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I wish to rent out my plot to any company for 5 years,what should i do
10-Mar-2023 (In Property Law)
We wanted to rent out empty plot in mumbai for corporate company for 5 years , can we go for leave & license OR lease agreement ..? what could be safe as property owner ..??
Dear client,
1) A Lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement.
2) License is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee's part. It merely gives the licensee the right to use and occupy the premises for a limited duration.
3) A lease deed needs to be stamped and registered. The amount payable towards the lease deed's stamp duty is more than that payable towards the Leave and License's. For a period exceeding three years, the stamp duty is same for both agreements.
4) Usually when the premise has to be given for use for a longer duration lease would be the usual practice. In either case if the lessee or the tenant refuses to vacate there are stipulations in the agreement that you enter into to evict.
5) Therefore you may either enter into a leave and license Agreement or Lease Agreement. You need to make sure that the draft is duly vetted by a good lawyer and your interests are protected.
6) So your leave and license agreement or lease deed document's drafting is v.imp.factor to protect your rights and interest. Even though company's lawyer/s are drafting your agreement take it vetted from your end advocate to protect you.
ALL THE BEST!
1) A Lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement.
2) License is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee's part. It merely gives the licensee the right to use and occupy the premises for a limited duration.
3) A lease deed needs to be stamped and registered. The amount payable towards the lease deed's stamp duty is more than that payable towards the Leave and License's. For a period exceeding three years, the stamp duty is same for both agreements.
4) Usually when the premise has to be given for use for a longer duration lease would be the usual practice. In either case if the lessee or the tenant refuses to vacate there are stipulations in the agreement that you enter into to evict.
5) Therefore you may either enter into a leave and license Agreement or Lease Agreement. You need to make sure that the draft is duly vetted by a good lawyer and your interests are protected.
6) So your leave and license agreement or lease deed document's drafting is v.imp.factor to protect your rights and interest. Even though company's lawyer/s are drafting your agreement take it vetted from your end advocate to protect you.
ALL THE BEST!
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Adv. Seema Vithal Mangaonkar
Mumbai | 25+ Answers
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