Saturday 31 January 2015

RENTAL AGREEMENTS

Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore

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It would not be straightforward to unleash the property and be happy from legal proceeding unless there exists a properly written rental agreement. Therefore, it's higher to understand the salient options of the rental agreements before any property is unleash.


Rental agreements within the legal word are referred to as Lease Agreements. The one who transfers the property is named the 'Lessor', and also the one who accepts the transfer of property is named the 'Lessee'.

According to section one hundred and five of the Transfer of Property Act, 1882, a lease of unmovable property may be a transfer of the correct to relish such property, created for an exact time, specific or silent, or in sempiternity, in thought of the value paid or secure, or of cash, a share of crops, service or the other factor valuable, to be rendered sporadically or on specific occasions to the transferrer by the transferee, who accepts the transfer on such terms. In short, a lease may be a transfer of a right to relish the property of the lesssor by the tenant for sure time, throughout that amount the tenant is place in possession of the property upon payment of lease cash or rent.

Elements of an honest lease
The essential components of a lease are (1) parties, (2) material, (3) terms of lease (4) thought or rent and (5) length of lease. A lease dealing involves commitment by each property owner and also the tenant that are complimentary to every different - the owner agreeing to unleash his property to the tenant in thought of the latter paying him the rent and also the tenant agreeing to pay to landlord the rent in thought of the owner permitting him to use the chartered premises. A lease is that sort of encumbrance that consists of a right to possession and use of property in hand by another person. It’s the result of separation of possession and possession.

A occupancy is made not solely by an specific contract however conjointly by implication by the conduct of parties. Acceptance of rent by the owner clearly establishes existence of occupancy. A lease of unmovable property could also be established either beneath a registered instrument or beneath an unregistered instrument. However, in cases wherever the lease is from year to year or for any term extraordinary one year or reserving a yearly rent the lease is to be created solely beneath a registered instrument of lease [Sec.107 of T.P.Act] and also the lease agreements for a amount but one year don't need registration.

One Year period
It is a typical apply to terminate the lease agreement at the top of each eleventh month and enter into a recent Lease Agreement since if the rent is paid on yearly basis or if the amount of lease exceeds one year, then it's necessary to register the lease agreement beneath sec.17(d) of the Indian Registration Act, 1908.

Contents
An agreement of lease ought to be written rigorously and properly to guard the rights of each the parties and to avoid any misunderstanding at a later date. It ought to be honest to each the proprietor (landlord) and also the tenant (tenant). It ought to invariably mention the parties name and address, description of the property, length of lease, monthly rent collectible, date of payment of monthly rent; clause for sweetening of rent on renewal of lease, quantity of interest-free refundable deposit, penalty clause just in case of default in payment of rent, liability of the tenant for damages to the property and also the fixtures and fittings, notice amount just in case of premature termination of lease; date of commencement of lease and also the date of expiration of lease; notice amount and manner during which the notice can got to be served etc.

Obligations of the proprietor
The first and foremost duty of the proprietor is to abide by the terms of the lease agreement in letter and spirit and to make sure that the tenant is allowed to relish the chartered  premises while not interference. He shall got to make sure that all the essential and civic amenities are provided to the chartered premises. It’s the responsibility of the proprietor to hold out major repairs to the chartered  property to form it livable  and pay municipal and different taxes due on the property. The proprietor ought to make sure that the chartered  premises isn't used for any immoral or unlawful functions nor permit storing of any venturesome and ignitable materials like explosives, etc. proprietor shall issue receipts for the earnest deposit and for the rents received by him in respect of the chartered  property. The proprietor shall refund the protection deposit received from the tenant once the lease has come back to an finish. He shall not below the belt create deductions whereas refunding the protection deposit on grounds of repair to the chartered property. The proprietor is certain to divulge heart's contents to the tenant any material defect in property with respect to its supposed use of that the previous is and latter isn't aware and that the latter couldn't with care discover. The proprietor is additionally certain on the lessee's request to place him in possession of the property.

Obligations of the tenant
During subsistence of the lease, the tenant features a right to relish the chartered premises while not interference from the proprietor or by someone on his behalf. The tenant shall payrto the proprietor the monthly rent for the chartered premises on the in agreement date. He shall conjointly pay the electricity and water bills on or before due dates to the Legal involved authorities and furnish a duplicate of the receipt received by him from such authorities to the proprietor for his records. The tenant shall perpetually keep proprietor educated concerning the additions or alterations that the chartered  premises could need to alter the proprietor to attend to such work. The tenant shall not create any structural alterations to the premises or cause damages to fixtures and fittings throughout the subsistence of the lease. The tenant is beneath a legal obligation to not use the chartered  premises for immoral or criminal functions nor for storing the venturesome and ignitible materials like explosives, etc. The tenant is beneath obligation to use the chartered  premises for self use and to not sub-let a similar unless the lease agreement features a provision for sub-letting. He shall not cause any nuisance to the co-tenants, maintain the premises in a very livable  condition, and on completion of the lease amount, get in the chartered  premises to the proprietor while not making any nuisance upon receipt of the earnest deposit. If the proprietor fails to form any repairs, at intervals cheap time when notice, the tenant could create a similar himself and deduct the expense of such repairs with interest from the rent, or otherwise recover it from the proprietor. If the tenant involves apprehend of any recovery proceedings in respect of the chartered property, or of any encroachment, or interference with the lessor's right in respect of the chartered  premises, he's certain to offer notice thence to the proprietor.

General Grievance
The following grievances are usually encountered by the tenant and also the lessor:

Non-refund of deposit
Some lessors (landlords), for obvious reasons, fail to pay back the protection deposit to the lessees (tenants) upon termination of the lease agreement or create unreasonable deductions from the protection deposit. Generally, the landlords who in the main rely on the income and who would have used the protection deposit for his or her personal wants fail to refund the protection deposit as per agreement. Thus, once the tenant problems notice indicating his intention of vacating the chartered  premises or once the lease amount expires, some landlords would begin dodging until they get the protection deposit from another new tenant. it's the common apply that tenants opt to still occupy the chartered  premises until they come back to the protection deposit since they feel that to induce back their deposit from the owner upon vacating the chartered  premises can be a tough task.


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Friday 30 January 2015

BY OVERSTAYING A LICENSEE CANNOT CLAIM TENANCY RIGHTS

Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore

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With the passage of your time, the system of giving properties inactive and license basis in Maharashtra is taking its roots, however still an honest range of the property house owners are apprehensive as a result of their undecided that they might revisit possession of the properties on the end of the term. However, visible of the subsequent judicial say-so, such worry appears unwarranted, provided legal necessities are complied with.

One Shri Mohd. Hussain article of furniture Walla, (Licensor) because the owner of Flat No. 51, in Victoria residences, St. Alexius Road, Bandra, Mumbai, gave his premises inactive and license basis, as per the Agreement dated 25.03.2003, for a amount of twenty-two months to at least one Ms. Parineeta Choudhary on a monthly fee of Rs.18,000. Additionally, an extra agreement was conjointly dead between the parties for payment of charges at Rs.10,000 per month in respect of article of furniture and fixtures within the same premises. The term of the license invalid in january 2005 and therefore the retailer continuing to occupy the same premises even thenceforth and licensor accepted the monthly fee and therefore the further charges. Solely on tenth Dec 2005, he moved a petition before the Competent Authority, who, besides ordering eviction of the retailer, conjointly directed her to pay the damages at Rs. 56,000/- per month from sixteenth Gregorian calendar month 2005 until delivering possession of the accredited premises to the owner.

This call was challenged by manner of revision u/s forty four of the Maharashtra Rent management Act by the retailer however constant was fired and therefore the order of the Competent Authority was upheld.

Aggrieved by this order the retailer filed a legal instrument Petition No.2276 of 2008 before the Hon' ble city state supreme court below Article 227 of the Constitution of Asian country. The matter came up for hearing before Hon'ble adult male. Justice A. M. Khanwilkar on the ninth Sep 2008, when the licensee pleaded that not issuing legal notice to her and continuing to simply accept the monthly fee, was indicative of the actual fact that the retailer has become the tenant in respect of the licenced premises. however this argument wasn't accepted by the Hon'ble state supreme court that ascertained that the actual fact of  acceptance of the monthly compensation by itself wouldn't be comfortable to completely hold that the link of the parties that of licensor and retailer was born-again into one amongst landowner and tenant and therefore the proven fact that retailer instituted the proceedings before the Competent Authority, virtually once eleven months from end of the license amount, would once more not by itself indicate that he has waived his statutory right of eviction of the petitioner from the suit premises as a result of there is legal presumption u/s twenty four of the Act concerning determinateness of the contents of the lease and license agreement. it'd simply indicate that the licensor allowed the retailer to abide the license amount and zilch a lot of and therefore the relationship would still stay of licensor and retailer.

The Hon'ble high court has, therefore, command that the arrangement between the parties was strictly one amongst the leave and license and therefore the relationship created between them on account of the same dealing was that of the licensor and retailer and visible of the legal presumption u/s twenty four of the Act, it would essentially follow that the retailer is obligated to vacate the premises on the end of the license amount in January, 2005.

On the question of payment of damages from sixteenth January 2005, the Hon'ble high court failed to accept as true with the order of the Competent Authority, as upheld within the revision. 

The Hon'ble high court ascertained that the licensor failed to decision upon the retailer to vacate the suit premises nor enlightened her that she would be susceptible to pay damages for continued possession and he filed the eviction proceedings solely sixteenth Dec 2005. Therefore, the licensor would be entitled for the damages from the retailer at double the speed of fee fastened within the Agreement of License solely from sixteenth Dec 2005, once he initiated the proceedings.


As regards the quantum of the damages, again the Hon'ble state supreme court failed to accept as true with the order of the Competent Authority, as upheld in revision and ascertained that the license agreement provided for the monthly retailer fee @ Rs. 18,000/- solely and therefore the further agreement to pay charges @ Rs. 10,000/- in respect of furniture and fixtures provided threin can't be reckoned for purposes of computing damages u/s 24(2) of the said Act. Therefore, the Hon'ble high court command that retailer would be susceptible to pay license fees @ Rs. 18,000/- from 16-12-2005 until delivering the possession to the suit premises.

In another case concerning a flat at Carmichaell Road in Bhagawati Bhavan at Mumbai given inactive and license by the owner Manju Singh to Janki Ammanraj, Hon'ble Mr. Justice Anoop Mohta command in january, 2009 that once the retailer, in spite of end of the leave and license agreement in Gregorian calendar month 2006 and supply of notice failed to deliver possession of the premises to the land-lord and continuing to be in possession of the licenced premises, the retailer ought to pay damages at double the speed of fee with all the arrears until the time the flat is vacated.
Thus, the abide by a retailer within the licenced premises and acceptance of the monthly retailer fee by the licensor wouldn't mean that the link of licensor and retailer has been born-again into that of land lord and tenant and therefore the retailer would be susceptible to pay the damages at double the speed of the fee fastened within the agreement until it's vacated. 


It has been ascertained that during a sensible range of cases leave and license agreements don't seem to be adequately sealed and registered and 2 agreements are drawn one towards the fee for the premises and another towards article of furniture, fixtures and services etc. as a matter of temptation to avoid wasting expenses and taxes. But it must be kept visible  that where a document is required to be necessarily registered (section 55 of the said Act) and if it's not registered, it can't be taken as associate proof and such a state of affairs could produce the matter in the maximum amount because the relationship could also be construed as of land-lord and therefore the tenant and cacophonous  of the agreement might not entitle the licensor to recover the damages at double the speed of the fees fastened in each agreements.

It would, therefore, be best that the leave and license agreement ought to be adequately sealed and registered as per the provisions of law and a notice ought to be served by the licensor to the retailer beforehand before the end of the agreement to vacate the premises and just in case of failure, besides eviction, the retailer would be to blame for the damages at double the speed of monthly compensation fastened within the agreement. 

A land-lord ought to even have the police verification of the retailer and procure noc from the Society before giving the ultimate form to the current arrangement. If of these legal requirements are taken care of, there needn't be any apprehension in mind to relinquish the flats inactive and license basis, if not needed for self-occupation.
  
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Thursday 29 January 2015

NON ADHERENCE OF SANCTION PLAN RESTRICTIONS AND SET BACK

Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore

http://advocateselvakumar.com/qna.php
The building bye-laws visit surely set backs on sides of the building to facilitate the folks to possess correct light-weight, ventilation, privacy and to save lots of them from dirt and traffic noise. Whereas framing the building bye-laws, the civic authorities additionally confine mind the longer term land needs for broadening roads. It’s detected that folks violate building bye laws by approach of extra floor construction, site set back construction, providing way on the positioning set back ar, balcony space to be reborn in to lounge. 
 
Land use:
The Zonal rules of the excellent Development arrange of Bangalore visit e totally different land use like; residential, commercial, land for civic amenities etc., for systematic development of the neck of the woods.  But, it's detected that the residential buildings settled on the most roads and therefore the roads nearer to industrial space are developed and utilized as industrial property.  Even many industries additionally do surface in these localities in gross violation of zonal rules.  Similarly, residential or industrial buildings do surface in civil amenities sites meant for parks, play grounds, schools, inexperienced belt areas etc. 


Sanction arrange for extra construction:
It a region of the building is made with deviations, the house owners of such property hesitate to approach the arrange enabling authorities whenever they supposed to place up any construction on the property for approval of sanction arranges for the explanation that deviations are detected throughout review by these authorities and thereby proceeded to create any construction while not the sanction plan. Such folks attempt to develop rapport with the involved municipal authorities and place up extra constructions while not sanction arrange. 

The reasons of violation of building byelaws associated sanction plans by the folks is that the majority of the land owners/builders need to use their land to an optimum extent as a result of the residential and industrial properties do fetch high come back.  Presently, in Bangalore there's a steep rise in land price say Rs. 5,000/- per Sq.Ft on an average. 

In a sizable amount of cases, deviations and violation happen with the active support of the officers and therefore the native politicians. Solely in rare cases once it's delivered to the notice of the competent authority of deviations, action would be initiated by the involved authorities is against that action the land house owners knock the doors of the courts and in several such cases courts do grant keep.   Thereupon, the building house owners do get pleasure from the property for long amount despite violation of the byelaws since it might take long-standing for the court to get rid of the matter. 

Violation of bylaws deviation of sanction arrange, zonal rules etc. cannot be allowed to be continuing for long ago it's an unhealthy trend.Therefore, the subsequent suggestions might facilitate in kerb violation of the bye-laws etc.

User friendly byelaws:
The building byelaw and zonal rules of the excellent development arrange ought to be user friendly and acceptable to the bulk of the general public.  Further, the byelaws mustn't incorporates too several technical jargons however ought to be straightforward to modify the somebody to know and follow.  Byelaw ought to be appropriate to the native conditions failing that there would be violation of such laws

Accountability of engineers:
Construction of a building typically takes snot but a year. throughout this point, frequent visit by the involved space engineer and supervisor to search out whether or not the development is in step with sanction arrange etc., would stop violations of the rules by the land house owners. rather than this, the municipal authorities conduct raids once many years of such construction golf stroke the folks to an excellent hardship and embarrassment.To avoid such a state of affairs, strict social control of visit by the involved engineer should be introduced and if any deviations ar detected in a while, the involved engineer ought to be created in charge of permitting such deviations and action initiated against him for dereliction of his official duty. 


Imposition of serious penalty for deviations:
As a sometime relief, for the present building, all deviation is in building prescript plants, and zonal rules may be permissible with totally different slabs of penalty for such violations. The upper the violation, a lot of the penalty. Once user friendly bye laws are introduced, there ought to be no leniency what therefore ever and each deviation ought to be rebuked with severe penalty. 

The building byelaws want revision whenever there's amendment within the C.D.P. of town.The Committee habitual to arrange the byelaws ought to comprise of not solely the specialists within the field however additionally the different sections of the general public in order that the matter might get debated from different section of the general public in order that the matter might get debated from different angles before inward at a conclusion. 

Thereupon, the draft byelaws ought to be circulated amongst the general public to solicit the read and suggestions from folks of various walks of life.  The print and visual media will play a larger role during this regard.   A team of technical officers consisting of city, planners architects, and civil engineers is fashioned to teach the folks on the requirement for adherence of the byelaws whereas at identical enlightening the general public of the penalization for violations.  Similarly, space committees consisting of revered voters and therefore the representative of the residents’ welfare associations are also habitual to observe violations.


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Wednesday 28 January 2015

PROBLEMS OF LARGE TRACT ACQUISITIONS

Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore



There are several risks concerned in exploit massive tracts of land to not mention the large prices. In lately of development at unsafe speed, several developers, company homes and entities have an interest within the acquisition of enormous tracts that modify in extent from 50 to one hundred acres.

Various issues return beside the acquisition of enormous tracts because it is tough to pinpoint these tracts. Would like to have to be classified as one unit if need be. The acquisition needs to be done strategically in keeping with varied factors like the situation, size, dimensions and alternative matters related to it.

There could also be issues like title problems, missing documents, the owners' differing perception on title and documents, oral arrangements, mortgages, encroachments, interests of third parties, communal interests of third parties, communal interests and social problems. Among a brief amount of your time of these have to be compelled to be tackled creatively. Holding the value is another drawback that must have a take into account acquisition. Provision for step-up should even be provided.

Very often there could also be holdings with none title documents because the house owners could say that they're holding ancestral property. These could also be of a considerable size and there should be a transparent method to handle these problems. It’s necessary to research the factors supporting the title and therefore the outworking of a way is required to seek out the title.

The persons who are literally fascinated by a selected holding could have to be compelled to be determined and this might more would like the interpretation of private laws and interests of possession. A girl's interests could are omitted as several believe that it's associate insult to raise the daughter to return for registration because it is felt she doesn't have any interest within the properties once she is married.

Other problems associated with communal interests like ponds, common of a church, mosque, graveyard or memorial park have to be compelled to be sorted out. The selling of waste in a very explicit place may even be a problem. Lands may additionally be classified as government lands, channels and alternative lands with restricted usage. Laws associated with assignments, holdings by persons in society, restrictions on alienations and dealings have to be compelled to be handled.

Further documentation could have to be compelled to be obtained concerning power of lawyer given long back and a mechanism to fall back thereon should be required. Typically massive extent of land are planned and sold-out. each such planned ton needs to be no inheritable  for consolidation of acquisitions.
Acquisitions could also be for many public functions like formation or enlargement of roads, fixing of industries and alternative public interest matters. Of these have to be compelled to be absolutely checked and observed. Unfinished litigations, proceedings, recovery proceedings, awards or court orders which will impact the property could also be there. Such problems could are suppressed or unconcealed at points wherever the matter has return to an important position. These problems should be searched out with caution. All revenue records for a given amount of your time should be scrutinized and there ought to understand of the implications of documents.

Dealings could have to be compelled to be undertaken through intermediaries is aware of as accumulators or aggregators. Such persons could have created up the papers in a very approach that might show that everything was alright. Typically they'll honestly not have understood the implications of the many crucial factors.

Time planning and meeting deadlines are substantially a matter of concern. The date prefixed for finishing the acquisition could are found in a very casual manner and there could also be competition at each purpose. Proposals are tied to funding and varied interests could are created from the beginning.

Quick decision-making, analysis of title, assortment of documents, risk coverage, collecting clear documents, implementing effective processes, meeting prices, determination supply and making purposeful documents ar all a part of the method that poses a challenge. This is often really a battle of wits and solely a number of have the capability to execute the work. Cooperation is required at every stage.

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