Rental arangenment
Devinder Singh
(Querist) 24 December 2011
This query is : Resolved
I have a case where a shop owner has given on rent to his son a shop in Delhi for a rent of Rs 45000.00 per month,the rental is not registered but a simple agreement on Rs 100 stamp. Now his son has found a party who is ready to pay a rent of Rs 80000.00 per month. the agreement has to be registered for 9 years. what the client wants is that as he has comitted a rent for Rs 45000.oo per month he does not mind letting his son have the extra Rs 35000.00 per month. How is the agreement to be made valid in law and the payment divided as above. The property is in the single name of the owner.Please advice the legality of the deal.
Thanks
Deepak Nair
(Expert) 24 December 2011
I can give you two suggestions.
1. Execute and register the lease agreement with the father and put a clause in the payment clause of the agreement that "The total monthly rent for the premises will be Rs.8000/- out of which the lessee shall pay Rs.40,000/- to the Lessor (father) and 35,000/- to Mr.X (son) vide two seperate cheques drawn on the lessor and Mr.X respectively". (you can change the language).
2. First execute an agreement to gove the premises on lease to the son, putting a clause for right to sub-lease and register the same. Then the son gets the right to sub-lease the premises to a third party.
Among the two options mentioned above, 1st is the simpler choice, since, in the second option, you will have to incur stamp duty for registration of lease deed.
prabhakar singh
(Expert) 25 December 2011
I am ready to buy only second suggestion of Mr. Deepak Nair.First shall create many fold hurdles from taxation to courts several doubts may come forward.Hence let father make a registered lease in favor of son with right to sub lease@Rs.45,000/=00p.m.rent then let son execute a registered sub lease in favor of interested third party @Rs.80,000/=00p.m.
Or
let a registered sub lease be created by the son in favor of third party stating in recitals that he is lessee of his father lessor @Rs.45,000/=00p.m.rent with a right to sublease hence creating the sub lease on my own to third interested party @Rs.80,000/=00p.m. rent for a period 09years fixed term and let this be singed as witness by father also,then only one lease would be sufficient.Cost can be saved this way.
Guest
(Expert) 26 December 2011
I endores the 2nd solution of Shri Deepak Nair to be quite appropriate.
Devajyoti Barman
(Expert) 28 December 2011
Yes I too endorse the views made above.
Devinder Singh
(Querist) 28 December 2011
Hello all,First of all I would like to thank you for the advice. The main worry is can the the main letee who sublets vacate the premise from the sublet or is it that the owner has the power to vacate as per the agreement conditions. Can this hamper the legal process for vacating. Is the triparty agreement as concrete as a single party agreement.
Kindly advice
Deepak Nair
(Expert) 10 January 2012
The owner has transfered his right to lessee through the lease deed. Thus, the lessee has the authority to sublease and to vacate sub-lesee.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 28 December 2011
