Old lease property settlement with landlord
I am asking this on behalf of my friend. Take it as my own. We are running a tyre retreading business in an approximate workshop area of 1,000 sq.ft for the past 32 years on old lease. The entire land of landlord might be around 7000 sq. ft. There are other old tenants on approx. another 3,000 sq.ft. The following is the situation.
1)We have been paying rent (mostly cash) for the past 32 years initially to the landlord & then to his 2 sons. In these 32 years there may be atleast 5 to 7 years of time when we gave them cheque.
2) The light bill & water bill is on our name since then.
3) We are having a shop act of our company on that premises for atleast the past 25 years.
4) In the earlier times, my father has paid the landlord a bulk amoumt as an annual or 6 monthly rent by cheque.
5) Now the sons have given us two offers. Either to vacate the workshop premises or to buy a shop in the new building that they are planning at actual market costs.
What are the legal sides in this issue. How can we get maximum area at low or construction cost. How can we strengthen our sides so that we gain maximum.
Asked in Property Law from Pune, Maharashtra
2) it is necessary to peruse lease agreement signed by you with landlord
2) what is the lease period mentioned in the agreement ?
3) do you have receipts of lease rentals paid by you ?
4) when does lease expire?
5) if you refuse to vacate premise lessor will have to file suit for eviction
6) it may take couple of years to be disposed of
7) if you are getting shop in the new building at discount to market rate grab the offer
8) if you have to pay market price doesn't make sense to take shop in the new building
You are a tenant and remain to be a tenant till date. You have your tenancy rights protected by law, i.e., you cannot be evicted by your landlord without due process of law.
Actually your landlord is ding you a favor by offering to sell the property to you though the rates may be exorbitant which can be negotiated. In fact he need not take your consent to sell the property to a third person without having you vacated if the buyer is ready to buy the property with the tenants in it.
You cannot claim the rights of buying that too at the rate fixed by you just because you were a tenant for all these years. The electricity connection and water supply connection on the name of the tenant shall not confer the title of the property to the tenant, moreover this being a very old building over 32 years or so, the landlord may claim it to in dilapidated condition need to be demolished and require the property for his own use thereafter, All these grounds will be sufficient for him to reclaim the property terminating the tenancy through a court of law by filing a eviction suit which may hamper your routine business due to litigation.
Therefore it is wise to negotiate and buy the property at a rate mutually agreed upon by both to solve the issues amicably avoiding the litigation and the costs involved therein which may include loss of money, time and energy. Legally there is no provision that the landlord has to sell the property only to the tenant just because they were there for a very long period.
1. It is for you to accept or reject the offer made by the landlord.
2. If you reject the offer to vacate the workshop the landlord will have to file a lawsuit for your eviction in the court, which you can contest in defence by engaging a lawyer. Unless the court orders your eviction you cannot be evicted from the property.
Hi, as per law you are only a tenant in the premises so you have no option either you have to vacate the premises or buy a shop in the building at market price other then that you have no remedy at all.