• Sale of lease expired house property

Dear Sirs

We have 2 house properties in Sausar Dist : Chhindwara MP. These are ancestral properties transferred in my wife's name and my name after due paperwork done at municipality at Sausar. We are in possession of these properties. One of the house is in dipilated condition and the other is a concrete double storeyed building. We do have the sale deeds executed by earlier owners in the name of my parents about 50 years ago. Presently we stay at Ahmedabad and visit Sausar occasionally. My age is 76 and my wife's age is 67

We were planning to dispose off these houses but we came to know that the lease for these houses has expired. So buyers are not ready to buy these as sale deed can not be executed for such properties. So the buyers are not ready to pay reasonable price or asking to sell at almost throwaway price.

Somebody told us about the recent judgement of Jabalpur High Court that the local bodies may execute fresh lease deed or sale deed after charging suitable fees from the current owners and that some of the local bodies in MP have already initiated actions/procedures and transferred the properties to the present owners. We have also leant that some local influential people are not ready to renew lease/sale deed as this involves unnecessary high costs as they are unlikely to sell their house properties for quite sometime.

In view of the above facts we would like to know

A. Can we request the local municipality legally ( in view of the above judgement of HC ) to execute lease/sale deed after paying suitable charges. How much time consuming it would be?

B. If we decide to sell the properties in the existing situation, What sort of agreement needs to be done with buyer so that neither he nor we land up in a legal mess in future. Any guidelines you may suggest for arriving at reasonable price for the houses.
Asked 3 years ago in Property Law from Ahmedabad, Gujarat
Religion: Hindu
A. Well, without seeing the lease deed and the decision of high court as you have mentioned it is difficult to advise. In general the lessor , if the same is govt authority, can extend the lease even after expiry.

2. you can sell the property during the subsistence of the lease you can sell the proeprty by way of deed of assignment. 
Had the lease deed been show here further advice would have been given.
Devajyoti Barman
Advocate, Kolkata
13188 Answers
175 Consultations

5.0 on 5.0

1) if lease deed has expired you can make application to muncipal corporation for renewal of lease .

2) we cannot say how long Muncipal corporation will take for renewal of lease . it may renew the lease subject to increase in lease rentals 

3)for sale of leasehold interest you would need consent of the lessor . 

4) read the terms and conditions of lease deed signed by you with the lessor
Ajay Sethi
Advocate, Mumbai
46891 Answers
2772 Consultations

5.0 on 5.0

1. If the sale deed was executed in your parents' name then on what basis do you claim the property is ancestral.

2. How were the properties transferred to you and your wife.

3. When the property has been transferred to  you and your wife then the ownership has passed to you. 

4. Sine the lease has expired no prudent buyer will purchase the property unless the fresh lease has been brought into existence. 

5. You can apply to the local authorities to execute a fresh lease in your favour, but this would boil down to the discretion of the authorities. They may refuse to make a fresh lease in your favour. The process is likely to take 1 or 2 months. If it takes longer then you can seek the intervention of the High Court. 

6. You cannot sell the properties if the lease has expired as the title would not pass.
Ashish Davessar
Advocate, Jaipur
23176 Answers
641 Consultations

5.0 on 5.0

1. If it is a lease hold property, its title can not be convayed through Sale Deed, i.e. it can not be sold. It can be sub-leased or assigned, if the same is permitted in the original lease deed. However, when the leased period is over, the title of the property goes back to the leassor for which you can no more sub-lease it. Immediately file an application for renewal of the lease agreement before the Leassor. If it takes more than 3 months, file a Writ Petition before the High court against govt inaction,

2. You are no longer the leasee of the said property after the said lease agreement has expired. Before the said lease agreement is renewed further, you have no locus standii in connection with the said property legally.
Krishna Kishore Ganguly
Advocate, Kolkata
18818 Answers
454 Consultations

5.0 on 5.0

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