• Purchase a property which is under leave and licence agreement

I have to purchase a commercial property but that property is registered with leave and liscence aggrement to another person for 5years by previous owner ..we are interested in purchasing the property and ready to continue the same liscence with the present liscence
Please let me know whether the present owner can sell this property to me
Asked 5 years ago in Property Law
Religion: Hindu

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19 Answers

Hi, the current owner can transfer the property of he still holds the title of the property .. If the property is given on lease to a third party then it do not effect the titleship of the real owner .. Kindly share the leave agreement for better guidance

Hemant Chaudhary
Advocate, Gurgaon
4627 Answers
67 Consultations

4.9 on 5.0

The lease survives the sale and the new owner must honor it. Unless there is a special clause in the lease giving the landlord the right to terminate in case of sale.

When you purchase a property with existing tenants, you may have to honor the lease but I would definitely check the lease agreement.

Yes. When a buyer buys a property with an existing lease, your lease is valid until the expiration date. Then it is up to the new owner to either renew your lease with or without an increasing your rent OR not renew your lease at all. The new owner must give you a specific number of days by state law to notify you before your lease expires.

You can purchase property as per the Transfer of Ownership Act,

Transfer of Property Act, 1882

55. Rights and liabilities of buyer and seller

In the absence of a contract to the contrary, the buyer and the seller of immovable property respectively are subject to the liabilities, and have the rights, mentioned in the rules next following or such of them as are applicable to the property sold:

Ganesh Kadam
Advocate, Pune
12638 Answers
205 Consultations

4.9 on 5.0

Without checking the greement it's difficult to answer. Though the property is under leave and licence agreement the owner still holds the title over property. If the lease is still subsisting you are bound to honour it. Leave and licence agreement gives lesser scope for tenant. This agreement grants permission to reside within the premises, for the duration defined in the agreement, without granting the licensee any stake or interest in the property. So you can go ahead with purchase if the owner has clear marketable title.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

Owner can sell the commercial property to you

2) the consent of licencee is not required for execution of sale deed in your favour

Ajay Sethi
Advocate, Mumbai
89848 Answers
6516 Consultations

5.0 on 5.0

Mostly, selling/buying a property with a sitting licensee is permissible and hence, you can go ahead and purchase this property.

Just as a matter of caution, scan the leave and license agreement to find out if there's a clause preventing the seller to sell this property during the operation of the leave and license agreement.

Vibhanshu Srivastava
Advocate, Lucknow
9444 Answers
255 Consultations

5.0 on 5.0

To find out whether or not the consent of the licensee is required for sale, just scan the entire leave and license agreement thoroughly.

Vibhanshu Srivastava
Advocate, Lucknow
9444 Answers
255 Consultations

5.0 on 5.0

NOC is not required. Please go through agreement if it mentions owner can termimate the agreement by prior notice then he can do so.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

After lock in period is over you ask old owner to terminate the leave and license agreement. Than afterwards you registered sale deed on your name. And later make leave and license agreement with you.

Ganesh Kadam
Advocate, Pune
12638 Answers
205 Consultations

4.9 on 5.0

Yes definitely you can purchase the same but you will be liable to continue with the terms of the said leave and license agreement which has been made by the sellers

Anilesh Tewari
Advocate, New Delhi
17968 Answers
377 Consultations

5.0 on 5.0

Also yes he can terminate the said leave and license agreement by giving a one month notice, and then sell the land to you.

Regards

Anilesh Tewari
Advocate, New Delhi
17968 Answers
377 Consultations

5.0 on 5.0

Consent of licencee is not required fir sale of property by licensor

Ajay Sethi
Advocate, Mumbai
89848 Answers
6516 Consultations

5.0 on 5.0

Dear Sir,

It is better to purchase with the notice and consent of the person who is now in physical possession of property under the agreement otherwise you purchasing not only the property but also litigation. For more details contact me.

Kishan Dutt Kalaskar
Advocate, Bangalore
6069 Answers
409 Consultations

4.8 on 5.0

You can ask the present owner to get the leave and licence agreement transfer in your name on the date of registration in presence of the leave and licence agreement holder let the leave and licence agreement holder to sign the agreements in your name as owner of the property.

Rajashekar
Advocate, Bangalore
584 Answers
4 Consultations

4.8 on 5.0

Yes, the property can be purchased.

Kiran Kamthe
Advocate, Thane
27 Answers

4.9 on 5.0

You can enter into an agreement with the tenant afresh for the remaining period from the date of your registered sale deed.

The seller has to officially intimate about this fresh lease agreement to the tenant and should ask the tenant to continue the lease agreement with the new owner till its expiration and future rents to be paid to the purchaser from immediate forthwith and to collect back the advance amount from the new buyer.

The seller has to handover the deposit amount to the buyer or to receive the sale consideration amount deducting the said advance amount.

The present owner can sell the property as is where is basis.

T Kalaiselvan
Advocate, Vellore
80015 Answers
1674 Consultations

5.0 on 5.0

s the consent of linencee needed in this deal in favour of present owner or purchaser..

The seller can intimate the tenant by a communication sent to this effect by a registered post.

years lock in period for him.present owner can. Terminate the agreement by prior notice of One month.

NOC OR CONSENT REQUIRED

NOC of the lessee is not required, however he has to be intimated about the proposed sale of the property.

T Kalaiselvan
Advocate, Vellore
80015 Answers
1674 Consultations

5.0 on 5.0

No the consent is not need for the licensee, but the licensor has to inform to the licensee of the same. you can purchase the property and later on can execute fresh the leave and license

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

4.5 on 5.0

1. The new Purchaser can buy the property alongwith with the existing L&L Tenant, subject to proper clauses in the Sale/Purchase Deed.

2. WITH the consent of the L&L Tenant, IT would be prudent to terminate the previous L&L agreement by the old Owner AND a new L&L Agreement be duly executed by the NEW-Purchaser with the L&L Tenant.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

The present owner can sell you the property but only after the lease agreement is over. Else if the agreement has termination clause for the said lease after giving notice to the other party the same can be done. If he sells you before termination you will not get the possession.

Prashant Nayak
Advocate, Mumbai
28570 Answers
101 Consultations

4.4 on 5.0

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