Respected Lawyers, A tenant would like to rent our warehouse and set-up a small to medium scale industry related to water processing. I am reaching out to you for 1. guidance on the ideal lease terms (they want it to be 10 years) 2. Given they would be investing considerable capital, how do we ensure that there are no legal issues upon end of lease, delayed or missed rental payments. 3. What should be the terms of early termination of lease for reasons I cannot predict at this time. Thanks
you can execute lease deed for period of 10 years
2) lease deed should provide that on expiry of lease period lessee shall vacate the premises failing which would be liable to pay penal charges of x amount per month for delay in delivery of possession
3) you can terminate the lease on default of payment of lease rentals , breach of contractual obligations
4) get lease deed drafted by lawyer
1. You can enter into a lease agreement for ten years, but its registration is mandatory
2. You can mention there that in the event of non-payment of rent for even 2 months the agreement will be terminated and the landlord will have to evict the tenant with one month notice.
3. You can take services of a lawyer for drafting the lease deed.
There can be no straight jacket formula that we can spell here. You should engage a lawyer, if desired from this portal, for the drafting of a flawless commercial Leave and License Agreement to protect your rights.
Lease Term:
Safeguards:
Early Termination:
Consult a property lawyer to draft a robust lease agreement.
1. It is advisable to engage a competent lawyer to draft the lease agreement suitably to include terms not prejudicial to your interests. Or, if the would-be tenant gives you an agreement drafted for them by their lawyer for execution, better get it vetted by your lawyer, so that your interests are taken care of.
2. Suitable clauses can be incorporated in the lease agreement to prevent such eventualities.
3. Standard termination clauses are there for any such lease agreement. Discuss with your lawyer, please.
Dear Client,
In the Present Scenario, for the purpose of leasing your warehouse for a 10-year term to a tenant who is intending to set up a water processing unit, it is necessary to draft a registered lease agreement under the Registration Act, detailing the lease duration, renewal terms, and rent increase details. Further, it is suggested that you include a security deposit clause , late payment penalties, and a termination clause for breaches like rent defaults or unauthorized activities. Further, you may also specify the tenant’s responsibility for routine maintenance, utility bills, operational compliance, and restoration of the premises upon lease termination. However, it is necessary that you safeguard yourself against liabilities through an indemnity clause, requiring the tenant to insure their operations and adhere to the applicable environmental and industrial laws. Further, for early termination, you may allow the party to terminate with certain months’ notice, and also include a force majeure clause for unforeseen events.
Hope you find this answer beneficial for resolving the dispute.
A 10 years registered lease agreement with several conditions for termination, breach, and various other issues related to lease agreement are to be included in the lease agreement. The conditions are exhaustive hence better get the lease agreement drafted by an experienced lawyer in the local.
