What is the procedure to make lease deed

830 votes

Hi Sir We are planning to start a school from Nursery to X. We are exploring options to get the land for lease for a period of at least 30 years. Our concern here is, after we construct the buildings in the land, what is the legal strength of the lessor to cancel the lease and take back the land. How could we make the lease deed strong enough so that the Lessor would not create legal troubles for us. Please advise.

ANS: you have to get the lease deed registered before the sub registrar and you have to draft the lease deed in such a manner in the event of cancellation what is the compensation that has to be paid by the owner towards the cost ot the building that has been built by you

Advocate Girish Kodgi LawRato

706 votes

Dear Querist,
Remember if you are constructing the building on the land you will be owner of the building but not the land. The Lessor will always be owner of the land. You can have a lock in period say 10 years if that is long say 5 yrs. This lock in period is essentially bcoz you must have the time-period to know whether the business is running on a profit or loss. The Lessor will have the right to cancel the lease unless you committ breach of trust or there is non fulfilment of promises or obligations from either parties. Have a lock in period for 10 yrs with a option to renew every 5 yrs, further you should not commit breach of trust for u to have a strong lease deed. You can also think of liquidated damages if either parties wants the break the lock in period the other party is entitled to damages.
Regards,
Regards,
Pratap

Advocate Pratap Kumar LawRato