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Sunday, December 27, 2015

House Lease Agreement

 

Lease agreement made simple for tenant

 

Lease Agreement

As the Lease Agreement sets out the business relationship of the parties, it should be carefully drafted. The terms should be clearly expressed to both the parties. The Lease Agreement should list the terms of lease, deposit amount and monthly rentals. Apart from financial terms and conditions, clauses describing the other binding terms and conditions of the agreement are required to be fully documented.

Shown below are the sample drafts for Lease Agreement and Leave & Licence Agreement.

Draft Lease Agreement

THIS LEASE DEED made at _____ on _____ BY AND BETWEEN:

_____ _____ resident of _____ (hereinafter referred to as the "LESSOR", which expression shall, unless repugnant to the context thereof, mean and include executors, administrator, legal representative and assigns) of the FIRST PART;

AND

M/s. _____ , a company incorporated under the Companies Act, 1956, having its office at _____ (hereinafter referred to as "LESSEE", which expression shall, unless repugnant to the context thereof, mean and include its executors, administrator, legal representative and permitted assigns) of the OTHER PART.

WHEREAS:

1.         LESSOR is in lawful possession and has a clear, absolute, unrestricted title and ownership rights with respect to the premises situated at _____ consisting of _____ bedrooms, _____ bath rooms, _____ large balcony, 1 kitchen, _____ garages, furnished with the fittings and fixtures as specified inAnnexure "A" hereto along with right to use the open and common areas as specified in Annexure "B" (hereinafter referred to as the "DEMISED PREMISES").

2.         The LESSOR has represented to the LESSEE that title of the DEMISED PREMISES is free from all charges, lien, mortgages, encumbrances and imputation of any/whatever kind and the LESSOR is lawfully entitled to lease the DEMISED PREMISES to the LESSEE.

3.         The LESSOR has offered to give on lease the DEMISED PREMISES as residential accommodation for use by the LESSEE.

4.         On the foregoing representations of the LESSOR, the LESSEE has accepted the offer of the LESSOR to take on lease the DEMISED PREMISES on the following terms and conditions:

NOW THIS DEED WITNESSETH AS UNDER:

1.         TERM OF THE LEASE DEED
1.1.      That in consideration of the monthly rent hereinafter reserved, LESSOR hereby demises unto LESSEE the DEMISED PREMISES, by way of lease, along with the right to use the entrance, passages, staircases, landings, lobbies and other common and open area belonging and pertaining to the DEMISED PREMISES, for the period of _____ commencing from _____ to _____ ,  together with easements, privileges, rights and advantages appurtenant thereof subject to the covenants and conditions in this LEASE DEED.

1.2       That on mutual consents of the LESSOR and LESSEE the tenure of this LEASE DEED may be extended/ renewed for 01 (one) further period of _____ on the same terms and conditions of this LEASE DEED. In case of renewal, the monthly compensation shall remain Rs. _____ (Rupees _____ Only) per month for the renewed period.

2.         RENT AND SECURITY DEPOSIT

2.1       The monthly consideration payable by LESSEE to LESSOR for the DEMISED PREMISES shall be Rs. _____ /- (Rupees _____ Only) per month towards rent, inclusive of all municipal rates and taxes. The rent shall be payable less applicable tax deducted at source, the receipt of which LESSOR shall separately acknowledge. The rent herein shall be paid monthly in advance on or before 10th day of each English Calendar month. The rent for any period which is less than one (1) month shall be prorated based on a thirty (30) day month.

2.2       On execution of this LEASE DEED the LESSEE shall deposit a sum of Rs. _____ /- (Rupees _____ Only) as an interest free refundable Security Deposit with LESSOR (the "Security Deposit"). The said amount of Security Deposit shall be refunded by LESSOR to LESSEE on expiry of this LEASE DEED or earlier determination. The LESSOR shall refund the Security Deposit vide Demand Draft/Pay Order.

The LESSEE shall make payments directly to the below mentioned bank account provided by the LESSOR.

Bank Account Name: _____ 
Bank Account Number: _____ 
Bank Address:_____ 
            
3.         USE OF THE DEMISED PREMISES

3.1 The LESSEE agrees and covenants as follows:
  1. To use the DEMISED PREMISES only for the purpose of residence of its employee _____ and his/her family.

  2. not to use the Demised Premises or any part thereof for any improper, illegal, or immoral purpose(s). 

3.2       In the event _____ leaves the employment of the LESSEE or is transferred, this LEASE DEED will stand terminated. However, even in this case, the LESSEE shall still need to give the requisite notice to the LESSOR.

4.         REPRESENTATIONS, WARRANTIES AND COVENANTS OF LESSOR

4.1       Peaceful and Vacant Possession/Enjoyment
4.1.1    That LESSOR has represented to LESSEE that it enjoys the uninterrupted, quiet, peaceful, physical, vacant and legal possession of the DEMISED PREMISES without any interference whatsoever. That, on the date hereof, LESSOR has handed-over the peaceful, vacant, physical and legal possession of the DEMISED PREMISES to LESSEE.

4.1.2    LESSOR hereby confirms that LESSEE, on paying the agreed rent and observing the terms and conditions shall be entitled to peaceful possession and quiet enjoyment of the DEMISED PREMISES during the period of LEASE DEED free from any interference, objections, eviction, claim, interruption and demand whatsoever by LESSOR, or any Government Authority or any person lawfully or equitable claiming by of, from, under or in trust for LESSOR and/or any Government Authority. LESSOR shall duly observe and perform the obligations on its part herein contained and shall extend all its cooperation to enable LESSEE to fulfil the terms and conditions and obligation on its part contained herein.

4.2       Modification/Alteration in the DEMISED PREMISES
            That LESSOR hereby agrees and confirm that LESSEE shall have the right to modify, refurbish and alter the DEMISED PREMISES, at its own costs and expenses as to install air-conditioning unit(s) and all other electrical appliance(s) and any equipment for its use including wiring and electrical fittings as may be required by LESSEE at the DEMISED PREMISES. LESSEE shall, on the expiry of this LEASE DEED, be entitled to remove all such equipment, units, appliances etc. from the DEMISED PREMISES, provided that LESSEE restores the DEMISED PREMISES to its original condition except for normal wear and tear arising from day to day use or from such force majeure causes as are beyond the control of LESSEE.

4.3       Electricity
The LESSEE has satisfied itself that the quantum of electricity supply to the Demised Premises is adequate for the use of the Premises by the LESSEE.

Notwithstanding this, the LESSEE shall be free to, at its own costs, augment the quantum of electricity supplied to the Demised Premises, and the LESSOR shall assist (including signing of relevant applications, visits to the concerned offices) the LESSEE, in all formalities with the competent government and other local authorities in obtaining the necessary new/increase in power load/electricity.

4.4       Taxes
            LESSOR shall bear and pay all the property taxes, rates, cesses duties, charges levies, fines, penalties and outgoings, present and future, payable to the appropriate government or any other local authorities and municipalities in respect of the DEMISED PREMISES and for renting of the same by LESSOR to LESSEE, and LESSOR shall further indemnify and shall at all times keep indemnified LESSEE from any and all liabilities and consequences arising from any and all such non-payment, delayed payment, attachment, disturbance of possession, notice, order litigation, etc.

4.5       Repairs and Maintenance
            LESSOR shall be responsible for major repairs, external painting and all other major civil, electrical and plumbing works in respect of the DEMISED PREMISES, including but not limited to bursting of water and sanitary pipes, any cracks in the structure, seepage, termite etc. Such repairs shall be attended to and repaired by LESSOR with in fifteen (15) days of notice in writing by LESSEE to LESSOR, failing which LESSEE may, at its option, get the repairs done and LESSEE shall be entitle to adjust the amount spent on such repairs against the rent payable for the subsequent months. Other works constituting 'major' works shall be discussed and mutually agreed upon.

4.6       Indemnities
4.6.1    That LESSOR represents and warrants that he/she is the lawful and rightful owner of the DEMISED PREMISES and is fully entitled to execute this LEASE DEED. LESSOR shall hold LESSEE fully indemnified and harmless against any and all costs, liability(ies), claim(s), prosecution(s), expenses and the like suffered and/or incurred by LESSEE with respect to the use and occupation of the DEMISED PREMISES and/or any dispute regarding the DEMISED PREMISES.

4.6.2.   That LESSOR further represents and warrants that the DEMISED PREMISES shall not be mortgaged or charged or encumbered to any person(s), company(ies) and/or entity(ies) whatsoever affecting the rights and entitlements of LESSEE under this LEASE DEED and shall always keep and hold LESSEE indemnified and harmless in this regard.

4.6.3    That LESSOR shall abide by all laws, Bye-laws Rules & Regulations of the Government or any other authority or local body and shall observe and perform the covenants and conditions and shall attend to answer, and be responsible for all violations of any of the conditions or rules, or Bye-laws, that may be required, to be followed, observed and performed by owner of a property, by the said authorities and shall sign and execute any documents required thereof and LESSOR shall always keep & hold LESSEE harmless and indemnified in this regard. It is expressly clarified that if any amount is required to be spent to comply with any of the requirements of the aforesaid authorities/municipalities, including but not limited, to the fire fighting equipment(s), the same shall be borne by LESSOR.

5.         REPRESENTATIONS, WARRANTIES AND COVENANTS OF LESSEE

5.1       Payment for Electricity/Water
            That the LESSEE shall pay, directly and in time to the concerned authorities regularly, all charges for electricity (power and light) and water consumed during the period of this LEASE DEED as per the meter reading provided thereof. However, it is expressly agreed that LESSOR shall be liable for payments of all outgoings of any kind whatsoever, including all water and electricity charges, up to the date of handing over of the vacant physical possession of the DEMISED PREMISES and after the expiry/termination of the LEASE DEED.

5.2       Repairs
            That minor day-to-day repairs of the DEMISED PREMISES will be the responsibility of LESSEE.

5.3       Sub-letting of the DEMISED PREMISES
            That LESSEE shall not sublet or otherwise part with the possession of the whole or/and part of the DEMISED PREMISES.

5.4       Structure Changes/Alteration of the DEMISED PREMISES
            That, subject to the provisions of clause 4.2, LESSEE shall not carry out any major additions or structural changes to the DEMISED PREMISES without prior consent of LESSOR. LESSEE shall be always allowed to carry on minor repairs, maintenance jobs in the DEMISED PREMISES at its cost.

5.5       Inspection of the DEMISED PREMISES
            That LESSEE shall permit LESSOR or their agents with or without workmen to enter into and upon the DEMISED PREMISES only at reasonable times after due notice for the purpose of examining the state and condition.

6.         FORCE MAJEURE

6.1       That it is expressly agreed between the Parties that if due to flood, fire, earth quake, tempest or any other acts of God or for any reason beyond the reasonable control of human beings, the DEMISED PREMISES or any part thereof cannot be used and/or occupied by LESSEE or if the DEMISED PREMISES or any part thereof is sealed or is rendered unfit for use and occupation by any statutory authority and/or municipality, LESSEE shall not be liable to pay any rent or any other amount, whatsoever, to LESSOR for such period.

6.2       Notwithstanding anything contained in this LEASE DEED it is hereby agreed by and between the Parties hereto that if the DEMISED PREMISES remain in such a condition, as stated in Clause 6.1 above, for more than fifteen (15) days than notwithstanding the provisions of Clause 7.1 of this LEASE DEED, any time after the expiry of said fifteen (15) days, LESSEE shall be entitled to terminate this LEASE DEED, upon giving fifteen (15) days notice to this effect to LESSOR any time thereafter and in such event LESSOR shall be liable to refund entire amount of the Security Deposit to LESSEE without any delay or demur.

6.3       LESSEE shall not be responsible for any loss or damages to the DEMISED PREMISES resulting from fire, earthquake, storm, war, civil disturbances or other such happening, as stated above, beyond the control of LESSEE or by the acts of God etc.

7.         TERMINATION

7.1       Notwithstanding anything contained in this LEASE DEED it is hereby agreed by and between the Parties hereto that the LESSEE and the LESSOR shall be entitled to terminate this LEASE DEED without assigning any reason thereof and by giving a thirty (30) days written notice to the other party to this effect or rent in lieu of the notice. In such event the LESSOR shall be liable to refund entire amount of the Security Deposit to LESSEE without any delay or demur.

7.2       On expiration or early determination of this LEASE DEED simultaneously with the cessation of use of the DEMISED PREMISES by LESSEE, the Security Deposit shall be refunded along with any unadjusted compensation by the LESSOR to the LESSEE in full vide a demand draft/pay order without any interest. It is expressly agreed by the parties that in the event of LESSOR failing to refund the Security Deposit along with any unadjusted compensation on the date of expiry or earlier determination of the LEASE DEED, LESSEE shall be entitled to interest @ ___% per annum from the date of expiry or early determination of this LEASE DEED, as the case may be, till the date of actual payment.

7.3       Subject to Clause 7.2 above, upon termination or earlier determination of this LEASE DEED, the LESSEE shall hand over the DEMISED PREMISES to the LESSOR in its original condition except for normal wear and tear arising from day to day use or from such force majeure causes which are beyond the control of the LICNESEE. 
                                                                                          
8.         MISCELLANEOUS

8.1       If any provision of this LEASE DEED or part thereof is rendered void, illegal or un-enforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

8.2       This LEASE DEED constitutes the entire LEASE DEED between the Parties and save as otherwise expressly provided no modification, amendment or waiver of any of the provisions of this LEASE DEED shall be effective unless made in writing specifically referring to this LEASE DEED and duly signed by the Parties hereto.

8.3       LESSEE shall be at liberty to place its nameplate (including that of the actual occupant of the DEMISED PREMISES) of a size not exceeding a normal size in or upon any part of the DEMISED PREMISES of such size and in such position as may be thought it fit from time to time provided no damage is caused to any part of the DEMISED PREMISES.

8.4       Any notice required to be served herein shall be in writing and shall be sufficiently served - in case of the LESSOR, if sent to it by registered post/express courier/Speed Post acknowledgement due, or by hand delivery, at the following address:

_____

And in the case of the LESSEE, if sent to it by registered post/express courier/Speed Post  acknowledgement due, or by hand delivery, at the following address:

_____

8.5       The singular and plural number and the masculine, feminine and neuter gender shall each include the other.

9.         GOVERNING LAW
This LEASE DEED shall be governed by the laws of India. The parties shall attempt to resolve amicably all disputes arising out of or in connection with this LEASE DEED, including its existence and interpretation. The Parties agree that any suit, action or proceeding brought by either Party against the other Party to this LEASE DEED in connection with or arising out of this LEASE DEED shall be settled by Arbitration as set forth below.

10.       DISPUTES RESOLUTION AND ARBITRATION
Any dispute between the Parties, that cannot be settled amicably in the manner described hereinabove within a reasonable period of time, may be submitted by either Party to arbitration. Arbitration shall be held in _____ . The arbitration shall be conducted as per the provisions of the Indian Arbitration and Conciliation Act 1996 and any statutory modification or re-enactment thereof. The arbitration proceedings shall be conducted in the _____ Language. The arbitration award shall be final and binding upon the parties.  Each party shall bear the cost of preparing and presenting its case, and the cost of arbitration, including fees and expenses of the arbitrators, shall be shared equally by the parties unless the award otherwise provides.

11        Each party shall bear their respective attorneys' costs and brokerage in respect of this LEASE DEED.  Stamp duty and registration fees, if any, payable on this LEASE DEED or any renewal hereof shall be borne by the LESSEE alone and the LESSEE shall keep the original LEASE DEED.

IN WITNESS WHEREOF the parties have set their hands to this LEASE DEED on the date, month and year mentioned hereinabove.

LESSOR                                                                     LESSEE
____________________                                         for and on behalf of
                                                                                    _____ _______

_____ _____

 

WITNESSES:
__________________                                                __________________
[                             ]                                                     [                             ] 

SAMPLE LEAVE AND LICENSE AGREEMENT

 

THIS AGREEMENT OF LEAVE AND LICENSE made at made at _____ on _____ BY AND BETWEEN:

_____ _____ resident of _____(hereinafter referred to as the "Licensor", which expression shall, unless repugnant to the context thereof, mean and include his/her/their executors, administrator, legal representative and assigns) of the FIRST PART;

AND

M/s. _____, a company incorporated under the Companies Act, 1956, having its office at _____ (hereinafter referred to as "Licensee", which expression shall, unless repugnant to the context thereof, mean and include its executors, administrator, legal representative and permitted assigns) of the OTHER PART.

WHEREAS:

1.         Licensor is in lawful possession and has a clear, absolute, unrestricted title and ownership rights with respect to the premises situated at _____ consisting of _____ bedrooms, _____ bath rooms, _____ large balcony, 1 kitchen, _____ garages, furnished with the fittings and fixtures as specified inAnnexure "A" hereto along with right to use the open and common areas as specified in Annexure "B" (hereinafter referred to as the "LICENSED PREMISES").

2.         The Licensor has represented to the Licensee that title of the LICENSED PREMISES is free from all charges, lien, mortgages, encumbrances and imputation of any/whatever kind and theLicensor is lawfully entitled to license the LICENSED PREMISES to the Licensee.

3.         The Licensee has represented to the Licensor that it requires a license to use the LICENSED PREMISES as residential accommodation.

4.         The Licensor and the Licensee have agreed on the following terms and conditions.

NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBY AGREED AND CONFIRMED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

  1. The Licensee represents as follows:


    1. the use and occupation of the LICENSED PREMISES will not tantamount to a tenancy and will not create any tenancy or other similar rights;
    2. at no point of time will the Licensee contend that this Agreement or the occupation of the LICENSED PREMISES amounts to or creates any tenancy or other similar rights to the LICENSED PREMISES or any part thereof;
    3. the Licensor alone shall remain in possession of the LICENSED PREMISES and theLicensee shall at no time whether during the subsistence of the license or thereafter be in possession of the LICENSED PREMISES or any part thereof;
    4. in case of any default by the Licensee the Licensor shall be entitle to the protection and relief afforded by Section 24 of the Maharashtra Rent Control Act, 1999 and theLicensee shall not raise any contention to the contrary.

  2. Solely in reliance of the representations made by the Licensee above the Licensor has agreed to license the LICENSED PREMISES to the Licensee strictly on the terms and conditions set out hereinafter. The license shall be non transferable and non-assignable.

  3. The period of the license shall be for a term of _ _ (______) months commencing from ________, and expiring on __________.

  4. The license fee for the occupation and use of the LICENSED PREMISES shall be Rs. ________/- (Rupees _____________ only) per month for the above term.

  5. In addition to payment of the license fee as herein above provided, the Licensee shall pay all charges relating to the LICENSED PREMISES. Such charges shall include water and electricity charges, taxes and outgoings including municipal taxes, cess, duties, impositions and levies. If the Licensee fails to pay charges as above, the Licensor may in his sole discretion pay the charges and recover the amount paid from the Licensee along with ---% interest.

  6. The Licensee shall make a Deposit of Rs. _ _ _ _ _ _/- (Rupees ____ ) only with the Licensor. This Deposit shall be refundable to the Licensee on the Licensee handing over peaceful possession of the LICENSED PREMISES in accordance with this Agreement.

  7. The LICENSED PREMISES shall be used by the Licensee only for residential purposes.

  8. The Licensee will keep and maintain the LICENSED PREMISES in good order and condition and upon the termination of the license will leave the same in as good condition as they were on the date of initial occupation (but for reasonable wear and tear). The Licensee shall also comply with all laws, rules and regulations of all authorities competent to frame laws, rules and regulations in relation to the LICENSED PREMISES.

  9. The Licensee shall not store or bring upon the licensed premises any hazardous articles or articles of a combustible, inflammable or dangerous nature except cooking gas cylinders in the LICENSED PREMISES nor shall the Licensee do or permit or suffer anything to be done on the LICENSED PREMISES by reason whereof any insurance effected on the LICENSED PREMISES may be rendered void or voidable or whereby the rate of premium thereon may be increased. Further the Licensee shall comply with all instructions of the insurers and fire authorities as to fire precautions relating to the LICENSED PREMISES.

  10. The Licensee shall keep articles in the LICENSED PREMISES at its own risk and costs and theLicensor shall not be responsible for any theft or loss of goods and articles in any manner whatsoever nor for any bodily injury or harm to anyone residing in the LICENSED PREMISES for any reason whatsoever.

  11. The Licensee shall not during the period of the license make any structural alterations in the LICENSED PREMISES but shall be at liberty to install air-conditioners and domestic electric appliances and other conveniences reasonably required by the Licensee.

  12. The Licensor shall be responsible for carrying out all the external repairs and repairs and repairs of structural nature in the LICENSED PREMISES. All other repairs shall be the responsibility of the Licensee.

  13. At the time of vacating the LICENSED PREMISES, the Licensee shall be entitled to take away, after restoring the LICENSED PREMISES to its original condition (but for reasonable wear and tear), all fixtures and fittings installed by the Licensee. All modifications that are of a permanent nature shall however revert to the Licensor for no additional cost.

  14. During the terms of this license, the Licensor shall not sell, encumber, transfer or otherwise dispose off its right, title and interest in the LICENSED PREMISES to the prejudice of theLicensee.

  15. In the event of the Licensee committing any breach of the terms and conditions of these presents and failing within 30 days to remedy or make good such breach on receipt of such notice in writing from the Licensor, then without prejudice to the other rights and remedies, the Licensor shall have right to terminate this agreement.

  16. Each Party shall indemnify and shall keep indemnified the other from and against all actions, suits, proceedings, costs, charges, and other liabilities brought, suffered or incurred by the innocent Party by reason of any breach, non-performance or non-observance by the other Party of the provisions of this Agreement.

  17. On the termination of this license the Licensee shall forthwith remove itself and its belongings, articles and things from the LICENSED PREMISES.

  18. The Licensor and her authorised representatives shall have full liberty to inspect the LICENSED PREMISES at reasonable hours in order to ascertain the condition thereof  and/or effect any repairs as the Licensor may deem necessary.

  19. Each party shall bear and pay their respective Advocates, Solicitors and real estate Agents cost.

  20.  Stamp Duty and Registration charges levied by the Government will be borne by the Licensee.

  21. Any notice intended to be given to the parties hereto by each other shall be deemed to be properly and validly given if it is delivered to or sent by registered post acknowledgement due or hand delivered, to the respective address of the Licensor hereinabove mentioned and to theLicensee at the LICENSED PREMISES.

  22. The Licensee hereby covenants with the Licensor that it will at all times hereafter well and sufficiently indemnify and keep indemnified the Licensor and save it harmless against any action, proceedings, claims or demand that may be filed, taken, instituted or made against it in the event of the Licensee breaching any of the provisions of any Act or statutory regulations or in consequence of any act or omission or default of the Licensee, its agents and servants, against all charges, damages and expenses which the Licensor may have to pay, incur or sustain by any such action, reason, proceeding, claim or demand or otherwise in relation thereto.

  23. In the event of any change, modification or amendment in Law relating to Leave and License by any Act of Legislation, Notification, Ordinance, Judgement or otherwise howsoever, by virtue whereof the Licensee is granted, conferred upon and/ or entitled to any greater rights other than those conferred under these presents as contemplated under Section 24 of the said Act, then in such event, this Agreement shall come to an end mutatis mutandis on the day prior to such legislation notwithstanding the tenure of the license granted hereunder.

IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written.

 
SIGNED and DELIVERED

 

 

by the within named Licensor

 

 

Ms. ___________________

 

 

in the presence of

 

 

 

 

 

SIGNED AND DELIVERED by the

 

 

within named Licensee _____________

 

 

by its Authorised Signatory

 

 

Mr. ___________________

 

 

in the presence of

 

Note: Samples given above are informative in nature and can be modified as per individual requirements.

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