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mohit (system analyst)     15 April 2012

Things need to take care while giving shop on rent?

Hi Sir,

I have a shop in gurgaon. I wan to give it on rent. But i am doubtful too thinking if tenant does not vacate the property when i give him  the notice of months(whatever will be mentioned in papers). I have heard lot of cases where tenant does not vacate the shops. I am not sure what are the latest laws. i mean if i go for registered agreement and tenent does not vacate the shop what will happen? please guide me to dispel my doubts and what are th steps i need to follow to make sure tenant vacate the shop whenever i give him notice?



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 5 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com))     15 April 2012

Dear Mr.Mohit,

It's always preferable to execute a 'leave and license' agreement as regards your property than a 'lease deed'. A registered leave and license agreement gives far less rights to the person/licensee than a lease deed, and hence makes recovery of property a lot more easier. To tell you the basics - a licensee is a person who gets the right to use the property permissively for a particular purpose - which would have been illegal had it not been for your permission. On the contrary in a lease you vest a lot many rights on your tenant exclusive possession etc. Termination of License is also easier. 

A meticulously worded leave and license should do be enough !

Feel free to talk!

mohit (system analyst)     16 April 2012

Thanks Mr Bharat for valuable advice. Two more questions:- If tenant does not leave the shop even after leave and license agreement,  what should be the proceedings. Can we directly go to police to get the shop vacated or filing the lawsuit is the right step? As you told leave and license agreement is much more stronger from landlord perspective, my question is then still why most of the landlord go for sale deed? Does  leave and license involve lost of hassles or is it costly?

mohit (system analyst)     16 April 2012

Another point is there any difference from income tax point of view?Thanks in advance.


(Guest)

Sir, Is there any risk in giving shop on rent with leave & license basis with legal registry in sub-registrar office, pl. reply.


(Guest)

can u pl. tell, what is the other legal & safe procedure to give a shop on rent. 


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