Talapaneni Manogna 09 June 2025

Registered lease agreement cancellation

In 2016, six owners of residential flats entered into a lease agreement for a government office. The lease explicitly states a duration of only two years. However, they extended the lease for an additional three years through mutual verbal agreement, fulfilling all rental obligations before vacating the premises. My father was among these owners. He passed away in 2017. I have inherited that specific residential flat through a gift registration process conducted by me,my brother and mother. Currently, I am in the process of selling my property, and the prospective buyer has requested the cancellation of the lease agreement through the sub-registrar, ( as he applied for a SBI house loan, and the legal department clearly stated that they cannot process a loan of there's a lease agreement) as it is reflected in the encumbrance certificate (EC) records. Is it possible to cancel the lease for just one property? Must both my brother and mother be present for the lease cancellation? If so, considering my brother resides in the United States, what would the procedure entail in this situation? Additionally, I have no means of communication with one of the other five owners of the leased property; what steps can be taken if all owners' consent is necessary?

Reply Follow

7 Replies

Dr. J C Vashista (Advocate ) 10 June 2025

Lease and encumbrance are two different subjects which cannot be clubbed togather.

When lessee (government in instant case) has vacated the flat, what is your dispute ?,

You have stated to have been gifted the flat to you, you are sole and absolute titleholder (owner) accordingly you can dispose it of as you desire, there is no legal impediment.

However, various issues have been clubbed in your post, it is advisable to show relevant documents to a local prudent lawyer for better appreciation of facts and proper guidance.

1 Like

R.K Nanda (Advocate) 10 June 2025

Question too long to reply on free legal site.

1 Like

T. Kalaiselvan, Advocate (Advocate) 10 June 2025

The Bank will certainly insist on removal of encumbrance created during execution of registered lease agreement.

Now you to approach the government authorities to co-operate for cancellation of lease agreement along with other owners.

In the given situation it would be a very lengthy process which you may not be able to get it done if there's no cooperation from other owners hence you better change the buyer.

1 Like

Talapaneni Manogna 10 June 2025

The director of the government office is co-operating for cancellation.

Cannot change the buyer now as we already did an agreement and received some advance. Buyer is willing to wait for sometime.

Only problem is one of the owner has died and his sister stays in America, not able to get proper communication from them.

Can I know if general power of attorney works for lease cancellation deed?

T. Kalaiselvan, Advocate (Advocate) 10 June 2025

The legal heirs of the deceased owner can very well authorise any person to represent them by executing a power of attorney deed to perform the tasks in this regard.

The POA deed executed in a foreign country may be attested by an official of the Indian consulate of the country where they reside to establish the authenticity of the deed.

Dr. J C Vashista (Advocate ) 11 June 2025

First of all the LRs of deceased titleholder (Owner) shall have to obtain LR Certifate/ Surviving Member Certificate from area SDM/ Tehsildar before proceeding further in finalisation of deal and execution of document of Sale.

P. Venu (Advocate) 12 June 2025

Admittedly, property has been duly gifted to you and you are its absolute owner. Thes lease had been for a specific period and the lessee has duly vacated the premises. As such, it cannot be said that the encumbrance subsists. If the eralier entry continue to be in the records you may take steps to have it removed.

By the way, what exactly, is the ncumbrance recorded?