Sir's, My father had given a shop to rent in a building for a corporate medical store and signed a RENEWAL lease agreement on 100rs stamp in Jan 2021 for 5 years (until end of dec 2025). Original copy is with tenant and was not registered. In agreement it clearly mentioned that "lessor shouldn't rent any portion of the building for the competing business. My father expired in May 2021. Until March 2022 rent bean deposited in dad's bank a/c after deducting TDS. Once we informed about dad they said they will deposit in my mothers bank a/c after signing fresh lease agreement for the remaining period but not wiling to change any terms.(Still not signed, rent was not deposited for last month) As a legal heirs, do we need to bound to the lease agreement signed by my dad? if the lease aggrement was not registered. if so how can we terminate? Or can we rent out a portion to another medical store? if not what if I rent it to another medical store? Can you plz let me know my options. Thanks
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You are bound by terms of lease deed signed by your father
2) it is necessary to peruse lease deed to advice
3) there must be termination clause in lease deed
4) if lessee commits breach of terms of lease you can terminate the lease
5) you cannot rent out portion of building to another medical store as per terms of lease
You can go through the terms of lease deed and as per the same can give eviction notice to him
Even though the landlord has died in between the lease agreement the lease will remain effective till the tenure of the agreement or until it is in force without default whichever is earlier.
You and other dependents of your deceased father are the legal heirs and successors in interest to succeed to the estates of your father who is reported to have died intestate, hence all of you have to sign the supplementary lease agreement with the tenant for the remaining term of the current lease agreement or have to pay the charges to the tenant if you terminate the lease agreement in between without any fault on the side of the tenant.
You all can authorise of among you to act on the interests of others by executing a power of attorney for this purpose and the power agent will take care of the interest of all the legal heirs.
- As per the Registration Act, 1908, the registration of a lease agreement is mandatory if the leasing period is more than 12 months.
- Since, that lease agreement is for more than 12 months , and on Rs.100/- stamp paper , and an unregistered , then this lease deed is not valid , and it is not admissible in evidence before the court.
- However, this agreement can be considered as a proof of payment of said amount , but cannot be a lease deed , and hence the tenancy may be considered as month to month basis , even the tenant has paid amount for 5 years
- Hence, this agreement can be terminated after giving legal notice under section 106 of transfer of property Act to the tenant by the legal heirs as well , on the ground of its validity and requirement of a new agreement between the parties.
- Further, you can also file an eviction suit before the court , if the said tenant not agree upon your conditions.
- However if the duration of lease deed i.e. 5 years not mentioned in the lease deed , then it cannot be terminated.
Any agreement of rent is required to be registered if the duration of rent is more than 12 months. Your rent agreement is not registered and the original is with tenant though the original should be with landlord. As the rent agreement is not registered if you lease a portion to medical store, the tenant cannot go the Court. It at all he approaches Court he will have to pay heavy penalty of ten times of the stamp duty which will be huge considering the duration of period. As rent might be more than 3.5 k he cannot even approach Court of Rent Controller. The tenancy becomes oral for which general terms of lease as stated in Transfer of Property Act, 1882 excluding term for not renting property to competing business. You can lease the property to anyone, the tenant does not have any case against you. As the agreement is not registered you can ignore it as not within your knowledge and it is not binding on legal heirs.
- First of all, You are definitely bound by terms of lease deed signed by your father.
- Now what the solution for you if you still want to proceed then it is necessary to peruse lease deed to advice properly. There will be termination clause in lease deed which you have to use.
- You should not rent out any portion to another medical store as per terms of current lease
Dear Client,
As per the facts which have been provided, you need to go through the terms and conditions of the lease agreement.
Thank You.
the legal heirs of the lessor will be bound by the terms of the lease deed between the deceased lessor and his lessee
however if there was a leave and license then the legal heirs of the licensor are not bound by such leave and license agreement
