• Apartment purchasing with rent agreement for school

Dear Sir
Am going to purchase a apartment 2bhk .
The construction company saying that if you purchase a 2bhk . U will get rent of 10Rs per sft. 
Example 1060sft 10600Rs rent per month 5% increase every year. 10years agreement with one of the bigg corporate school in Guntur Narayanaschools. 6years lock in period 2bhk will for hostel purpose and class room purpose constructions. What will be the risk involved for me if at all some thing goes wrong. Apartment 70% completed

Thanks and Regards
Joseph
Asked 4 years ago in Property Law
Religion: Hindu

6 answers received in 2 hours.

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11 Answers

1. The proposal is worth it, from Income Tax point of view, BUT subject to proper strategic clauses, in the sale-agreement, for your financial safety.

2. A separate agreement must be executed for the lease /rental component, for the Ten year period.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

1. Any type of agreement involving immovable property requires to be seen in every detail.

2. The terms you have mentioned is minuscule to form an opinion whether it is safe to protect your interest.

3. In other words unless and until I can manage to go through the contents of the agreement itself I ca not give any advice on its validity.

4. So either share the agreement here or show it to some local lawyer.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

These are categorized as Boarding houses in the Zoning Regulations and allowed in residential use zone, and usually operating on a small scale,but

a) They need to be located in independent building. While there is no minimum plot size requirement, the optimum plot size is 400 sq m. For a 400 sq m plot, you can get upto 4 floors permission + stilt parking floor of 2.5 m. The setbacks or margins to be left would be: front: depending upon road width and ranges from 10 ft to 20 ft; remaining sides – 8 ft.

(b) You will need to ensure that the abutting road width is minimum 30 ft.

(c ) You will need NOC from the Health Deptt of GHMC.

(d) You will require prior NOC from the Fire Services Deptt.

(e) You should obtain NOC from all adjoining neighbouring plots.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

1) Nothing wrong in it you are getting ready position business as a rent for future period. So its good deal just make proper draft registered. And you should be the owner of 2bhk.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

If this is an apartment then definitely there will be restriction of conducting classes in the apartment but it department is intended for the use of hostel are for the living of the staff it can be as per the rules of the society governing department any lease period if it is allowed by the society to go for there is no problem entering into the lease agreement for 10 years as per the term agreed between both the parties

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Check whether apartment can be used for commercial purposes

2) if building is for residential purposes you cannot use apartments for commercial purposes

3) your agreement with builder must mention date of delivery of possession

4) penalty payable by builder for late delivery

Ajay Sethi
Advocate, Mumbai
87976 Answers
6207 Consultations

5.0 on 5.0

Hello,

You should prepare the agreement with the help of a lawyer and keep your terms clear .

Regards

Swarupananda Neogi
Advocate, Kolkata
2941 Answers
6 Consultations

4.7 on 5.0

This is my response to you:

1. Make sure that the society grants you an NOC for running a school or hostel;

2. Generally you need to complete all the formalities;

3. You should provide more details what is total plan;

4. Rent fixed may be standard rate, you can consult an agent or property consultant of that place;

5. Or you can engage a lawyer and let him/her do the formal and documentation work on your behalf.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Sir the sell agreement and the long rent agreement should be registered and properly stamped because there can be issue while school refuse to vacate after the period of 10 years and you have to go.through long court procedure.

Further a high security amount can be asked.

Further a flat for residential purpose cannot be used for school hostel and classes therefore if anything prohibits school from running it may close down and the they refuse to pay you can suffer losses.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Do a Registered contract with them with specific conditions and terms stated. If they don't perform it you can approach civil court for specific performance.

Prashant Nayak
Advocate, Mumbai
27291 Answers
88 Consultations

4.4 on 5.0

If you buy this apartment for investment purposes then you may go ahead or if you want it for your own use then this will become a menace if you cannot vacate them from the apartment.

It is your own proeprty hence you decide whether to live in it or to let it out on rent and for renting it out to the school children as a hostel, sometimes the association may object and you may even require to obtain licence from local civic body.

You can have an undertaking from the school authorities for taking responsibility all the mishaps and any untoward event that may take place before entering into any such agreement.

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

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