Premises given on Rent

It is for your client to decide, on what basis he intends to let the premises.

DRAFT RENTAL AGREEMENT

 

This RENTAL AGREEMENT executed at Chennai on this the____day of ________ 2009 Between

 

Mr. ________________________ S/o Mr. ________________ residing at No. ______________ herein after called  the "LANDLORD") which expression shall unless it be repugnant to the context of meaning thereof mean & include her/his heirs, executor, legal representatives, administrator & assigns of the ONE PART

AND

 

Mr. ___________________ S/o. Mr. __________________ hereinafter called the “TENANT " which expression shall unless it be repugnant to the context of meaning thereof mean & include her/his heirs, executor, legal representatives, administrator & assigns of the OTHER PART.

 

WHEREAS:

  

A.   The LANDLORD is the lawful owner of, and otherwise well sufficiently entitled to a self contained House measuring ____Sq. at ________________more clearly described in the Schedule hereunder and hereinafter referred to as the ‘SCHEDULE PROPERTY ’;

 

 

B.   TENANT being in need of an accommodation approached the Landlord with a request to permit the Tenant to occupy the SCHEDULE PROPERTY on lease for a temporary period and for purposes of residential use.

 

C.  The parties are hence desirous of reducing into writing the mutually agreed terms and conditions of this Rental Agreement.

 

 

NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS UNDER:

 

 

1.         That the LANDLORD has agreed to grant on Rent and the TENANT has agreed to take the SCHEDULE PROPERTY for period of 11 months commencing from ________. The period of the lease shall be for eleven months with the option to TENANT to renew for FOUR TIMES for the same period, with the mutual consent of both the parties at such terms and conditions as may be mutually agreed upon between the parties.

 

2.         The Tenant shall pay a monthly rent of Rs. ______/- (Rupees _____________) as consideration for use and occupation of the SCHEDULE PROPERTY, to the Landlord, by the 10^th of every month.

 

3.         That in addition to the compensation mentioned above, the TENANT shall pay the actual electricity bills for the purpose security lights and water electric charges for the period of the agreement directly to the authorities concerned.

           

4.         The TENANT  will  pay  an  amount   of  Rs. _____________/- (__________________) towards   interest  free  Security  Deposit  to  the  LANDLORD .  This   said  amount  will  be  adjusted  or refunded  at  the  time  of  surrendering of  the tenancy against  simultaneously  delivery  of  possession  of  the  said  tenanted  portion. This deposit is for the due performance and observance of the terms and conditions of this Agreement. In the event of failure on the part of the LANDLORD to refund the said deposit amount to the TENANT as aforesaid, the TENANT shall be entitled to continue to use and occupy the SCHEDULE PROPERTY without payment of any rent until the LANDLORD refunds the said amount with interest @ 15 % p.a. from the date the TENANT offered to vacate the SCHEDULE PROPERTY till the date of refund of the deposit to the TENANT (without prejudice to the Tenant’s rights and remedies in law to recover the deposit).

 

 

5.      The LANDLORD shall, before handing over the SCHEDULE PROPERTY, ensure the working of sanitary, electrical and water supply connections and other fittings pertaining to the SCHEDULE PROPERTY. It is agreed that it shall be the responsibility of the LANDLORD for their return in the working condition at the time of re-possession of the SCHEDULE PROPERTY (reasonable wear and tear and loss or damage by fire, flood, rains, accident, irresistible force or act of God excepted). The TENANT shall pay the actual electricity bills as per the meter reading for the purpose security lights and water electric charges for the period of the agreement directly to the authorities concerned.

 

6.      The  LANDLORD shall be responsible for the payment of all taxes and levies pertaining to the SCHEDULE PROPERTY  including but not limited to House Tax, Property Tax, other cesses, if any, and any other statutory taxes, levied by the Chennai Corporation) and other Government Departments. During the term of this Agreement, the LANDLORD shall comply with all rules, regulations and requirements of any statutory authority, the Chennai Corporation and other Government Departments, and any local, State or Central Governmental authority in relation to the SCHEDULE PROPERTY.

 

7.      The   TENANT  will  install  the  Telephone ,  Air  Condition  Machine , at  their  own  cost  and   expenses  and  the  LANDLORD give  all  co-operation, if  required  for  the same.

 

8.      The  TENANT is  entitled  to make  interior  decoration  by  making cubical, blanket  partition  without  obstruction  and  disturbance  of the  main  wall  of  the  Building  and  Structural  alteration  and/or  stability.

 

9.      The  TENANT will  use  the  said  tenant portion for residential use only  but  they  will  not  obstruct  or  cause  any  hindrance  or create any  nuisance  or  immoral  activities  in  the  said  Tenant   portion  of  the building . 

 

10.  The   TENANT is  not  entitled  to  sublet , transfer or assign  the whole or  any portion of  the accommodation  let  out  to  the  TENANT. The TENANT shall not also induct   in any   Licensee    or paying Guest.

 

11.  The  TENANT shall  agree  that  the  tenanted  portion will  be  open  for  inspection  by  the LANDLORD without hindrance  at   all  reasonable  time  and  at  all  reasonable  intervals.

 

12.  That the day to day repair jobs such as fuse blow out, replacement of light bulbs/tubes, leakage of water taps, maintenance of the water pump and other minor repairs, etc., shall be effected by the TENANT at its own cost, and any major repairs, either structural or to the electrical or water connection, plumbing leaks, water seepage shall be attended to by the LANDLORD. In the event of the LANDLORD failing to carry out the repairs on receiving notice from the TENANT, the TENANT shall undertake the necessary repairs and the LANDLORD will be liable to immediately reimburse costs incurred by the TENANT. Before undertaking such repairs and replacement the TENANT shall obtain necessary written   permission from the LANDLORD.

 

13.  The TENANT shall use one two wheeler parking and one covered car parking. 

 

14.  The LANDLORD shall have the right to terminate this Rental Agreement at any time before the expiry of such period, by giving 30 days notice in writing and likewise the TENANT shall also have the right to terminate the lease before the expiry of the said period, by giving 30 days notice in writing.

 

15.  The LANDLORD shall allow the TENANT to enjoy quiet and peaceful possession of the said premises during the entire period of the Rental without any interruption by the LANDLORD or any person or persons claiming either through or under or in trust for the LANDLORD or other wise.

 

16.  All notices required to be given under this Agreement should be given to the party in English language by depositing the same in regular mail with postage, prepaid or by courier, fax directed to the parties at the address mentioned above or such other address may be supplied in writing by the party from time to time.

 

17.  The Courts at ________shall have jurisdiction in respect of the subject matter of this Rental Agreement.

 

SCHEDULE OF PROPERTY

 

 

All that piece and parcel of the Property bearing No. ___________ situated within the jurisdiction of sub registrar office __________.

 

NORTH BY
SOUTH BY
EAST BY
WEST BY

 

IN WITNESS WHEREOF the parties hereto have set and subscribed their respective hands and seals the day, month and year first above written.

 

 

LANDLORD

 

 

TENANT

Witness:

 

1.

 

2.

and it has to be registered

 

                                             LEASE DEED

 

THIS INDENTURE of Lease deed made at ……………, on this day……….of…... 2009

                                                    

 BETWEEN

 

……………………………………………………………, a company incorporated under the Companies Act, 1956, having its Registered Office at ……………………………………………………………………,represented herein by its Authorised Signatory, ……………………………………………………. (Hereinafter referred to as the ‘LESSOR’, which expression shall unless it be repugnant to the context or meaning thereof be deemed to mean and include its successor/ and assign/s) of the ONE PART

And

…………………………………………………………., a company incorporated under the Companies Act, 1956, having its registered Office at ………………………….., represented herein by its Authorised Signatory, Mr…………………………… (Hereinafter referred to as the ‘LESSEE’, which expression shall unless it be repugnant to the context or meaning thereof be deemed to mean and include its successor/s and assign/s) of the OTHER PART.

 

(The LESSOR and the LESSEE and hereinafter individually referred to as the `Party’ and collectively referred to as “the Parties”)

 

WHEREAS the LESSOR is the owner of ………………………………………… (hereinafter referred to as ‘the premises’) and is well seized and possessed of the premises and is legally competent to let out the same free from all third party encumbrances and is entitled to realize the rent thereof and to assure peaceful, un-interrupted enjoyment and possession of the Premises to the LESSEE, as herein provided.

 

FURTHER WHEREAS for the purpose to operate …………………………………….. requires the premises and in these circumstances, the LESSEE approached the LESSOR with a request for grant of lease for the said premises and the LESSOR has agreed to demise unto the LESSEE the said premises on the following conditions mutually agreed to between the parties.

 

NOW THIS INDENTURE WITNESSETH AND IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

 

1)     The LESSOR doth hereby demise unto the LESSEE all that the said premises at ……………………………………………………… to hold the same unto the LESSEE for a period of ………………years only commencing from ……………… upto and inclusive of ……………….. (hereinafter referred to as the ‘Lease Period’).

2)     That the lease is being executed at a monthly rent of Rs………………./-.The first of such monthly rent shall commence from the……………………..and the subsequent monthly rent shall be paid on or before the 10^th day of each succeeding month after the payment of such first monthly rent respectively. However it is agreed between the parties that rent escalation will be ………% annually on the last paid rent.

 

3)     The lease shall be valid for a maximum period of …………… years.

 

4)     That as stated hereinbefore, the said premises belong to………………….., the LESSOR defined hereinabove. Accordingly, the monthly rent payable for the said premises shall be paid by the LESSEE by a cheque/demand draft payable at …………………………drawn in favour of ………………………………

 

5)     That the LESSEE before taking possession of the said premises shall deposit with the LESSOR, refundable security amounting to Rs…………….. which amount is equivalent to rent of first three months of the lease period.

 

6)     That the LESSEE shall use the said premises for carrying his business of ……………………………………. and other allied activities including activities ancillary and incidental thereto only and shall not carry on any other commercial activity or business. The Lessee shall not carry on and/or cause to carry on any such activity which is illegal or immoral and/or is against the permissible user of the premises.

 

7)     It is agreed by and between the Parties hereto that in respect of the said premises the LESSOR shall pay all the taxes, levies and other outgoings such as Ground Rent/House Tax/Municipal Tax/Property Tax etc. assessed or payable in respect of the said premises during the continuance of this lease, whatsoever lawfully payable for the said premises as leviable from time to time, including any revisions thereto, directly to the authorities concerned. However, the LESSEE shall be liable to pay the service tax and all other outgoings such as electricity charges, water charges and telephone/fax charges in respect of the said premises as per actual bill(s) of consumption directly to the agencies/authorities providing such services and will keep the LESSOR informed for the same.

 

8)     The LESSOR has obtained the requisite consents, permissions, NOC’s and approvals, if any applicable from the concerned local authorities for grant of the Lease herein to the Lessee of the Leased Premises together with use and enjoyment of the additional amenities/spaces/areas and the other rights and facilities granted herein to the Lessee.

9)     The LESSOR represents and warrants that he is fully empowered, authorized and able to make this Lease and that there is no mortgage, charge or other encumbrances of any nature in respect of the Leased Premises and that he will hold the Lessee harmless from any proceedings by others in respect of the quiet and peaceful possession of the premises .

 

10)  Both the parties hereto shall keep each other indemnified and harmless in respect of any liability arising on the either party as a result of any act of negligence on the other party or its employees or its authorized agents.

 

11)  The LESSOR undertakes to perform his obligations hereunder fully and to comply with the requirements of municipal or other authorities and guarantee peaceful occupation of the premises to the LESSEE, discharging its obligations hereunder.

 

12) The LESSEE shall keep the said premises in good and tenantable condition and, if required, make repairs in the same way as the LESSOR is liable to do under the law and shall permit the LESSOR or any authorized person or persons deputed by the LESSOR during the lease period at all reasonable hours, if the LESSOR desires so to do, to enter upon the said premises for viewing the state and condition thereof;

 

13) THAT the LESSEE shall not be entitled to sub-let, assign or part with the possession of the said premises in part or in full to any third party.  However, subject to the prior approval of the LESSOR, the LESSEE will be entitled to allow use of the premises to its sister concerns in which the LESSEE or its Directors are interested, on such terms, as the LESSEE may deem expedient including user charges.  However, the responsibility for performing the obligations under this Lease vis-à-vis the LESSOR shall vest with the LESSEE.

 

14)  In the event that, at any point of time the rent hereby reserved in respect of the said premises remains in arrears for a period of one month, the  LESSOR shall, after having given a notice in writing to the LESSEE for remedying the said breach within a period of 30 (thirty) days from the date of such notice, and in case where the said breach is not remedied by the LESSEE in terms of such notice, then, upon the expiry of 7 (seven) days after the expiry of the said 30 (thirty) days  notice period, be entitled to re-enter upon the  said premises and thereupon all rights of the LESSEE hereunder shall stand terminated, however, without prejudice to the right of action of LESSOR in respect of any breach of the terms and  conditions, herein contained, by the LESSEE.

 

15) On expiry of Lease period or on early termination of lease, the LESSOR shall after deducting the arrears of rent, if any, refund to the LESSEE the full Security Deposit amount at the time of termination/vacation of the Demised Premises. In the event the LESSOR does not refund such Security Deposit, LESSOR shall pay to LESSEE an interest @ 8 % p.a for the period of delay.

 

16) The LESSEE shall upon the expiry of the lease period or early termination as provided in Clause 10 hereinabove, deliver the vacant possession of the said premises to the LESSOR in good order and in the same layout as far as possible, reasonable wear and tear thereof, force majeure and unforeseen calamities excepted. The LESSEE shall ensure that all sanitary, electrical and other fittings and fixtures, which are installed in the said premises, are in full working order and nothing is non-functional, broken or missing.

17) The LESSEE shall not to hold the LESSOR responsible or liable for any loss or damage suffered by the LESSEE or its employees, servants, agents, its visitors on account of any theft, fire or other accident caused to the said premises or any part thereof save and except the loss or damage caused due to the negligence of the LESSOR or their agents, servants and contractors.

 

18) The LESSEE shall not to bring or store in the said premises any combustible or inflammable materials or any dangerous things as may imperil the safety of the said building or as may increase the premium of insurance of the said building or render void the insurance in respect thereof.

 

19) It is agreed between the parties hereto that since the Lessee shall be making investments in decorating the Leased Premises and installing fixtures, fittings, appliances , etc.therein,24 (Twenty Four) months of the Lease Period shall be regarded as a Lock-In-Period and that no party hereto shall be entitled to terminate this Lease during the said Lock in Period .

 

20) That the minor repairs such as mending fuses, leakages of water tanks, breakage of glass panes, clearing the drain pipes and repairs of fans, doors, windows, locks etc. shall be done by the LESSEE at its own cost but all major repairs including bursting of sanitary and water pipes, tanks, structural repairs etc., if required, shall be carried out by the LESSOR at its own cost.

 

21) The LESSEE shall not to use the said premises for any purpose prohibited by the administration and/or the concerned Development Authority/other governmental or quasi-government agencies.

 

22) Notwithstanding if at any time during the subsistence of the Lease the Premises are damaged, destroyed by fire, storm, flood, tempest, earthquake, enemies, war, riot, civil commotion or any other irresistible force or by act of God so as to make the Premises unfit for use or occupation, then in that event this Lease may be terminated at the option of the LESSEE and the LESSEE shall have the right to get the above mentioned security refunded.

 

 

23) The LESSOR has provided adequate water arrangement and an electric load of ….. KVA for use in the said premises at its own cost. Further, in case the LESSEE requires any extra electric/power load, it shall be subject to written permission by the LESSOR provided that the LESSEE shall obtain such augmented electric/power load/voltage supply from the authorities concerned in respect thereof, at the cost of the LESSEE and the LESSOR shall co-operate with the LESSEE and sign and execute all such applications, forms and other documents for the same as required by the LESSEE. The security deposit for obtaining addition electric/power load, if any, shall be paid by the LESSEE to the authorities concerned. At the time of vacation of the said premises, in case the LESSOR wishes to retain the additional electric/power load, the LESSOR will refund to the LESSEE, at the time of handing over of the possession of the said premises, the amount of security deposit paid by the LESSEE to the authorities concerned at the time of obtaining the enhanced electric/power load. However, in case the LESSOR does not wish to retain the additional electric/power load, the LESSOR will refund to the LESSEE, the amount of security deposit paid by the LESSEE to the authorities concerned at the time of obtaining the enhanced electric/power load, immediately on receipt of the said security deposit by the LESSOR from the authorities concerned.

 

24) That during the lease period, the LESSEE shall be entitled to make internal additions or alterations, including attaching fixtures, fittings or signs of…………………………….. in or upon the  Premises as permissible under law, except structural changes to the Premises, at the cost and expenses of LESSEE.

 

25) The LESSEE shall have the right to display its name, address and to put up any name-plate or sign board, publicity or advertisement material on the external facade of the Premises and / or anywhere in the common areas as permissible under law and/or allowed by the competent authority/administration and/or by LESSOR.

 

26) LESSOR shall retain the original of the Lease Deed and LESSEE shall retain the duplicate copy thereof.

 

27) That failure of LESSOR to enforce at any time or for any period of time the provision hereof shall not be construed to be waiver of any provisions or of the right thereafter to enforce each and every provision.

 

28) That if any provision of this Lease shall be held / determined to be void or unenforceable under applicable law such provision shall be deemed amended or deleted in so far as is inconsistent with the law and the Lease shall remain valid and enforceable subject to such deemed amendments / deletions.

 

29) That this Lease Deed constitutes the entire Agreement between the parties, and it revokes and supersedes all previous discussions / correspondence, Memorandum of Understanding, agreements between the parties, if any concerning the demised premises whether written, oral or implied. This Lease Deed shall not be changed or modified except by written amendment mutually agreed by the parties.

 

30) That the LESSOR specifically agrees and undertakes that in the event the said premises are sold, transferred, mortgaged or conveyed to any third party by the LESSOR or where any third party interest is created in the Premises by the LESSOR, either individually or jointly during the term of the Lease under this agreement, then the LESSOR shall stipulate with such third party, purchasers or transferee or whatsoever that such transfer will be fully subject to the terms of this Lease agreement and the LESSEE will continue to be in possession of the Premises on the same terms and conditions as are contained in this Lease Agreement.  The LESSOR further agrees to ensure that the agreement executed by the LESSOR individually or jointly creating or transferring any interest or right in the Demised Premises in favour of the third party carries a covenant by such third party to acknowledge the LESSEE as his own LESSEE on the same terms and conditions as are contained in this Lease Agreement.

 

31) That LESSEE and LESSOR shall abide by the Laws of the land and any local enactments in respect of the Lease and the premises. Penalties, if any, levied by the Government, State, Municipal Body etc. will be borne by LESSOR in respect of the Premises.

 

32) The parties agrees that in case of breach of any of the terms by the LESSEE, the LESSOR shall have the right to call upon the LESSEE to remedy the breach within thirty days of the notice in writing, specifying the breach made by the LESSEE and in case of the LESSEE fails, neglects or refuses to remedy the breach within said thirty days then the LESSOR may terminate the lease by giving one month notice to the LESSEE.

33) THAT the LESSEE may terminate this lease prior to the expiry of the term hereof by giving one month notice to the LESSOR.  On earlier termination of lease by the LESSEE, the security deposit would be adjusted by the LESSOR against the rent for the premises for the notice period i.e three months.

34) This Lease Deed shall be executed in duplicate and registered in accordance with the applicable laws. Any stamp duty and registration charges in this regard shall be borne equally by the LESSEE and the LESSOR.

 

35) All notices or other communications under or in connection with this Agreement shall be given in writing by letter and/or facsimile at the addresses stated herein below. Any such notice and/or other communication will be deemed to be effective:

 

(i)      if sent by letter, when delivered personally or if dispatched by registered post at the address mentioned herein;

(ii)     if sent by facsimile, on receipt of a confirmation to the correct facsimile number.

Addresses:

(i)      In case of LESSEE:

                             ………………………………………………………………………………….

(ii)             In case the LESSOR:

                   …………………………………………………………………………………

32)     Any dispute, controversy or claims, questions, arising out of or relating to this Agreement including the meaning, effect, scope, construction and/or interpretation of any of its clauses or any breach, termination or invalidity thereof, shall be settled in accordance with the Arbitration and Conciliation Act, 1996 and/or any amendment, modification and/or re-enactment thereof. The place of arbitration shall be……………………………. and any award made whether interim or final, shall be deemed for all purposes between the Parties to be made, in ……………………………………………..

                                                   

                                               

 

                                           SCHEDULE

 

THE SCHEDULE ABOVE REFERRED TO DESCRIPTION OF THE LEASED PREMISES:-

All the inter connected and self contained ……………………………………………………. and bounded as follows, that is to say:-

On or Towards the North:                 By

On or Towards the South:                 By

On or Towards the East:                   By

On or Towards the West:                  By

 

IN WITNESS WHEREOF the LESSOR and the LESSEE have set their respective hands to these presents and a duplicate thereof and the LESSOR and the LESSEE have caused the same to be executed, on the day, month and year first hereinabove written.

 

Signed and delivered by the withinnamed LESSOR

By the hand of………………………………………………….

, its authorized signatory.

In the presence of …………………………………………

         

Signed and delivered by the withinnamed LESSEE 

By the hand of ……………………………………………..

 Its authorized signatory.

In the presence of………………………………………….

 

Dear Niraj,

It is always safer for the Landlord to go for a Leave and Licence agreement. Take care so that later the tenant does not claim it is a Lease, so draft the clauses carefully. Also put in stringent clauses that if he does not vacate , the Security deposit shall be forfeited, and he shall pay damages at a very high rate which will go on increasing goemetrically year after year.

Also do not put in any renewal clause in the deed, and further that no alteration, modification etc shall be accepted until it is in written, and no type of any future agreements or contracts can be spoken, only  written.

The Landlord can tell the tenant that if the relations are conduicive, then a freah agreement shall be entered.

Make the Licence agreement for 11 months only, since anything 12 months or more has to be registered. See that there is no clause to show exclusive possession. Verify a railway kiosk license for better details.

Remember all laws in India are in favour of the tenant and inspite of having a good agreement, it will take years to evict a tenant. The tenant has every thing to gain by fighting till the Supreme Court and we are very weak in awarding damages and compensation.

Kanhayalal Sharma,

Cuttack.

maruvihag@rediffmail.com

IF IT IS IN MAHARASHTRA, EXECUTE LEAVE LICNSE AGR FOR 3 YRS AND GET IT REGISTERED WHERE THE PRMISES SITUATE. U HAVE TO PAY STMAP DUTY IT CAN BE BORNE AS HAALF COSTS AND EXPENSES BY PARTIES.