Renewal clause in rent deed
Mayank
(Querist) 16 August 2014
This query is : Resolved
Hello. I am doing a rent deed with a party where I am the lessor. The lessee has put the following clause which I doubt may give lessee to renew the deed at their own will.
Please see if it is safe to agree with this clause.
The clauses are:
"3.The Monthly Lease rental shall increase by 5 % at the end of every year of the last paid amounts and as mentioned in the schedule. However there shall not be any corresponding increase in the Deposit amount. The date of commencement and expiration of the Lease shall be as per the schedule. Renewal of the said Lease Agreement would be at the exclusive option of the Lessee. However, there will not be any increase in the security deposit during the entire tenure of the Agreement."
and
"6.Renewals:The Lease shall be for a period/term as mentioned in the Schedule. The Lessee may express its sole intention for extension/renewal of the Lease and shall execute by issuing a written notice to the Lessor three months prior to the expiry of the Lease. In the event of the Lease term being extended/ renewed, the same shall be evidenced by a fresh Lease agreement containing terms mutually decided and agreed by the parties. "
ajay sethi
(Expert) 16 August 2014
you are absolutely correct . you should mention that renewal of lease agreement shall be done with mutual consent of lessor and lessee .
Rajendra K Goyal
(Expert) 16 August 2014
The language need to be changed, get assistance of your lawyer to scrutinize whole document.
Raj Kumar Makkad
(Expert) 16 August 2014
The terms are self-explanatory. Neither of the terms can be alleged as illegal, however, it depends upon you to accept or not. If the lessee is ready to negotiate and accept your terms also, do and move ahead.
ADV-JEEVAN PATIL, MUMBAI
(Expert) 16 August 2014
Lease ageement exten n its Clauses r always mutualy agreed n not at option at either.hence u r right to do so.
T. Kalaiselvan, Advocate
(Expert) 22 August 2014
