No deed of cancellation deed is necessary
simply letter from lessee that he is vacating premises is sufficient
My tenant and I entered into a registered lease deed for a property i own in Hyderabad. The lease ends on August 31st 2022 but the tenant has informed me of his intention to vacate the property on July 31st 2022 which is one month before lease expiry. Does the lease have to explicitly cancelled through a cancellation deed? Does the lease still automatically expire on August 31st 2022? Prem
No deed of cancellation deed is necessary
simply letter from lessee that he is vacating premises is sufficient
What happens to the encumbrance certificate that currently shows me as the lessor and the tenant as the lessee? Won't that lease continue to stay on the records of the sub-registrar's office?
Dear Client,
if the tenant wants to vacate before the term is completed, then he should give a notice according to the agreement terms. Typically, when the tenant has to vacate the house before the end of the lock-in period, the security deposit gets forfeited by the landlord.
Since it is a registered lease deed it can be cancelled through a registered cancellation deed. The cancellation has to be bilateral. The tenant should personally sign the cancellation deed which you can then present for registration in the office of the sub-registrar. or if you think it may not create any problem as it is just one month then just leave it and it will automatically get terminated after the said time completes.
You both can execute a cancellation deed cancelling the original lease deed for the reasons stated therein, or you can terminate the current lease agreement for the reasons you rely upon and have it signed by the tenant also.
This need not be executed by a registered document if there is a proper taking/handing over completed after settlement of all dues including the compensation for the damages, if any.
The lease agreement is only for 11 months, hence even after the expiration of the original term of the lease agreement, the reflection in encumbrance about this will continue to appear.
Since it is not an alienation of property, this encumbrance is not of much importance.
Lease is granted for specific period only
On expiry of lease period you don’t need any cancellation deed
even if it continues in record of sub registrar office period of lease has expired
If it is a matter of one month then there is no need to execute cancellation of the lease deed as it would cost you time and money.
You may execute a cancellation deed ad not get it executed. Later with the new tenant execute a fresh deed in August.
regards
On expiry of leas on 31st August, it will terminate by efflux of lease period. Submit the expiry lease to the office of Sub-Registrar with application to carry out appropriate changed in records so that the same will be reflected in ec.
Even if the EC shows the entry relating to the lease agreement, it does not affect your title and ownership of the property in any way. Though a cancellation deed may be registered, it is not legally necessary.
No need for a registered cancellation deed just take an email from him and complete all other procedure
- Since, the said lease deed is going to ends in August , 2022 , then as per law if any party want to cancel the said lease deed , then at least one months notice to the other party is necessary.
- Further, as the said tenant already inform you that he is going to vacate the premises after terminating the lease deed, then this deed will automatically cancelled on 31.08.22 atomically after your approval.
- Hence, there is no requirement for the execution of cancellation deed, as the expiry date of this deed is till August.