Legal Question in Wills and Trusts in India

Meother are taking a house on rent,there are a few clauses that the owner has discussed and i want to verify if they are legally valid.

1) It will be based on a 11 month lease basis however,he has mentioned after my mother insisted that he will put in the line that his family will ot ask us to vacate the house atleast for 3-5years as we are accomodating the place on a long term basis.

2) The rent has been fixed on Rs 22,ooo pm. However,he says that there will be a clause stating a hike of 5% every year.(That is where we are abit confused hence,please clarify.)

3)Initially he had said that when any of the party wanted to vacate a notice of 3 months,but after a discussion with my mother they have mutually decided for the time to be 6 months.

Hence,i wanted to take a legal advice before going on with the agreement.

Thanks in advance.


Asked on 1/15/13, 7:39 am

5 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

15.01.2013

Dear Sir / Madam,

I can tell you the standard practice prevalent in Maharashtra to address each of your concerns:

1) It can either be a 11 month renewable lease Agreement for Leave and Licence (ALL) where stamp duty is applicable but registration is optional, or it can be a long term lease of 3-5 years wherein both stamp duty & registration is compulsory.

2) The lease charges are fixed at Rs. 22,000/- per month for the initial 11 months with a clause to increase the rent by 5% to Rs. 23,100/- per month for the first renewal from the 12th month to the 23rd month, Rs. 24,255/- for the second renewal from the 24th month to the 35th month, and so on and so forth. For the 3-5 year lease, the rent increase is annually i.e after every 12 months.

3) It is here that you need to be careful. When you increase the notice period from 3 months to 6 months, you are increasing your burden & liability to a longer period, in the event you desire to vacate the premises before the expiry of the ALL. For example, if you give the landlord only 3 months notice, having committed to a notice period of 6 months in the Agreement, you will have to forfeit the 3 months notice period lease charges, which the landlord will conveniently recover from the deposit or advance rentals, whatever be the nature of your ALL. It lies in your interest to keep the notice period to a minimum to minimize the risk.

Regards,

FCA Prashant Chavan

Mumbai

(You can also mail me for any further on-line advice at [email protected])

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Answered on 1/15/13, 8:52 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

i don't see any illegality in the clauses. you can proceed.

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Answered on 1/15/13, 11:55 pm
Sanjay Kalra Sanjay Kalra & Associates

I still feel you need a competent lawyer to draft the lease agreement for you........Please check Sanjay Kalra and Associates on the internet to know more about our law firm and the legal services we are rendering for our clients from all over the World.

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Answered on 1/24/13, 2:58 am
Sanjay Kalra Sanjay Kalra & Associates

Answered .......Please check Sanjay Kalra and Associates on the internet to know more about our law firm and the legal services we are rendering for our clients from all over the World.

Read more
Answered on 1/24/13, 2:59 am
Sanjay Kalra Sanjay Kalra & Associates

Replied......Please check Sanjay Kalra and Associates on the internet to know more about our law firm and the legal services we are rendering for our clients from all over the World.

Read more
Answered on 1/24/13, 2:59 am


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