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.
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
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.
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
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,
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.
What is the correct language of lock-in clause In rent lease deed that shows the lessor and the lesse have mutually agreed upon to have a lock in period of two years?
Sir a clause can be drafted stating that neither the lessor or lessee can terminate this agreement for period as stated in agreement.
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
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
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.
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.
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