Guide for Expire Rental Agreement

Your lease term has come to an end. What is going to happen now? So, let’s see what happens when the lease expires and what the consequences are.

Guide for Expire Rental Agreement

Lease agreements can be canceled at any time after they expire, according to the Transfer of Property Act of 1882 (TPA). As a result, you must be aware of the consequences of a lease expiring due to the passage of time, especially when choosing between a lease ‘extension, “renewal,’ or ‘hold over.’

 

– Renewal of Rental Agreement

Renewal of a lease occurs when a pre-existing lease, which usually includes a renewal provision, expires. Aside from that, rent agreement renewal is a landlord’s grant of a ‘new’ lease.

When renewing a lease, it’s critical to make sure that the original Lease Deed isn’t automatically renewed for another period after the initial lease term expires. As a result, you’ll need to re-execute the lease deed and double-check that it’s properly stamped and registered.

An original Lease Deed contains renewal clauses. You must renew the lease under such a clause; whether or not you are eligible for additional renewals is contingent on the facts and circumstances. To successfully restore a lease, you must do so within the original contract’s timeframe.

Furthermore, if the landlord fails to execute and register the ‘fresh’ grant of lease for the new lease term, you can sue for specific performance of the renewal clause.

 


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– Lease extension

Extension clauses allow you to extend a lease on the same terms and conditions as the original lease, which usually means paying more rent and putting down a larger security deposit. In contrast to a Lease Deed with a renewal clause, you won’t have to worry about the initial lease period expiring – so you won’t have to worry about it terminating when it does.

Because a renewal Lease Deed is treated separately from the original lease, there is no stamp duty to pay on the two contracts. In order for an extension clause to be effective, stamp duty must first be paid, which is calculated based on the total lease term.

 

– Possession of property

To extend the lease period beyond the initial term, landlords and tenants rely on ‘renewal’ or ‘extension’ clauses. You and your landlord, on the other hand, can make a new lease without a written contract under an implied agreement. After an initial lease has ended, a tenant can keep possession of the property, which is known as holding over the property.

Maintaining possession of a property, on the other hand, does not automatically entitle the landlord and tenant to a new lease or require them to enter into a bilateral agreement. If the parties decide to keep the tenancy on the same terms and conditions as their previous lease, this will be considered a new agreement.

As a result, some of the consequences you may face when your lease expires are listed below, and you must make a decision after the lease expires on a case-by-case basis.

 


 

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Disclaimer: The views of this expressed above are for informational purposes only based on the industry reports & related news stories. Navimumbaihouses.com does not guarantee the accuracy of this article, completeness, or reliability of the information & shall not be held responsible for any action taken based on the published information.
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