Lease for 5 years at once & possess property without paying rent


Hi Team, I'm in a talk with a flat owner to sign a lease of 5 years at once and lending him 43 lacs at the time of signing the contract. The deal is we will lend him 43 lacs and live in his flat for 5 years without paying any rent. He will return the principal amount (43 lacs) after 5 years of duration. My question is "Is it legal to lend someone money and take possession of his property for some time?" and if the answer is yes then what are the few important things I should include in the lease contract? Thank you in advance!


Answers (1)

Hi
Answer to your question is in negative. Lending money to owner qua possession of immovable property is not supported by any provision of law. But you can advanced the amount by way of deposit and can specifically mentioned in the lease deed that the owner of the house is entitled to take amount of interest by way of rent or premium and after efflux of period you are entitled for such deposit.


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