary and limited to the period of this lease. Accordingly, the Lessor and Lessee (hereinafter collectively referred to as the “Partiesâ€) are executing this Lease Deed to reduce the terms and conditions agreed in respect of the Demised Promises in writing.
NOW THIS DEED WITNESSETH and it is hereby agreed by and between the Parties hereto as follows:
1. This the lease in respect of the demised premises shall commence w.e.f. __________________and shall be inforce initially for a period of one year which may be further extended for a period of one more year with an increase of Rs. ____________ in monthly rent.
2. That the Lessee shall pay to the Lessor, lease rent of Rs. ____________ per month in advance but before the _________of the month through a cheque drawn in favour of Mrs. _______________.
3. That the Leassee shall pay to the Lessor a sum of Rs. ____________________ as security deposit free of interest which will be refunded at the time of the premises having been handed back properly to the Lessor with all the fittings and fixture etc. in good condition, all dues having been cleared.
4. The Lessee shall pay the Electricity & Water according to the concerned authorities/Bills.
5. it is further agreed to by and between the parties that after the expiry of the Term i.e. ______years, the Lease in respect of the demised premises shall ipso-facto be terminated.
6. That the Leassee shall not make any structural addition/ alternations, but may install air conditioners or room coolers etc. without damages to the property.
7. That the Leassee shall not sublet the premises the whole or any part thereof during the period of tenancy nor will allow at the time of vacating the premises and will hand over peacefully vacant possession of the premises to the Lessor or his authorized agent.
8. That the Lessee will use the premises purely for the residential purposes and shall not use the premises. Nor part of it for any other purpose.
9. That at the time of occupation, the Lessee shall see that all fittings and fixtures are in perfect order and shall be responsible to restore this in the same condition in which they have been taken over except natural wear and tear.
10. That the Leasee shall allow the Lessor or his authorized agent to enter the said premises at reasonable hours or when necessary for inspection/ repair etc.
11. That day to day repairs arising out ot the normal wear and tear or resulting from any modifications by the Leassee shall be done by the Lessee at his own cost but any major structural repairs will have to be done by the lessor at his own cost.
12. That the Lessee or the Lessor has the right to terminate the Lease Deed with written notice of one month of either party.
13. That the Lessor shall pay all the taxes i.e. house tax, property tax.
14. That in case of default of non-payment of the Lease amount for the maximum period of _________months, the Lessee has got to vacate the premises immediately. No claim whatsoever will be entertained.
15. That the Lessee has agreed to abide by the terms and conditions of the Lease Deed. In case of failure to comply with any condition the Lessor shall have option/right to get the premises vacated without any notice.
16. That any dispute related for the aforesaid house shall be subject to the jurisdiction of the Court at __________>
IN WITNESS WHEROF THE parties have set and subscribed their hand in the presence of the witnesses mentioned herein below.
WITNESSES:
1.
LESSOR
LESSEE
2.
Sachin Bhatia
(Expert) 12 October 2009
I would suggest you not to enter to such a long term rental agreement. Any tenant would love such a long term agreement as they are aware about the rentals that they have to pay you for the house. But, for the owner of a house, I don't think it is wise to enter such a tenancy agreement. The best for you to go with will be LL agreement, which expires every 11 months. You have to take the trouble of renewing your agreement, yet it is the safest mode of leasing / renting apartments. You can't guess how a tenant will react after getting older at your place. Moreover, after a period of 15 years, law will be in their favour. If it was a business establishement, you would not have much problem.
Raj Kumar Makkad
(Expert) 12 October 2009
apart from the detailed opinion of the experts given more than required or requested, I opine that these are terms and conditions which should be drafted wisely and clearly. There should not be contradictory terms in the deed. Each latter term should be independent and separate from all other terms mentioned earlier so that its interpretation may not be confused. better take help of competent lawyer in such subject.
