Legal Question in Wills and Trusts in India

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])

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

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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.

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.