• Rental agreement

I am planning to rent my House. One of the interested party wants it for Play school for 4 years. Is it advisable to get in to agreement for 4 years or go with 11 months and extend once it expires based on mutual consent. Please advise.

Also, read the Gov. of TN instructed the Home owners and tenants to register the rental agreement. Please advise this too.

Thanks
Jaisankar
Asked 7 months ago in Property Law from Canada
Religion: Hindu

1) in residential area you need permission from muncipal corporation for running play school 

 

2) also society permission is necessary 

 

3) you can enter into agreement for 11 months or longer period with renewal clause. 

 

4) registration of leave and licence agreement is mandatory in some states like Maharashtra 

Ajay Sethi
Advocate, Mumbai
72059 Answers
4334 Consultations

5.0 on 5.0

1.  Legally there is no restrictions /bar for executing a duly stamp duty paid & registered rental agreement for 4 years or 11 months, PROVIDED proper strategic clauses including indemnifying you against any futuristic claim /demand /encroachment /etc....  from the Tenant, in future.

2.  IF the property is in a residential complex, THEN as per a Supreme Court order, any commercial activity of any kind is prohibited /barred in a residential only society /association.

Hemant Agarwal
Advocate, Mumbai
3677 Answers
19 Consultations

5.0 on 5.0

Go for a lease deed pay the stam duty n get it registered as well

Abhinav Sabharwal
Advocate, New Delhi
40 Answers

4.0 on 5.0

It's better you go for 11 months and after 11 month show a gap of one month every year.  It will also be advisable that agreement is in name of different person every year

Prashant Nayak
Advocate, Mumbai
16701 Answers
30 Consultations

4.6 on 5.0

See firstly you can make a leave and license of 11 months and can extend every year but the tenant will be running school so he might be needing lease for 3 to 4 years that also can be made as there is no problem in same also.

You can register the document before the sub registrar office the tenant has to pay stamp.duty and registration fee.

Shubham Jhajharia
Advocate, Ahmedabad
22882 Answers
93 Consultations

5.0 on 5.0

execute and register the rent agreement for the complete tenure (4 years) mentioning all terms and conditions in a clear and proper manner, to avoid any future legal complications,

 

Suneel Moudgil
Advocate, Haryana
1486 Answers
2 Consultations

4.5 on 5.0

Hi

It is always advisable to get the Rental Agreement registered (Need to comply Stamp Act & Registration Act).  Registered document will have evidentiary value.

Further, you can get the agreement registered for a period of two years and extendable for a further period of two years subject to convenience of both the parties. 

No harm in getting the same registered at once for four years.

As the agreement contains penal clause and also termination clause, you be careful while adding these two clauses.

Good Luck.

S Srinivasa Prasad
Advocate, Hyderabad
1080 Answers
6 Consultations

5.0 on 5.0

Hi

Please note play school is also a school (public place) and as such they need permission under zoning(residential/commercial) from municipality. 

Generally renting to schools has its own challenges as once the school becomes famous in locality, the land lords are forced to suffer .

Also courts show reluctance to grant any injunction to land lord as public interest(school children) are involved. So technically you cannot vacate them during academic year. 

Better go for registered lease agreement for a fixed period of 3/4/5 years.

11 month lease is generally considered month on month lease and not advisable in case of commercial leases. 

Also if you are a non resident indian, registered lease deed is preferred option to handle GST and income tax related processes (monthly rental invoices, rent remittances in NRO account, filing of GST, income tax annual returns etc) 

Hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
1715 Answers
326 Consultations

5.0 on 5.0

1.  A 4 year long rent agreement is not advisable for a landlord as the rent control laws in India are loaded heavily in favour of the tenants.

2. Instead enter into a 11 month long rent agreement in the first place and extend it annually. 

Ashish Davessar
Advocate, Jaipur
27476 Answers
812 Consultations

5.0 on 5.0

Any rent agreement for more than 11 months requires mandatory registration. Execute  of 11 months than notorised fine and no stamp duty payable.

Yogendra Singh Rajawat
Advocate, Jaipur
16743 Answers
21 Consultations

4.6 on 5.0

1.landlord tenant relationship will be governed according to lease agreement. With the expiry of the lease agreement the lease will come to an end. You can renew the lease agreement for further period.. 

2.residential area is acquired on rent/lease, the purpose of using the residential area for running a play school should be clearly mentioned in the lease agreement.

 

Mohammed Mujeeb
Advocate, Hyderabad
13837 Answers
6 Consultations

4.5 on 5.0

1. Leave and License Agreement for a period of one year or more is required to be registered. to avoid registration, people go for executing L & L Agreement for a period of 11 months and then renew it.

 

2. In your case if you want to give your house under leave and License, then you can execute the said L & L Agreement executed for 11 months and renw it four times or get the  L & L Agreement for a period of 4 years registered.

Krishna Kishore Ganguly
Advocate, Kolkata
23548 Answers
640 Consultations

5.0 on 5.0

You may better enter into a rental agreement for 11 months alone since it is a play school, then they may refuse to vacate after completion of 4 years citing different reasons and their helplessness.

If the law says that the agreement fr rent has to be registered then yo may have to do it.

Where did you get this information because ther is no such news yet about it.

 

 

 

T Kalaiselvan
Advocate, Vellore
61997 Answers
800 Consultations

5.0 on 5.0

a leave and license agreement can be made for 4 years

the agreement must be registered with Sub-Registrar

just check that there is no lock in period applicable for the licensor 

or even if there is any such lock in period, then it must be less than what is made applicable to the licensee

Yusuf Rampurawala
Advocate, Mumbai
4858 Answers
29 Consultations

5.0 on 5.0

Number of lawyers on this website from. Chennai contact any of them 

 

2) there must be clause of security deposit to be paid by licencee  

 

3) penal rent in case licencee fails to vacate premises 

 

4) renewal of agreement only with mutual consent of parties 

 

5) lock in period should be mentioned 

Ajay Sethi
Advocate, Mumbai
72059 Answers
4334 Consultations

5.0 on 5.0

See in the draft of agreement all the condition shall be incorporated that any immoral hazardous or any activity contrary to law is carried out the tenant shall be responsible and agreement shall be terminated immediately.

Shubham Jhajharia
Advocate, Ahmedabad
22882 Answers
93 Consultations

5.0 on 5.0

You can put the specific averment you want in the said agreement to safeguard your interest this can be done by a lawyer who drafts your agreement.  You can contact me through kanoon for drafting if required. 

Prashant Nayak
Advocate, Mumbai
16701 Answers
30 Consultations

4.6 on 5.0

Purpose/business shall be mention very clearly, use of only commercial purpose is ambiguous.

Yogendra Singh Rajawat
Advocate, Jaipur
16743 Answers
21 Consultations

4.6 on 5.0

1. All those clauses shall have to be incorporated in the L & L Agreement.

 

2. Please make a note that  even if you make a perfect L & L Agreement, there is no guarantee that the licencee will not create any problem while vacating your premises after 4 years.

 

3. So, you shall have to stay prepared for litigation and prepare yourself well in advance with all favourable documents/agreements etc. to win future cases, if any. 

Krishna Kishore Ganguly
Advocate, Kolkata
23548 Answers
640 Consultations

5.0 on 5.0

you can contact number of lawyers from chennai through this web portal. 

Mohammed Mujeeb
Advocate, Hyderabad
13837 Answers
6 Consultations

4.5 on 5.0

The questions you have asked shall be covered in the rental agreement conditions which will contain plenty of more clauses  besides your doubts raised here.

Hence you may better consult a local; lawyer in person and get the agreement drafted suiting to your taste and in accordance with the prevailing  law in this connection.

T Kalaiselvan
Advocate, Vellore
61997 Answers
800 Consultations

5.0 on 5.0

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