You should enter into registered lease deed for period of one year
2) registration of lease deed is mandatory
3) if lessor is willing to enter into un registered lease deed carpet the offer to recover your Rs 12 lakhs
Process to extend the lease in Karnataka
I am from bangalore and have a leased house for last 2 years 9 months. I had discussion with owner about extension and she is willing to extend by 1 year. What is procedure to do so ? What if the owner is not willing to come to SRO ? When extending i want to clearly state that the lease period will extend until money is given back. So i don't have to keep asking for extension every year.(i am sure she will not return the money) Background about owner : I have already filed a PCR against her under sec 138 (cheque bounce case of 12 lakhs) the warant is issued against her. This amount is different from the amount that i paid for lease house. She has lot of loans(more than 3 crores) and she ran away to Hyderabad. Current address is unknown and she is not willing to meet. Mail me : [deleted]
Asked 3 years ago in Property Law
Religion: Hindu
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16 Answers
You can either renew the lease agreement or extend the same to the desired extent of period either by making an endorsement at backside of the last page of the original lease deed or get a new deed executed.
Without her physical presence to sign the documents in front of you anything she may do at background can be suspected hence you may be cautious about it.
1. Since the Lessor's current address is unknown and is not willing to meet you, then preparing and registering the lease deed is impossible. However, if she authorises someone to represent her for signing the document by POA, then a fresh Lease Deed or the extension of earlier Lease Deed can be done.
2. Procedure is preparing the Lease Deed and getting it registered in the jurisdictional Sub Registrar's Office.
3. In case, she can't physically be present in Sub Registrar's Office, and also not willing to authorise someone to represent her by giving POA, then it's advisable for you to continue to live in the leased premises indefinitely until you are returned the lease amount.
Thanks for the response, If she is not willing to come to SRO nor arrange a POA does an email response is sufficient as proof? With such a scenario, does she(owner) have the right to sell the house or What if the bank (she probably could have taken a loan against the property) auctions it?
Asked 3 years ago
Mere email is not sufficient
enter into lease agreement for period of one year or so
3) she can sell the house
4) bank can seek to auction the property
5) seek stay of auction by filing application in DRT
- If the lease for eleven months, registration is not obligatory. You can execute such lese with her without going to Sub-Registrar’ office. You can even make it for eleven months and 29 days.
- An agreement to continue lease till landlord refunds advance is not valid. It has to be for specific period. But after expiry of lease you can continue to occupy the property till she pays back. You are having charge on the house till you get the refund.
- Continue 123 case, as it is having no bearing on rent agreement.
- She can sell the house but lease will continue with purchaser of property.
- Bank can also take over the house with continuation of leas with you till the expiry of lease.
Yes you can mention the same in contract. You can also retain the possession till she pays you but for that period of possession you need to pay her amount as per prevalent market conditions
As per Information and Technology Act , email response will be considered legally valid.
Owner can't sell the house if it has already been mortgaged to a Bank or financial institution. Only after the discharge of the loan, the property can be sold by the owner.
Before the lending Bank could auction the property, intimate the Bank in writing that your money had to be returned to you, in case of auction of the property.
- Yes, you can renew the leased deed for further one year , if the owner not wanted to extend for further 2 years 9 months.
- You can execute a lease agreement for one year after mentioning that earlier you was in possession of the property and further this agreement is extending for one year mutually , and before this period none will have right to take any legal action against each other for evicting or vacating the premises.
- Further, you must mention in the deed , that the security amount received at the time of giving the premises on lease has not been returned , and it will be returned at the final vacation of the premises.
- Since, you have paid the security amount to her , then this agreement should be registered from the office of the registrar for safety.
- If she is unable to come for registration , then she can appoint any other person after giving POA to execute that deed.
- Email is not enough and it can be denied for the receiving of the amount.
- Yes, she can sell the property or even the bank can auction of the property if this property is mortgaged with the bank , and she is not paying the loan amount.
You can create documentary evidence to prove your intentions to extend or renew the lease agreement
If the house property is mortgaged under home loan, then she cannot sell the property without discharging the loan amount.
Thanks for the response ! It is great to know that , i can continue to stay in the house until money is refunded. Any reference to such acts wil be great. I don't want to be kicked out after lease period is over by some goon. The only problem i see from your response is selling of house. The owner or bank has rights to sell. This will lead me to exit the house after lease period ends as it is gone to new owner but who will be responsible for paying back my money, is it new owner or the old owner? What if the new owner disagrees ? Is there way i can prevent the house being sold at first place before my money is deposited? ( at the same time i hold the house until money is deposited.) Currently there is a tenant in house who does not know all these stories and i might not know when it is sold.(this is why I am worried more)
Asked 3 years ago
It's not matter of right you stay there you will be entitled to pay the rent for the same which will be adjusted in your SD if any paid to the owner.
The bank may initiate action to auction sale of the property if the borrower defaulted in loan repayment by invoking sarfaesi Act.
You can obtain a stay only till the expiration of current lease period.
The bank or the new buyer cannot be held liable for returning your deposit amount.
You have to recover the same by due process of law.
Your contract is with old owner
he is liable to refund your money
you can seek court orders restraining sale if house till your money is refunded
Very pertinent question. There is way to prevent transfer of property to third parties. You need to file a suit for recovery of advance paid. In the suit seek attachment of rented property till the judgment is passed and it takes years to pass a judgment. Such attachment can be obtained under Order XXXVIII of Civil Procedure Code, 1908. An attached property can be transferred, also seek direction to sub-registrar not register any transfer of property. But such attachment will not be effective against bank as bank has prior charge on the property.
Different perspectives I see as a response from different experts and of course, they are helping me to structure my thoughts, I would be happier if they are supported by Acts like a few experts are already doing. So, here is my understanding so far, I cannot hold the premises without the lease being extended, but with her permission, I can. This is leading me to ask about the purpose of the lease being registered in the first place, I spent registration charges to protect the SD, and now no one can stop the house from getting sold and putting me in an orphan situation, running behind pillar to post. Does the Lease registration act talk about protecting or returning the SD amount at all? Also, I understand, If she is not willing to come to SRO, there is an option to have an agreement for 11 months and 29 days without registration which is legally acceptable for the said period. Both of us are happy until this is extended every year the same way or until the SD is returned. (Assuming she/bank does not sell the property). Also, I understand, after selling I am allowed to continue until the lease period after which I am kicked out, making me an orphan again, and fighting the case with the old owner who probably is gone forever, BCS I don't have her actual address to sue her. This clearly says that after selling i am at serious risk. To stop selling i have to break the lease and initiate a recovery suit, which still cannot stop the bank from selling! What court orders can restrain the house sales by any means (bank or owner)? I am sure recovery suit is going to take a long time and by the time anything can happen (Especially when the owner is a ghosted)
Asked 3 years ago
Terms of agreement are sacrosanct
2) lease deed must be containing clause that security deposit would be returned on expiry of lease
3) if lessor refuses to return security deposit you have to sue lessor to recover your money with interest
4) if bank seeks to auction property you have to approach DRT seeking stay of auction
The lease agreement cannot be registered unilaterally.
Further you are already residing as a tenant in the rented premises under an existing lease agreement, therefore upon termination of lease agreement, the bank may forcibly evict you from the premises if they have invoked sarfaesi act for the borrower defaulted the repayment of mortgage home loan and the bank would not permit the registration of renewal or extension of existing lease agreement.
The bank while initiating action for auction sale of property, is not responsible for the tenant's security deposit held by the landlord.You my have to file a recovery suit to recover the security deposit amount.
You can neither stop the bank or the owner from selling this property, however you can file a suit for injunction against the owner if he is trying to sell the property without involving the bank.
The court case will take its own time to get the case disposed, but no short cut method will come to your rescue to recover your money even if you put all your efforts to recover the same until you resort to some illegal ways to recover your money.
You need to take injunction order against bank for restraining the sale on merits.