• Owner of land has leased their land for petrol pump and now they want to sell their land to us

Sir,
The owner of the land has been leased for 30 years to HPCL for a petrol pump for Dealer operated petrol pump. Now if we buy the land how the lease will continue? Will the petrol pump license will continue or it will be terminated?
Asked 3 years ago in Property Law
Religion: Hindu

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12 Answers

Check the terms and conditions of lease 

 

2) there must be clause in lease deed regarding termination of lease 

 

3) there must be clause regarding sale of land leased to petrol pump 

 

4) owner can terminate the lease and then sell land to you 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

The first aspect is that the property owner is always free to sell at any time, but the lease agreement will remain valid and in full force until its expiry date. The property owner cannot cancel the lease because of the sale.

When a leased property is sold to another owner during the lease term, the terms of the lease will prevail

Selling a leasehold property is similar to selling any other property. However, some complex paperwork might be involved in selling such properties. It is easier to sell your property if the lease is for a longer period. 

Then the new owner /buyer shall enter into a new lease agreement with the tenant on the same terms and conditions as the current lease agreement..  

When the prescribed time of the lease expires, the lease is terminated. Specified event – When there is a condition on time of lease depending upon a happening of an event. Interest – Lessor's interest to lease the property may cease, hence resulting in the termination of the lease

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

1. The lease between HPCL and the original owner of the land shall remain valid and binding upon the new owner of the land, provided HPCL has not defaulted on its contractual obligations.

2. The new owner shall be bound by the terms and conditions of the lease as set out in the original agreement.

3. The petrol pump license shall not be terminated as a result of the change in ownership of the land.

4. The new owner may negotiate with HPCL for modifications to the existing lease agreement.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

- As per law, the owner of the land is free to sell his land , and none having right to stop the same even the HPCL.

- However, if there is condition mentioned in the lease deed for the termination of the lease , then the HPCL can take benefit of the same, hence you should peruse the lease deed before purchasing the land.

- Further, if there is mention that the owner of the land cannot sell the land before 30 years , then the lease will continue with you . 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

You can buy the land but it will be subject to terms of lease agreement. Lease will continue till its expiry. It is safe to take the signature of leasee as attesting witness on the sale deed.  

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

If you are planning to buy a land that has already been leased to HPCL for 30 years for a Dealer operated petrol pump, you will need to check the terms of the lease agreement. Generally, the lease agreement will contain a provision to address the situation if the land is sold during the lease term. It is important to review the lease agreement for any conditions or obligations that you would need to abide by if you become the new owner of the land. You will also need to negotiate with HPCL to ensure that the petrol pump license continues under the new ownership. I would highly recommend seeking legal advice on the basis of the doucments before proceeding with the purchase.

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

You need to take a fresh lease or execute sub lease for the remaining period 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Dear client,  

If you purchase the land that is currently leased to HPCL for a petrol pump, the lease agreement will typically continue unless there is a clause in the lease agreement that states otherwise. Generally, the lease agreement will have provisions for assignment or transfer of the lease to a new owner of the land.

If you plan to purchase the land, you should review the lease agreement carefully to understand the terms and conditions related to the assignment or transfer of the lease. You should also speak to the current lessor and HPCL to understand their obligations and responsibilities under the lease agreement.

Regarding the petrol pump license, it is important to note that the license to operate a petrol pump is generally issued by the government and not by the lessor or the landowner. As long as the petrol pump license is valid and in compliance with applicable laws and regulations, it should continue even after the transfer of the lease to a new owner of the land. However, you should also review the terms and conditions of the license agreement to ensure compliance with applicable laws and regulations.

 

 

 

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

When a leased property is sold to another owner during the lease term, the terms of the lease will prevail

Selling a leasehold property is similar to selling any other property. However, some complex paperwork might be involved in selling such properties. It is easier to sell your property if the lease is for a longer period. 

In the given situation if fresh NOC is required to be obtained, you may have to comply with the prevailing rules.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

It is necessary to peruse old NOC to advice 

 

consult a local lawyer 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

You can do so

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

It depends on the specific requirements and regulations of the government authorities involved. In general, if there are any changes to the ownership or use of the land, it may be necessary to obtain a new NOC from the relevant authorities. It would be best to check with the local authorities or regulatory bodies to determine if a new NOC is required for the transfer of ownership and the addition of the petrol pump. It is always advisable to ensure that all necessary permits and approvals are in place to avoid any potential legal or regulatory issues in the future.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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