25 November 2011
Lease agreement is executed by two competent parties - lessor on one part and the lessee on other part. Question is -
(1)Who should initiate the lease agreement - the lessor or the lessee? And who should bear the expenses like stamp fee, drafting fee, registration fee, etc.?
(2)If neither the lessor nor the lessee initiated for any written lease agreement, but the lessor is allowing the lessee to use the building on verbal agreement at a fixed monthly rent, what would be the future consequences?
(3)In case of non-execution of lease agreement by the parties, who stands in advantageous or disadvantageous position - the lessor or the lessee?
25 November 2011
1. the tenant should bear the stamp duty and registration fee )Refer Indian Stamp Act) 2. the tenanet my in future dispute rent or even claim other right over the property. 3. the lessor stands to loose, the lessor will be in disadvantageous position
26 November 2011
The answer to first question has been rightly given that in the absence of any agreement the tenant shall pay the expenses.
the consequences of an unregistered and unwritten lease shall be that the lease shall be considered from month to month.
As far as advantage for the parties in case of an unwritten agreement, it will depend upon the dispute. The lessor has advantage in getting the possession back, since the lease will be considered monthly. The lessee may get advantage if there is a dispute over quantum of rent, payment of maintenance, electricity and water charges etc. .
the advice to lessor in the case would be to take rent by way of cheque and issue a receipt of the payment with countersigned by the lessee.