Lease tenancy and house rent agreements and its negotioation

Pranav Pandya, Franchise Development Manager, RE/MAX Gujarat

WHAT ARE LEASE, TENANCY AND HOUSE RENT

AGREEMENTS AND HOW TO NEGOTIATE THEM

RE/MAX Gujarat

Lease

Transfer of the right to use the property. For a specified period/for perpetuity Can’t evict the leaseholder while the

lease is in existence unless termination provision.

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What if a lease leads to a tenancy?

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Leave and License

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Advantage of leave and licence

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How to ensure an effective lease deed or leave and license agreement?

Find out who is the actual owner It is crucial that a leave or license or lease agreement is

signed only with the real owner of the house. It is more difficult to trace ownership of agricultural land If the person leasing the property is not the owner of the

land, find out if he has the authority to lease it.

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Renting out mortgaged property Term of the agreement

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Termination clause and notice period

Most property related disputes between landlord and occupant usually take place over termination and eviction.

long notice periods and lock in periods One month and three month notice period are

most common in India

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Important Clauses Lock in clause Sub-letting clause Payment clause Increase in rent clause Guarantor Clause Maintenance/association charges

clause

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Important Clauses Wear and tear clause Clause for furniture and fixtures Clause on associated facilities and

amenities Security deposit clause Repair works during occupancy

RE/MAX Gujarat

Important Clauses Wear and tear clause Clause for furniture and fixtures Clause on associated facilities and

amenities Security deposit clause Repair works during occupancy

RE/MAX Gujarat

Important Clauses Clause for tax liability Dispute resolution clause General nuisance clause General points of concern regarding

leasing or renting of any nature

Thank You