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Clause to add for no commercial activites in a rental agreement for a villa given for residential purpose to a family
Hi, I want to include a clause to add for no commercial activites in a rental agreement for my villa which has to be given for residential purpose to a family. Kindly let me know the appropriate words to use in the rental agreement.
Asked 2 days ago in Property Law
Religion: Hindu
9 Answers
The licensee shall use the villa for residential purposes only . the licensee agrees not to use the premises for any commercial purposes
Hi Ajay sir, Can i use the word LESSEE instead of licensee. plz advise. kind regards
Asked 2 days ago
“The party of second part (tenant/leasee) agrees that the schedule property will be used exclusively for residential purpose. No commercial activities, business, trading online or offline, gaming online or offline, sports, gymnasium, lending of goods/services, cloud kitchen or any other shall be allowed in the premises.”
Proper inclusion of such clause depends on the tenor to agreement. Above draft can be modified as required.
sure you can use word lessee instead of licensee
Yes, a no commercial activity clause can be added to a residential rental agreement.
One should certainly include “no-commercial activities” clause if the sanctity of a residential premises is to be sustained.
No commercial activity: A clause that prohibits commercial activity on the premises.
The clause should be : that the tenant agrees to not to use or permit the leased/rented premise to be used for any commercial activity.
If the premises has been let out on lease then the tenant would be termed as lessee.
He can be called as licensee only if it was under a leave and license agreement and not on a lease agreement
Dear Client,
You have enquired as to an addition of a clause for no commercial activities in the rental agreement for your villa, that has to be given for residential purposes to a family. With respect to the appropriate words to be used in the rental agreement, firstly, very clearly, there must be a mention made that the property shall be used SOLELY FOR RESIDENTIAL PURPOSES. Additionally, it must also be specified that, the tenants shall NOT engage, permit, or allow any COMMERCIAL ACTIVITIES, without written prior consent of the owner of the Property, and any violation of the same, would result in severe action being taken including termination of the tenancy at the owner's will. However, it is suggested that, you ensure that the clause formulated is in compliance with the principles enshrined under the Indian Contract Act, 1872, the Transfer of Property Act, 1882, and the Housing Regulations present in your area.
Hope you find this answer satisfactory.
- You can mention in the clause that " The said villa is only for residential purpose , and the lessee / tenant undertakes that he will not use the demised property for any kind of commercial purposes , and further assured that in the event of non-compliance of this clause the lessor/landlord will have legal right to evict him from the tenanted premises.
- Further, if the said Villa is a part of the society , then the tenant itself will not get permission from the society to run any commercial activities from the villa.
At all times during the said term to use and occupy the demised property as residential dwelling house for himself and the members of his family not to keep any paying guests or share accommodation with outsiders and not to carry on nor allow nor permit others to carry on any trade, commercial or business activity in the said premises nor use nor permit others to use the same or any part thereof for any illegal purpose.
