Lease, License and Lease Financing

Agreement for Building Lease

This Agreement is made at ....... this ....... day of ....... between Mr. A.. . .
residing at ....... hereinafter referred to as 'The Lessor' of the One Part and
Mr. B .... residing at ....... hereinafter referred to as The Lessee' of the
Other Part;
Whereas the Lessor is absolutely seized and possessed of a vacant piece of
land situated at ....... and more particularly described in the Schedule
hereunder written.
And Whereas the Lessor Is entitled to hold the said land being within the
ceiling limit.
And Whereas the Lessee has requested the Lessor to give the said piece of
land on a long lease to enable the Lessee to construct a building partly for
his own residence and partly for letting out the same.
And Whereas the Lessor has agreed to grant a lease of the said plot of land
to the Lessee on the following terms and conditions.
Now it is agreed by and between the parties hereto as follows:
1. The Lessor agrees to demise and the Lessee agrees to take on lease
the said piece of vacant land more particularly described in the Schedule
hereunder written for a term of 99 years from the date of the Deed of
Lease to be executed as hereinafter mentioned at the yearly rent of
Rs. ........ and subject to the terms, conditions and covenants hereinafter
contained.
2. The Lessor shall make out a marketable title to the said land free
from any encumbrances and reasonable doubt.
3. The Lessor shall produce the documents of title to the Lessee or his
Advocate for inspection and investigation of title to the said land. within
eight days from the date hereof.
4. The Lessor will allow the Lessee to enter upon the said land, after he
Is satisfied with the title of the Lessor for the purpose of constructing a
building thereon as hereinafter provided.
5. The Lessee agrees and covenants that -
a. He will enter upon the said piece of land for construction of a
building only as a licensee until the building is constructed and the Deed
of Lease is executed in his favour and till then he "I have no right as a
tenant or lessee to the said land.
b. The Lessee will pay all the municipal taxes in respect of the said plot
of land and the building to be constructed thereon if any payable until
completion of the building and execution of the Deed of Lease.
c. The Lessee shall after entering upon the said land as aforesaid
commence and complete a building thereon as per plans to be sanctioned
by the ....... Municipal Corporation.
d. The Lessee will get the plans of the Proposed building Prepared by
his architect for being submitted to the Municipal Corporation. The
Building shall consist of a ground and ....... upper floors and the total built
up area will not exceed the F.S.I. available. The construction cost of the
said building will not be less than Rs ........ and the Lessee shall use quality
building material and specifications on that basis.
e. The Lessee shall not construct any work which will be unauthorised
or against the Municipal building rules and regulations.
f. The Lessee shall do the digging work for foundation to the extent
necessary and shall not remove and dispose of any earth or gravel from the
said land.
g. The Lessee shall not also bring any unnecessary material on the said
land.
h. During construction of the building the lessee shall have the property
insured against fire and accident.
i. The Lessee shall on completion of the building obtain and produce
for the Lessee's inspection the completion certificate of the Municipal
Corporation.
j. The building will be constructed at the costs of the Lessee including
the fees payable to architects, Surveyors, Engineers, labours etc.
k. The Lessee shall indemnify and keep indemnified the Lessor, against
all losses, costs, charges and expenses that the Lessor may suffer or incur
due to any claim from any person regarding the said construction or due to
any accident or due to breach of any rule and regulation Of the Municipal
Corporation or Govt.
l. During construction the Lessee shall take precaution to see that no
nuisance or annoyance is caused to the adjoining owners or Occupiers of
other properties
1.
2.
3.
4.
5.
6. On the completion of the building as aforesaid and the Lessee
obtaining the completion certificate, the Lessor shall execute a deed of
lease of the said plot of land with the building thereon for a period of 99
years from the date of the lease at the yearly rent of Rs ....... The Deed of
Lease will be In the form which has been approved by the parties hereto
and a copy thereof is hereto annexed and marked 'A' for Identification.
7. For the use and occupation of the said land for construction the
Lessee shall pay to the Lessor, a lumpsum of Rs .......... before the
execution of the Lease.
8. The said building will be constructed and completed within a period
of one year from the date hereof provided that, if the work is held up or
delayed for any reason beyond the control of the Lessee, the said period
shall be extended for such further period as may be expected to be required
for completion of the building but not exceeding .... months.
9. If the building is not completed within the said period, the Lessor
shall have the option to cancel this agreement by one month's prior notice
to the lessee and on the cancellation of this agreement the Lessee shall
remove all work of construction and hand over vacant possession of the
said plot to the Lessor within one month from the date of cancellation
unless the Lessor agrees to take over and purchase the construction work
and building material at the cost that may be agreed upon between the
parties.
10. All the costs including stamp duty and registration charges of and
Incidental to the Deed of Lease will be borne and paid by the Lessee. The
fees of the Lessor's Advocate will be paid by the Lessor.
11. The Deed of Lease will be executed in duplicate and one original
copy will remain with the Lessee and the other will remain with the
Lessor.
12. In the event of any dispute arising between the parties hereto in
respect of this agreement the same will be referred to arbitration of a
common arbitrator If agreed upon, otherwise to two arbitrators one to be
appointed by each party and the arbitration will be governed by the
Arbitration & Conciliation Act, 1996.
The Schedule Above Referred to
IN WITNESS WHEREOF THE Parties have put their respective hands the
day and year first hereinabove written
Signed and delivered by the withinnamed Lessor .............
in the presence of ............
Signed and delivered by the within-named Lessee ..............
in the presence of ................