There is no middle way all the required averments need to be recited in the said agreement
Addressing L&L Agreement on Sale Conveyance Deed
Buyer doesn't want anything mentioned on Sale Conveyance Deed in reference to the L&L Agreement ("L&L") of a Commercial Property (Shop) which is leased out to a tenant on L&L. And also the Buyer expecting to state on Sale Conveyance Deed that Seller is giving Vacant Possession to the Buyer.
The Seller wants to be upfront on it, so the Seller doesn't want L&L Agreement to be omitted stating out on the Sale Conveyance Deed. The seller also isn't comfortable to say that Vacant Possession is given to the Buyer, when it isn't true (because the Shop is leased out to the tenant).
What kind of paragraph be included in the Sale Conveyance Deed to satisfy both the Seller and the Buyer?Asked 7 hours ago in Property Law
Religion: Hindu
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4 Answers
It should be mentioned that at present property is given on leave and license to licensee for period of 11 months and one month notice has been given to licensee to vacate premises
on execution of sale deed seller shall deliver vacant possession of shop premises
The intention of the seller is not at all appearing to be fair or bona fide.
Any such attempt on the art of the seller is to be seen as an attempt to conceal something sinister.
Either disclose everything which is been transferred or do not go for this property.
The seller should not misrepresent that vacant possession is being delivered.
He should disclose that the property is occupied.
He may not have to use the words “Lease & Licence Agreement”, avoiding buyer discomfort.
The clause can be made in the following words
The Vendor states that the Property is presently in the occupation of an existing occupant under an arrangement of use and occupation. The Purchaser has inspected the Property and is fully aware of the said occupation. The Vendor shall deliver to the Purchaser, on execution of this Deed, such rights, title and interest as the Vendor presently holds in the Property, together with constructive possession thereof, and the Purchaser shall thereafter be entitled to deal with the said occupant at its own discretion. It is clarified that physical/vacant possession is not being delivered on the date of execution of this Deed.”
The deed does not explicitly mention the L&L Agreement (which the buyer is trying to avoid), but still acknowledges occupation.
Buyer receives constructive possession, meaning title with right to collect rent.
Alternately the below clause can be inserted
The Vendor has disclosed to the Purchaser all material documents relating to the existing occupation of the Property, and the Purchaser confirms having reviewed the same to its satisfaction. The Purchaser accepts the Property on an ‘as is, where is and as is occupied’ basis.”
This keeps everything transparent without naming the L&L agreement.
