I have a tenant who has been renting my property for a long time (8 yrs), i need him to vacate my property within 6 months from now (by June 2018). He pays the rent but never on time; he used to delay most of the times sometimes even 4-5 months delay is common. He had been hesitant in vacating the property with an excuse of his daughters marriage which he wants to make it happen in this rented property. He has been struggling a bit financially for sometime now after demonetization; so i had been helping him by waiving the rent for few months. He runs a small tea shop. Recently his daughter got engaged; and marriage will take place by next month. He had asked me to lend him some money as a help for meeting his daughters marriage expenses, i told him that i can lend him if he promise to give it back within 6 months time. I need some advice on how to deal with this, i want to lend him the money and also want him to vacate the property in 6 months. Is it possible to lend the money (without interest) using a promisory note which is legally valid and also include some terms and conditions on vacating the property while giving the money back. How much expense will i have to incur if i want to lend him 1 Lakh INR OR 50000 INR.
Ask tenant to enter into leave and licence agreement with you for period of 6 months
2) on expiry of 6 months ask him to vacate the property
3) if he refuses file eviction
4) for advancing money as loan take post dated cheque for loan amount or promissory note . advance money only by cheque . take receipt for loan amount
5) if he fails to repay file summary suit to recover your money
1. If the tenant on expiry of tenancy or thereafter does not quit or vacate the tenanted premises then suit fir eviciton is the only remedy
2.For this you will have to first send him a eviction notice giving him an opportunity to quit the premises within one month from the date of notice.
3. The ground of such eviction would be default of rent and for bona fide requirement.
4. If you give money to him in loan then you should get a Promissory Note executed in your name.
Dear Client,
Lending money above 20 or 30,000 with interest valid with lending license, since u r gratuitously lending him some money, this can be done by notorised agreement ( proof of payment n purpose ). payment mode should not be cash.
Along with this, get the fresh rent agreement executed with new terms that new rent period will be effected for six months and that the previous tenancy got over and on his request extended for good cause ( daughter marriage ) and after the lapse of period, he will vacate the premises without any condition.
What is template for leave and licence agreement ? Also I prefer lending him money in Cash instead of cheque through promissory note, isn't that legal and what are the consequences i have to face if i don't use a cheque ?.
get it drafted by local lawyer
2) no template for leave and licence agreement
3)make payments through cheque only
4) if you advance payment by cash obtain receipt of cash payment
There`s no complications in cash, through cheque conformity of payment not disputed.
template for leave and licence agreement - contact for ti.
You could record the agreed terms and conditions in between you and the tenant in an agreement.
This agreement must be duly executed and stamped.
The condition on which the instant loan is being extend to the tenant must be clearly recorded in this agreement.
In case the the tenant fails to adhere with the agreement, it will be open for you to file a case against him.
Hello,
Enter into an agreement with the concerned person thereupon describing all the details of the terms of the said loan. I understand the thoughts going on in your mind, entering into a simple agreement alone will have the pressure on the mind if that person that he has to return the same within a specific time.
Since he is just a tea seller therefore it is not advised to have much legal complications also.
This is the sample for just agreement (https://www.faircent.com/sites/default/files/lender_borrower.pdf) but you are not required to have such complicated terms.
No issue if you are not charging any loan.
If he refuses to vacate after the time as mentioned by him you will have to send him a notice for eviction followed by a suit for eviction.
Regards
You can lend the money without taking any interest. no money lending licence is necessary for such a interest free lending. you should prepare a deed on rupees hundred stamp paper that borrower takes money with the promise to return it back within 6 month and vacate the premises within 6 month or any other period agreed between the parties. Delivery of money through promissory note is totally legal under the Negotiable Instrument Act.
Hi, it is advisable to lend him loan amount through cheque , and make a promissory note regarding the acceptance of loan .. also make a affidavit where he accepts to vacate the property after 6 months by returning your loan amount .. Get the affidavit notarised and make two witness signatures
It seems that you have taken too many advices on this issue please note that the leave and licence procedure is really difficult in your case and you may be in trouble and you may not be able to my kids if property by this agreement as your tenant is living in the subjective property from last 8 years any promissory note may not be signed and validated my cash payment even if it is bad in check without the interest it cannot be taken as for the vacation of the house advise you to talk to your tenant and let him back at the property in an amicable way.
1. The title of your query is ''Tenant not vacating the property' but the substance of your thread reveals that you want to know how to lend him the money. Be that as it may, you may lend him money in cash by making him execute a promissory note in your favour which will make you entitled to maintain a summary civil suit for recovery of money against him.
2. Get the promissory note drafted by a lawyer. To lend money in cash is not illegal but take post dated cheques from him,
You can rightly give him loan. You have every right to vacate him after the period. No consequences be made by you but you have to account for it
Lending money to your tenant is different to that of the rental issue.
For this lending you can enter into a loan agreement
For vacating him you can send him an eviction notice
You can allow six months time as requested by him in the same eviction notice and should be aware that this is not an undertaking but a strict agreement seeking to allow time to vacate.
What is template for leave and licence agreement ? Also I prefer lending him money in Cash instead of cheque through promissory note, isn't that legal and what are the consequences i have to face if i don't use a cheque
You dont have to be worried about the template, you can approach an advocate for this purpose