• Rent Lease Deed for playschool

Hi
I am about to start a playschool in a rented independent house. Although, I have the NOC from the builder as well as the RWA of the society for running the playschool, the landlord is not willing to mention in the lease deed that he is renting-out the house for this purpose. This deed will be eventually duly notarized. However, the landlord is insisting on giving a separate NOC for the school.

1. How safe will I be as a tenant who is about to invest a good amount of money in this property for running the playschool?
2. When a lock-in period of 2 years is shown in such a deed, what happens at the end of 11 months, does the renewal is automatic?

Thanks in advance!
Shalini
Asked 7 years ago in Property Law
Religion: Hindu

3 answers received in 30 minutes.

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11 Answers

1. See if the property is residential somebody can complaint and there can be difficulty though the agreement shall save tenancy rights but not protect school activity.

2.if period is 2 years then in that case 11 month renewable is not required.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Obtain permission from muncipal corporation for starting playschool in rented premises 

 

2) enclose permission received from landlord and RWA 

 

3) then only execute lease deed with lessor 

 

4) lease deed should be for at least 3 years with lock in clause 

 

5) lease deed should be duly stamped and registered to protect your interests 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1. You will not be safe as a tenant as the rights and liabilities originate from the lease deed. Tomorrow the landlord may file a petition for your eviction on the ground that you have put the premises to commercial use.

2. After the expiry of 11 months the tenant becomes a statutory tenant i.e his rights are then determined according to the rent control act prevailing in the state,

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

1) play school or day school do come within commercial activities which cannot be run without prior written permission of the soceity.

2)Permission received from landlord and Society should Enclose. 

3) incase if locking period is 2 years after  11 month renewal is not required.

 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Sir a clause can be drafted stating that neither the lessor or lessee can terminate this agreement for period as stated in agreement.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

during the lock-in period (ie 2 years ) the lessor/ lessee  cannot terminate the contract and whereas the lessee terminates the contract within the lock-in period  for any reason whatsoever  he has to pay the rent of the remaining of lock-in period to the lessor 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1.  Since the landlord is afraid that his property may be considered as commercial property and he may have to pay taxes @ commercial rates and also to avoid other problems he may be insisting on it, however since he has agreed to give NOC for the functioning of school in the premises, it should not be a botheration to you. 

You may go ahead.

 

2. In a 11 months rental agreement there cannot be a lock in period of 2 years, first clarify this and then seek answer for your query

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Rent agreement providing "lock in period" of 24 months is legal and justified. The "lock in period clause" in the Rent agreement is binding on the parties and no one can permitted to come out of the said clause before the expiry of the initial lock in period provided in the Rent agreement.

Terms in an agreement prescribing for a time period within which any one of the contracting parties or either of the contracting parties cannot terminate the contract is known as a lock-in clause.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

You can go ahead if you trust actually the agreement should state the purpose. The lock-in period is the period in which you can't terminate the lease agreement. Yes it's automatically renewed for the further period of 11 months if the agreement is for 22 months. Else it will terminate.

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

  1. As per the information mentioned in the present query, makes it clear that the reason of taking the property of lease is not appreciated by the landlord.
  2. And this may also be the reason or would say intentionally on the part of the landlord to take back the possession of he happens to ask for the eviction.
  3. The exact meaning/ interpretation of the lock period, would only be as for the said period neither of the party can claim for dispossession.
  4. So, you need not to worry about anything until and unless there is any specific clause you may find which talks about the dismissal/ or renewal after 11 months though that would not be the one as 2 years lock period is already there.

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

The lock in period should be specifically mentioned in the agreement and amount of penalty in case either party does not comply with the agreement should also be mentioned.if your play school takes off and you start earning good money then if you have to shift it would be very difficult therefore increase the lock in period.

Regards 

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

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