Laxman 14 September 2017

Questions before signing a lease with a mnc

Afternoon folks,

I need your expert guidance as we are planning to enter into an agreement for commercial space with an MNC.

1. The lease agreement we were provided with MNC (or Lessee) doesn't include any clase for 'road widening'. Can we include or elaborate that in case of road widening, Lessors (we) are not responsible for reduction of rental area?

2. Lessee is asking for a copy of our current Sale Deed? Since there is so much mis-handling of property documents (especially sale deed), we are hesitant to provide them a copy. What is an alternate option in such scenario?

3. With GST now in the market, as we are 4 individual owners of this property, is it wise to setup a firm and get the rental amount from them or accept the rental amount in individual names? As we recently acquired the property recently, currently (for this financial year) we won't be falling into the minimum 20Lac per annum clause announced by the Govt. Please suggest. Any details are appreciated.

Thanks so much.

Regards

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2 Replies

Siddharth Srivastava (Advocate) 14 September 2017

1. Yes, you can include such clause.

2. You have no option but to supply the copy of sale deed.

3. All owners may enter into agreement. No necessity to form any company.

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Laxman 14 September 2017

Thanks sir.

Re; 3rd point, the other 2 co-owners are not in the country. So, how and what kind of agreement we can enter into?

Actually, we are 4 owners (or 2 couples) who registered the property. So, should we ask the Lessee to pay the rental amount to 4 individual bank accounts?