Building Lease Agreement - India

Building Lease Agreement for use in India.

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This kit includes tools and guidelines to assist you in drafting a Building Lease Agreement.

An Agreement for Building Lease is a contract laying out the terms and conditions for the 'Lease' of a vacant plot of land to be used solely for the purpose of erecting a building by the lessee. A lease for such a purpose is granted for a long tenure, such as 99 years. Only after the title is clear and the documents thereof are produced, can the lessee start construction.

This lease deed is only entered upon after the building is constructed with the satisfaction of the lessor and the lessee produces and obtains, upon successful completion of construction, a completion certificate from the Municipal Corporation. Until such a time, the lessee is deemed to have been granted a licence to occupy the plot of land.

Among others, this form includes the following key provisions:
  • Parties to the lease
  • Leased property
  • Title and Title Documents
  • Covenants
  • Deed of Lease
  • Consideration
  • Completion
  • Option to Cancel
  • Arbitration
This attorney-prepared Building Lease Agreement packet contains:
  1. Description and Instructions for Building Lease Agreement
  2. Building Lease Agreement for use in India
Law Compliance: This form is designed for use in India.
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.












Agreement for Building Lease
(India)












This Packet Includes:
   1. General Description and Instructions
   2. Agreement for Building Lease (India)






General Description and Instructions
Agreement for Building Lease
(India)

An Agreement for Building Lease is a contract laying out the terms and conditions for the lease of a vacant plot of land to be used solely for the purpose of erecting a building by the lessee. A lease for such a purpose is granted for a long tenure, such as 99 years. Only after the title is clear and the documents thereof produced can the lessee start construction.

This lease deed is only entered upon after the building is constructed with the satisfaction of the lessor and the lessee produces and obtains, upon successful completion of construction, a completion certificate from the Municipal Corporation. Until such a time, the lessee is deemed to have been granted a license to occupy the plot of land.

During this long tenure, the lessee is required to pay an annual rent and all the national, city, council, state and municipal taxes for the land and the building to be constructed.  However, to use and occupy the building construction, the lessee shall pay the lessor a one time payment before the execution of the lease deed.

The lessor has an option to cancel this agreement if the building is not constructed within the agreed time period or if the lessee breaches its obligations.

Note: Please seek independent legal and financial advice when signing an Agreement to Lease a Building and ensure all copies of the documents, including the Agreement, are properly read and understood.








DISCLAIMER:

FindLegalForms, Inc. (“FLF”) is not a law firm and does not provide legal advice.  The use of these materials is not a substitute for legal advice. Only a lawyer/advocate/solicitor/barrister can provide legal advice.  A lawyer/solicitor/barrister should be consulted for all serious legal matters.  No Lawyer-Client / Solicitor-Client /Advocate-Client relationship is created by use of these materials.  
THESE MATERIALS ARE PROVIDED “AS-IS.  FLF DOES NOT GIVE ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, SUITABILITY OR COMPLETENESS FOR ANY OF THE MATERIALS FOR YOUR PARTICULAR NEEDS.  THE MATERIALS ARE USED AT YOUR OWN RISK.  IN NO EVENT WILL:  I) FLF, ITS AGENTS, PARTNERS, OR AFFILIATES; OR II) THE PROVIDERS, AUTHORS OR PUBLISHERS OF ITS MATERIALS, BE RESPONSIBLE OR LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATE OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER USED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THESE MATERIALS. 



The use of these materials is subject to the “Terms and Conditions” found at findlegalforms.com.
   AGREEMENT FOR BUILDING LEASE


This Agreement to Lease (Agreement) made and entered into on this the [Day] day of [Month], [Year] at _____________, by and between:

A.   Mr. _______________, an individual aged about [Mention Age], being the son of [Mention Fathers Name] and residing at _________________________________________ hereinafter referred to as the Lessor (which expression shall, where ever the context so requires or admits, mean and include his successors, legal representatives, heirs, administrators and permitted assigns); and

B.   Mr. _______________, an individual aged about [Mention Age], being the son of [Mention Fathers Name] and residing at __________________________________________ hereinafter referred to as the Lessee (which expression shall, where ever the context so requires or admits, mean and include his successors, legal representatives, heirs, administrators and permitted assigns); and

Lessor and Lessee are individually referred to as the Party and jointly as Parties.
WHEREAS the Lessor is the sole and absolute owner in possession of a vacant piece of land situated at ________________________________________________ and more particularly described in the Schedule hereunder;

AND WHEREAS the Lessor is entitled to hold the Scheduled Property being within the ceiling limit according to the law;

AND WHEREAS the vacant piece of land is free of any liens, claims and encumbrances;  

AND WHEREAS the Lessee wants to enter into an agreement with the Lessor to give the Scheduled Property on a long lease to facilitate the Lessee to erect a building partly for his own residence and partly for letting out the same;

AND WHEREAS the Lessor has agreed to enter into a lease of the Scheduled Property to the Lessee on the following terms and conditions.

NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

1. Lease. The Lessor agrees to lease and the Lessee agrees to take on the lease of the piece of vacant land to construct a building on it more fully described in the Schedule hereunder (hereinafter referred to as the Scheduled Property) for a term of no less than 99 years from the date of the Deed of Lease to be executed as hereinafter mentioned at the yearly rent of Rs. ________________________________ (Rupees In words) and subject to the terms, conditions and covenants contained hereunder.

2. Title. The Lessor shall make out a marketable title to the Scheduled Property to construct a building free from any encumbrances and reasonable doubt.

3. Title Documents. The Lessor shall produce the documents of title to the Lessee and his/her/their Advocate for inspection and investigation of title to the Scheduled Property within eight days from the Effective Date.

4. Permission. The Lessor will permit and allow the Lessee to enter upon the Scheduled Property, after he is satisfied with the title of the Lessor for the purpose of constructing a building thereon as hereinafter provided.

5. Covenants. The Lessee agrees and covenants that -

(a) He will enter upon the Scheduled Property 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/she/they consent to not have rights as a tenant or Lessee to the Scheduled Property.

(b) The Lessee will pay all the national, city, council, state and municipal taxes toward the Scheduled Property 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 Scheduled Property to 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/her/their architect to be submitted to the Municipal Corporation. The Building shall consist of a ground and ______ upper floors and the total built up area (TBA) will not exceed the F.S.I. available as stipulated by law. The construction cost of the said building will not be less than Rs _________ (Rupees In words) and the Lessee shall use quality building material and specifications on that basis.

(e) The Lessee shall not construct any unauthorised structures or additions to the main structure that is against the current 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, mud, sand or gravel from the Scheduled Property.

(g) The Lessee shall not also bring any unnecessary material on the Scheduled Property.

(h) During construction of the building the Lessee shall have the property insured against fire, accidents and natural calamities.

(i) The Lessee shall on completion of the construction of the building obtain and produce for the Lessor's inspection the completion certificate of the Municipal Corporation.

(j) The building shall be constructed at the complete cost of the Lessee including but not limited to professional fees payable to Architects, Surveyors, Engineers, and Labour, 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, State or Central Government.

(l) During construction the Lessee shall take precaution to see that no nuisance or annoyance is caused to the owners or occupiers of adjoining properties

6. Deed of Lease. 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 Scheduled Property with the building thereon for a period of 99 years from the date of the lease at the yearly rent of Rs _________ (Rupees In Words). The Deed of Lease will be in the format which has been approved by the parties hereto and a copy thereof is annexed hereunder and marked 'A' for identification.

7. Consideration. For the use and occupation of the Scheduled Property for construction the Lessee shall pay to the Lessor, a one-time-payment of Rs _________ (Rupees In Words) before the execution of the Lease.

8. Completion. The said building will be constructed and completed within a period of one year from the Effective Date (hereinafter referred to as the Period) provided that, if the work is held up or delayed for any reason beyond the control of the Lessee, the 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. Option to Cancel. If the building is not completed within the 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 Scheduled Property 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. Stamp Duty. 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 not to exceed Rs.______________.

11. Counterparts. 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. Force Majeure. The Parties shall be not liable for any failure to perform its obligations where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, hurricane or other natural disaster), war, invasion, act of foreign enemies, hostilities (whether war is declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, blockage, embargo, labour dispute, strike, lockout or interruption or failure of electricity [or telephone service].

13. Either Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated.

14. Severability. If a provision of this Agreement is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect:
(a) The validity or enforceability in that jurisdiction of any other provision of this Agreement; or

(b) the validity or enforceability in other jurisdictions of that or any other provision of this Agreement.

15. Governing law; Arbitration. This Agreement shall be governed, interpreted and construed in accordance with the laws of India.  Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity thereof, shall be finally settled by arbitration in _____________ in accordance with the provisions of the Arbitration and Conciliation Act, 1996 as at present in force. The tribunal shall consist of three (3) arbitrators. Each Party shall appoint one arbitrator and the two arbitrators appointed by the Parties shall appoint the third or presiding arbitrator. If the two arbitrators fail to agree on the appointment of the third arbitrator within thirty days from the date of their appointment, the third arbitrator shall be appointed by the High Court of _____________________. The venue of the arbitration shall be ___________________.

IN WITNESS WHEREOF THE Parties have put their respective hands the day and year first hereinabove written

Lessor


Lessee
Name & Address


Name & Address

Witness 1 Name & Address



Witness 1 Name & Address

Witness 2 Name & Address



Witness 2 Name & Address





SCHEDULE

Details of Property
Number of Pages8
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#33494
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.












Agreement for Building Lease
(India)












This Packet Includes:
   1. General Description and Instructions
   2. Agreement for Building Lease (India)






General Description and Instructions
Agreement for Building Lease
(India)

An Agreement for Building Lease is a contract laying out the terms and conditions for the lease of a vacant plot of land to be used solely for the purpose of erecting a building by the lessee. A lease for such a purpose is granted for a long tenure, such as 99 years. Only after the title is clear and the documents thereof produced can the lessee start construction.

This lease deed is only entered upon after the building is constructed with the satisfaction of the lessor and the lessee produces and obtains, upon successful completion of construction, a completion certificate from the Municipal Corporation. Until such a time, the lessee is deemed to have been granted a license to occupy the plot of land.

During this long tenure, the lessee is required to pay an annual rent and all the national, city, council, state and municipal taxes for the land and the building to be constructed.  However, to use and occupy the building construction, the lessee shall pay the lessor a one time payment before the execution of the lease deed.

The lessor has an option to cancel this agreement if the building is not constructed within the agreed time period or if the lessee breaches its obligations.

Note: Please seek independent legal and financial advice when signing an Agreement to Lease a Building and ensure all copies of the documents, including the Agreement, are properly read and understood.








DISCLAIMER:

FindLegalForms, Inc. (“FLF”) is not a law firm and does not provide legal advice.  The use of these materials is not a substitute for legal advice. Only a lawyer/advocate/solicitor/barrister can provide legal advice.  A lawyer/solicitor/barrister should be consulted for all serious legal matters.  No Lawyer-Client / Solicitor-Client /Advocate-Client relationship is created by use of these materials.  
THESE MATERIALS ARE PROVIDED “AS-IS.  FLF DOES NOT GIVE ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, SUITABILITY OR COMPLETENESS FOR ANY OF THE MATERIALS FOR YOUR PARTICULAR NEEDS.  THE MATERIALS ARE USED AT YOUR OWN RISK.  IN NO EVENT WILL:  I) FLF, ITS AGENTS, PARTNERS, OR AFFILIATES; OR II) THE PROVIDERS, AUTHORS OR PUBLISHERS OF ITS MATERIALS, BE RESPONSIBLE OR LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATE OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER USED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THESE MATERIALS. 



The use of these materials is subject to the “Terms and Conditions” found at findlegalforms.com.
   AGREEMENT FOR BUILDING LEASE


This Agreement to Lease (Agreement) made and entered into on this the [Day] day of [Month], [Year] at _____________, by and between:

A.   Mr. _______________, an individual aged about [Mention Age], being the son of [Mention Fathers Name] and residing at _________________________________________ hereinafter referred to as the Lessor (which expression shall, where ever the context so requires or admits, mean and include his successors, legal representatives, heirs, administrators and permitted assigns); and

B.   Mr. _______________, an individual aged about [Mention Age], being the son of [Mention Fathers Name] and residing at __________________________________________ hereinafter referred to as the Lessee (which expression shall, where ever the context so requires or admits, mean and include his successors, legal representatives, heirs, administrators and permitted assigns); and

Lessor and Lessee are individually referred to as the Party and jointly as Parties.
WHEREAS the Lessor is the sole and absolute owner in possession of a vacant piece of land situated at ________________________________________________ and more particularly described in the Schedule hereunder;

AND WHEREAS the Lessor is entitled to hold the Scheduled Property being within the ceiling limit according to the law;

AND WHEREAS the vacant piece of land is free of any liens, claims and encumbrances;  

AND WHEREAS the Lessee wants to enter into an agreement with the Lessor to give the Scheduled Property on a long lease to facilitate the Lessee to erect a building partly for his own residence and partly for letting out the same;

AND WHEREAS the Lessor has agreed to enter into a lease of the Scheduled Property to the Lessee on the following terms and conditions.

NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

1. Lease. The Lessor agrees to lease and the Lessee agrees to take on the lease of the piece of vacant land to construct a building on it more fully described in the Schedule hereunder (hereinafter referred to as the Scheduled Property) for a term of no less than 99 years from the date of the Deed of Lease to be executed as hereinafter mentioned at the yearly rent of Rs. ________________________________ (Rupees In words) and subject to the terms, conditions and covenants contained hereunder.

2. Title. The Lessor shall make out a marketable title to the Scheduled Property to construct a building free from any encumbrances and reasonable doubt.

3. Title Documents. The Lessor shall produce the documents of title to the Lessee and his/her/their Advocate for inspection and investigation of title to the Scheduled Property within eight days from the Effective Date.

4. Permission. The Lessor will permit and allow the Lessee to enter upon the Scheduled Property, after he is satisfied with the title of the Lessor for the purpose of constructing a building thereon as hereinafter provided.

5. Covenants. The Lessee agrees and covenants that -

(a) He will enter upon the Scheduled Property 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/she/they consent to not have rights as a tenant or Lessee to the Scheduled Property.

(b) The Lessee will pay all the national, city, council, state and municipal taxes toward the Scheduled Property 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 Scheduled Property to 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/her/their architect to be submitted to the Municipal Corporation. The Building shall consist of a ground and ______ upper floors and the total built up area (TBA) will not exceed the F.S.I. available as stipulated by law. The construction cost of the said building will not be less than Rs _________ (Rupees In words) and the Lessee shall use quality building material and specifications on that basis.

(e) The Lessee shall not construct any unauthorised structures or additions to the main structure that is against the current 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, mud, sand or gravel from the Scheduled Property.

(g) The Lessee shall not also bring any unnecessary material on the Scheduled Property.

(h) During construction of the building the Lessee shall have the property insured against fire, accidents and natural calamities.

(i) The Lessee shall on completion of the construction of the building obtain and produce for the Lessor's inspection the completion certificate of the Municipal Corporation.

(j) The building shall be constructed at the complete cost of the Lessee including but not limited to professional fees payable to Architects, Surveyors, Engineers, and Labour, 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, State or Central Government.

(l) During construction the Lessee shall take precaution to see that no nuisance or annoyance is caused to the owners or occupiers of adjoining properties

6. Deed of Lease. 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 Scheduled Property with the building thereon for a period of 99 years from the date of the lease at the yearly rent of Rs _________ (Rupees In Words). The Deed of Lease will be in the format which has been approved by the parties hereto and a copy thereof is annexed hereunder and marked 'A' for identification.

7. Consideration. For the use and occupation of the Scheduled Property for construction the Lessee shall pay to the Lessor, a one-time-payment of Rs _________ (Rupees In Words) before the execution of the Lease.

8. Completion. The said building will be constructed and completed within a period of one year from the Effective Date (hereinafter referred to as the Period) provided that, if the work is held up or delayed for any reason beyond the control of the Lessee, the 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. Option to Cancel. If the building is not completed within the 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 Scheduled Property 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. Stamp Duty. 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 not to exceed Rs.______________.

11. Counterparts. 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. Force Majeure. The Parties shall be not liable for any failure to perform its obligations where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, hurricane or other natural disaster), war, invasion, act of foreign enemies, hostilities (whether war is declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, blockage, embargo, labour dispute, strike, lockout or interruption or failure of electricity [or telephone service].

13. Either Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated.

14. Severability. If a provision of this Agreement is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect:
(a) The validity or enforceability in that jurisdiction of any other provision of this Agreement; or

(b) the validity or enforceability in other jurisdictions of that or any other provision of this Agreement.

15. Governing law; Arbitration. This Agreement shall be governed, interpreted and construed in accordance with the laws of India.  Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity thereof, shall be finally settled by arbitration in _____________ in accordance with the provisions of the Arbitration and Conciliation Act, 1996 as at present in force. The tribunal shall consist of three (3) arbitrators. Each Party shall appoint one arbitrator and the two arbitrators appointed by the Parties shall appoint the third or presiding arbitrator. If the two arbitrators fail to agree on the appointment of the third arbitrator within thirty days from the date of their appointment, the third arbitrator shall be appointed by the High Court of _____________________. The venue of the arbitration shall be ___________________.

IN WITNESS WHEREOF THE Parties have put their respective hands the day and year first hereinabove written

Lessor


Lessee
Name & Address


Name & Address

Witness 1 Name & Address



Witness 1 Name & Address

Witness 2 Name & Address



Witness 2 Name & Address





SCHEDULE

Details of Property

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