Lease agreement for long term - 20 years

Arun,

Nice to see people are now taking expert opinion before taking a major decision. Here are few suggestions point wise to your query.

1.There is no problem in leasing out your property for 20 years & there won't be any legal issue after expiry of lease term.

2. You must have a registered lease deed clearly mentioning the intention of both you and the lessee, details of schedule of land with boundries, tenure, rent, escalations.

3. You must not ask for a sample format for your 20yr lease deed & should take help of a local lawyer who have experties in making such deed. You must clearly mention the "exit clause", grounds for termination, dispute resolution mechanism arising out of said lease, scope of extention of tenure, notice period for termination, resource against failure of obligation by other parties, Jurisdiction of dispute beside your agreed commercial clauses. ( I can prepare the same for you, but it will take time)

4. If you don't want to go beyond 20 yr term, pls mention the same in the agreement in the beginning to avoid confusion. (else easementary right may come in to play) 

You can get the draft agreement vetted from a reputed civil lawyer before signing 

best of luck.

Hello Sir,

Thanks for your time and Inputs. That definitely clarifies most of my concerns.

My main concern was that, if he claims, he invested so much amount in the property and couldn't get the expected returns back in this 20 years and so will need to extend the lease for some more years, will it be considered, incase we get to the courts for this dispute?

Like you mentioned, I will definitely put that, we are not interested to continue beyond 20 years in the beginning itself.

I have definitely made a note of all your points and like you suggested, will take help from a local lawyer on this.

If possible, please send me a draft when you get sometime!

Mr. Arun,

I am advcoate from Bangalore that if you need my Legal service. you can contact me to this number 9980635871.