You can execute registered lease deed wherein you give your premise on lease for period of 10 years
2) take adequate security deposit
3) there should be clause that in case of failure to pay rentals on time lease would be terminated
Property on rent for 10 year to individual
Hi, I have one commercial property in surat, Gujarat. One of my neighbour who is running hospital on same floor asking it for on rent for 10 years period. So my question is : is't safe to give it on rental for 10 years to an individual? Someone told me its not safe. Whereas i see many banks or corporation have such 10 years property on lease.
Asked 4 years ago in Property Law
Religion: Hindu
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18 Answers
Is there any risk of ownership? I mean can they claim their ownership by stating that they are using it for 10 years long?
Asked 4 years ago
lessee cannot claim ownership of property
registered lease deed is a must to protect your interest
if you dont want to give for 10 execute leave and licence agreement for 3 years with renewal clause
Execute due lease agreement with specific conditions and get it register. No risk to ownership. Extension of agreement - only owner will decide or refuse.
Revision of rent every years etc.
No stake on ownership under lease agreement.
Yes it's safe but give it on leave and license agreement. Furthermore keep a eviction clause in the same with notice period
Yes it is . You may have to enter into a lease agreement and get that registered by payment of requisit stamp duty with proper exit clause.
- Yes, you can give your commercial property for a period of 10 years.
- As per the Registration Act, the registration of a lease agreement is mandatory if the leasing period is more than 12 months.If an agreement is registered, stamp duty and registration fee needs to be paid for it.
- You should clearly mention the clause of termination of tenancy .
- As per law, A tenant can never claim ownership, as it is settled law, that : ONCE A TENANT, ALWAYS A TENANT.
1. NO. There is no risk whatsoever, PROVIDED the Rent /Lease Agreement is duly Stamp Duty paid and Registered. Alongwith the agreement, you must also take a Indemnity Bond, from the Tenant, to vacate the premises on expiry of lease period or else he will indemnify you against all related losses and litigation costs etc....
2. IF the Rent /Lease Agreement is duly Stamp Duty paid and Registered, THEN "NOBODY" can claim adverse possession or claim any type of ownership or create any dispute, while vacating the property.
You execute agreement to let out the premises on rent and get it registered by paying appropriate stamp duty and registration charges with the concerned SRO.
No problem if it is let out.
No risk to your ownership.
They cannot claim ownership, it is wrong notion.
A lease agreement can be defined as long term lease agreement if it extends for a minimum period of ten years, or if the lease agreement has been concluded for an undetermined period and has a right of renewal upon the choice of the lessee for periods that’s make out a period of at least ten years.
It is important to note that lease agreements are not enforceable for periods exceeding 10 years if it has not been registered against the title deed of a property as a long term lease.
There is no law which stipulates that lesse can claim the rigt of the property after 10 years.
See a registered lease for 10 years with proper termination clauses can be made and registered before sub-registrar office. It would be safe to give property on rent through registered lease.
If there shall be registered lease they cannot stake any claim, they cannot default on payments. Engage an advocate to draft proper lease with all clauses and register same with the sub registrar office on payment of stamp.duty.
You may give such a property on rent. But make a registered agreement with an arbitration clause incorporated in it. Also hefty fines if rent not paid on time.
No they cannot do so. Even if they live there for 100 years unless you abandon your claim.
1. It is not wise to enter into a rent agreement for 10 years in the first place. You can have a rent agreement for 3 years and renew it annually thereafter.
2. There is no question of the tenant becoming owner if the rent agreement is renewed annually.
You can let it out on a 10 years registered lease agreement with the termination clauses properly included in it so that unnecessary litigation can be avoided at a later stage.
No.
By taking the property on lease for a long term cannot confer title to the property on them.
You may better have this agreement by a registered deed.
Rent agreement is not safe.
Make lease agreement.
Much better is to go for leave and license agreement. It doesn't transfer any interest in the property but a right to use the property.
