• Legal validity of multiparty tenant agreement

I wish to rent my apartment to 3 Bachelors on 11 months tenancy agreement. They want to have a multiparty tenant agreement (Land lord on one part with 3 tenants on one part), since their company HR insists on the same for income tax deductions. I am doubtful about the legal validity of such an agreement. Could you please help to confirm if such agreements are legally valid ?
If this is legally valid, then I need help to verify the draft tenancy agreement. Can I forward it to a lawyer for legal advice via email, since I am not residing in Chennai at present ?
Asked 11 months ago in Property Law from Singapore
Religion: Hindu
1) you can enter into leave and licence with company for use of flat for its employees

2)you should avoid giving apartment to 3 bachelors 

3) obtain prior permission of society before giving premises on rent to 3 bachelors

4) most societies are reluctant to grant permission for giving premises to bachelors 

5) you can give premises on leave and licence to 3 bachelors if you so desire 

6) get agreement vetted by a lawyer 

Ajay Sethi
Advocate, Mumbai
26014 Answers
1415 Consultations
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Hi 
technically you are to demarcate the property in to 3 and let each of these demarcated property to 3 different individuals. Also you need to let them share common areas. 
But i am worried, if the agreement(demarcated, 3 rent agreements fall in to the hands of Chennai corporation then your property tax will be treated as commercial and you will be liable to pay enhanced property taxes. 
Also if electricity authorities come to know of existence of 3 rental agreements, they will ask you to install 3 different meters and pay electrical charges at commercial rates. 
in my view, it is not advisable to split a single tenancy in to 3 tenancies and invite permanent life long trouble in form of enhanced property taxes and electricity bills. 
sorry to give you a dissenting view, but my clients(relative also) have suffered because of such arrangements. 
Rajgopalan Sripathi
Advocate, Hyderabad
944 Answers
64 Consultations
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1) it would be legally valid if you enter into leave and licence agreement with 3 bachelors
Ajay Sethi
Advocate, Mumbai
26014 Answers
1415 Consultations
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Yes. it will be legally valid to enter in to a leave and license agreement with 3 bachelors. 
Rajgopalan Sripathi
Advocate, Hyderabad
944 Answers
64 Consultations
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Hi, As per law you can entered into tenancy agreement with 3 persons in the same agreement there is no issue at all and law provides for that.
Pradeep Bharathipura
Advocate, Bangalore
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You can induct any number of tenants by executing a lease deed. I have a property which has been leased out to 7 tenants. Get a flawless lease deed drafted from a lawyer. 
Ashish Davessar
Advocate, Jaipur
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484 Consultations
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Leave and license agreement is also valid. Any agreement binds both the parties once it has been executed.
Ashish Davessar
Advocate, Jaipur
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484 Consultations
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you can give a room to three persons as tenant. there is no rule that a room cannot be given on rent to more than one person. if one tenant cannot pay hefty rent it can be shared by more than one persons as tenant. 

If I enter into a leave and licence agreement with 3 bachelors, is it legally valid ?

yes, it is legally valid.
Shivendra Pratap Singh
Advocate, Lucknow
2969 Answers
45 Consultations
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1. Yes, the said agreement will be legally valid,

2. Here all the three tenants will collectively be termed as Parties of Part 2 while  the land lord will be treated as Part 1,

3. If possible and acceptable by the tenants, it will be legally prudent on your part to go for leave and license agreement  for 11 months.
Krishna Kishore Ganguly
Advocate, Kolkata
13167 Answers
280 Consultations
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1. You can very well enter in to a leave and license agreement with the said three bachelors terming all of them as Part 2 as advised in my earlier post,

2. If you execute leave and license agreement for 11 months, it is not required to be registered.
Krishna Kishore Ganguly
Advocate, Kolkata
13167 Answers
280 Consultations
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I wish to rent my apartment to 3 Bachelors on 11 months tenancy agreement. They want to have a multiparty tenant agreement (Land lord on one part with 3 tenants on one part), since their company HR insists on the same for income tax deductions. I am doubtful about the legal validity of such an agreement. Could you please help to confirm if such agreements are legally valid ?
If this is legally valid, then I need help to verify the draft tenancy agreement. Can I forward it to a lawyer for legal advice via email, since I am not residing in Chennai at present ?

There is no legal infirmity in letting out the premise to more than on person on rent by a single rental agreement. It can be let out.  It is legally valid and since it is just 11 months tenancy tenure, it may not be required to be registered as well. 
You can send the draft agreement to any lawyer of this forum to their maid id and can avail their services at a nominal cost as imposed by that lawyer for scrutinization and opinion. 
T Kalaiselvan
Advocate, Vellore
16397 Answers
153 Consultations
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Thanks for the answer. My residential society is in Chennai and has no problem, since the apartment complex have only 4 flats. Company is not willing to enter into leave and licence for use by employees. If I enter into a leave and licence agreement with 3 bachelors, is it legally valid ?

In Chennai no company will be ready to enter into the said leave and license agreement on behalf their employees, because accommodation to their employees is not the company's responsibility, however the occupants can enter a joint agreement in this regard on their own and this is valid in the eyes of law.
T Kalaiselvan
Advocate, Vellore
16397 Answers
153 Consultations
5.0 on 5.0

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