Naveen Kumar (service) 01 August 2012

Clarification regarding rent/lease deed

Hi Experts,

i have entered into an agreement with my land Owner. In the said Rent/Lease agreement in the License Fee/Lease Rent Clause it has mentioned that a "Total license fee/Lease Rent of Rs.15,000/- per month for first 5 years by way of an account payee cheque, but in the next column i.e., in ESCALATION clause it has mentioned that the Licensee fee/Lease Rent shall enhance by 10% on the last paid license fee after every 3 years from the date of commencement of this deed.

So my question is which clause should i consider either first one or second one and if am not pay the Escalation fee after 3 years what is the consequence. [since in first clause it has mentioned escalation for first 5 years.

Thanks in advance

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2 Replies

CA. Vikash Dwivedi (Chartered Accountant) 06 August 2012

these are conflicting clause. It may so happen the licensor/ lessor has used the same licence/ lease agreeement which he might have entered with someone for 3 yrs and forgot to delete the second escalation clause. you may bring this to the notice of the licnesor/ lessor.

where the provisions conflicting the clause or para appears later is considered.

Virun Jakka (Software Engg) 07 August 2012

Hi All,

I have entered into a sale for a running play school , which has both moveable and non-moveable assets , the owner of the school is the owner of the land as well.

I suggested to have one agreement for rent and other one for sale of school (Which should include all moveable and non-moveable assets of the school )

The problem is are there any other complainces left out w.r.t to school sale, or any cautions !

And what will be the right kind of sale aggrement deed to be made are there any formats of sale deed w.r.t school.

Please let me know, will be highly obliged.

Thanks

Virun