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LEASE-CUM-SALE AGREEMENT

LEASE-CUM-SALE AGREEMENT
This Deed of Lease-cum-Sale Agreement executed at Pondicherry on this the _____ day of ________________ 2001 by PONDICHERRY HOUSING BOARD, a Body Corporate created by the Pondicherry Housing Board Act, 1973 (No.7 of 1974) (hereinafter referred to as the Act), having its office at Housing Board building in Anna Nagar, Nellithope, Pondicherry, rep. by its Secretary, Thiru__________________ S/o ______________________ having his office at the above address under the authority granted to him by the said Board by its resolution dated ______________ (hereinafter referred to as the LESSOR, which expression shall, wherever the context so admits, mean and include the said Board, its successors and assigns and the said Secretary, his successors in office and assigns) of the ONE PART;
UNTO AND IN FAVOUR OF Thiru ________________ S/o _____________ aged about _______ years, residing at ________________________________ (hereinafter referred as the LESSEE, which expression shall, wherever the context so admits, mean and include his heirs, executors, administrators, legal representatives and assigns);
WITNESSETH:
WHEREAS the LESSOR BOARD has sponsored a housing scheme for construction of MIG flats at Lawspet in the land morefully described in the Schedule-I hereunder and constructed ________ number of flats in the said Schedule-I land;
AND WHEREAS the lessee has been allotted a flat in _______ floor, which is morefully described in the Schedule-II hereunder;
AND WHEREAS the Board worked out provisionally the cost of _____ undivided interest in the land, the flat and _____ undivided interest in the common areas and facilities specified in Schedule-III at Rs.___________ and the final cost is to be arrived at in due course; which final cost the lessee has agreed to pay as and when demand is made by the Board;
AND WHEREAS the Lessee herein has offered to pay the aforesaid provisional or as the case may be the final cost of the Schedule-I land, Schedule-II flat and Schedule- III common areas and facilities in monthly installments by way of rent and ultimately exercise option to purchase the said land, flat and common areas and facilities and the LESSOR has agreed to the same;
AND WHEREAS the parties have decided to reduce the terms of the Lease-cum- Sale Agreement as contemplated above to writing;

NOW THIS DEED OF LEASE HEREBY WITNESSES
1. Demise:- That in consideration of the payment of Rs.________/- as premium made by the lessee to the lessor (the receipt whereby the lessor hereby acknowledges) and in consideration of the sum of Rs.______/- payable by the lessee to the lessor every month in advance on or before 10th day of each month and in consideration of the conditions relating to the exercise of option to purchase and other terms and conditions mentioned herein-below and for the purpose of acquiring ownership by the lessee on performance of such terms and conditions, the said lessor hereby conveys by way of lease the __________ undivided share in the first scheduled land, the flat No.___ in ____ floor, Block ___ morefully described in the schedule-II in entirety with _____________ undivided interest in common places and facilities detailed and described in Schedule-III hereunder together with drains, passages, light, liberties, rights, privileges, easements, water and electricity service connections, policies and whatsoever attached to the Schedule-I land and Schedule-II premises or any part thereof belonging or in any where appertaining or usually held or occupied therewith and all the estate, right, title, interest and property, claim and demand whatsoever at law and in equity (hereinafter referred to altogether as demised premises), the Plan whereof has been attached hereto, unto the said lessee, to hold the same for the use of the said lessee, his heirs and successors in accordance with the terms of this deed.
2. Rent:- The rent reserved for the demised premises is only provisional and the lessor may at his sole discretion determine or increase the rent and service charges in the event of the purchase price being determined finally under Clause infra and the installment and service charges, if any, so fixed under this clause shall be deemed to have become payable from the date of this indenture and any difference between the provisional rent already paid by the lessee and the amounts payable as rents and service charges under this clause shall be paid on demand by the lessee to the lessor and if the payment of provisional rents is in excess of the rent and service charges finally fixed, the excess will be adjusted in the final installment and service charges payable after fixation thereof.
3. Option:- On payment of the rent reserved under the foregoing clause upto an amount after providing for interest at the rate of _____% per annum equal to such price as the lessor may at any time in its sole discretion fix at which time the lessor is entitled to consider whether the price of the land acquired under the Land Acquisition Act has become fixed by a conclusive adjudication thereon and also the cost of construction after finalisation of accounts, which decision of the lessor is final and binding on the lessee and on compliance with the terms and conditions of this deed the lessee shall be entitled to acquire ownership of the demised premises on payment of a sum of Rs.______/- to the lessor as a consideration for the exercise of the said option, on the receipt of which the said lessee shall be deemed to become the full owner of the property demised and the lessor shall be bound to convey, transfer and sell in consideration of the receipt of the premium and the rent paid, as well as the amount received in respect of the option exercised by the lessee, and in consideration of the agreement to transfer, the ownership of the demised premises, pursuant to this deed, unto the said lessee at his expense by way of sale deed, all rights, title and interest heretofore

vested in the lessor, with all rights of easements of lights, air and passage or of any other kind and of licences or privileges attached to the ownership and possession of the demised premises and cause the said deed to be registered at the expenses and instance of the said lessee hereinafter becoming the owner of the demised premises. The sale-deed shall contain the usual clauses relating to indemnity for and guarantee of title and of quiet enjoyment and that the property being free from encumbrance of all kinds whatsoever.
3.1 In the event of the Lessee paying the tentative cost of the land and flat within the period of this Lease, the Lessor will execute the sale deed in respect of the schedule mentioned flat in his/her favour only after the expiry of a period of FIVE years (from the date of possession) or after the final cost of the land is paid, whichever is later and subject to the condition that the lessee is a member of the respective Co-operative Housing Society or Association and such Co-operative Society or Association should take over the entire maintenance and other common amenities enjoyed by the Lessee.
3.2 In case the Lessee dies after the flat is handed over to him/her and after paying the monthly installments and other dues regularly to the Pondicherry Housing Board, the lessor may in its option, permit the transfer of the Benefit under this Scheme in favour of the legal heir, after obtaining an undertaking in writing from him/her that he/she will not, save as hereinafter provided, transfer the benefit under the scheme or otherwise to any person other than the Board or to Co-operative Housing Society.
3.3 The Lessor offers the flat as it is under scheme and it is the express condition of this agreement that the lessee has agreed to take the flat as it is with full and definite knowledge of the nature and condition of the construction of and accommodation and amenities provided in the flat and also of the building of which the flat forms a part. The occupation of the flat by the Lessee will be with full knowledge of its nature of construction and its condition. Neither the lessee nor any other person occupying the said flat or claiming through him/her any right shall have any claim for compensation in any manner whatsoever from the lessor for defects in construction structural or otherwise.
4. Lessee's covenants:- The lessee shall not be entitled during the currency of the lease to charge, mortgage or otherwise encumber the demised premises in any manner whatsoever nor shall be deposit any document of title, relating to the demised premises for the purpose of securing any loan, or charging the demised premises or any part thereof as a security for the performance of any obligation.
4.1 The lessee shall be bound to pay the rent reserved on or before the dates fixed therefor to the lessor who shall not be entitled to forfeit the lease hereby granted to the lessee unless rent for more than two months is in arrears or accrues due from the lessee, in which event the lessor shall prior to such forfeiture notify its intention to do so in a written notice served or delivered to the lessee allowing the lessee one month to pay such arrears or other dues to the lessor without prejudice to powers conferred under the Act to enforce recovery of the dues as arrear of land revenue under Sec.85 of the Act and enforce eviction and other remedies as available under the Act.

4.2 The Lessor or any authorised representative or employee of the lessor duly authorised by the Chairman in that behalf shall be entitled at all reasonable times to enter upon the Schedule-II flat and to inspect the same from time to time and also to carry out such additions and alterations of work or works on the premises as may be necessary on the interest of the upkeep of structures and general management until such time a Co- operative Society is formed by the allottees of this scheme or on the failure of the Lessee or the Co-operative Society in not maintaining the property in good and tenatable condition.
4.3 If the Lessee fails to carry out any repairs to the Schedule-II mentioned flat, which in the opinion of the Lessor are necessary, or if the Lessee fails to pay any taxes or other dues, which under the terms of this Indenture the Lessee is bound to pay, the lessor may carry out such repairs or make such payments on behalf of the lessee and recover the amount so incurred or paid from the Lessee. Such repairs shall be effected only after a notice in writing is given to the Lessee by the Lessor and on the Lessee committing default for one week in complying with such notice.
4.4 The lessee shall pay interest at 15.50% per annum to the lessor on any payments made on behalf of the lessee by the Lessor and which, under the terms of, this indenture the lessee is bound to pay and also on any arrears of rent and service charges which might be due and outstanding by the lessee without prejudice to other remedies open to the lessor.
4.5 The lessee shall not make any additions or alterations to the Schedule-II mentioned flat.
4.6 The Lessee shall not use the Schedule-II mentioned flat directly or indirectly for any purposes except for the purpose of his/her own residence.
5. Ratesandtaxes:- (1) The lessee shall pay all rates, taxes and cesses which may be levied or payable by virtue of the possession or ownership of the said premises eventhough the same be payable in the first instance by the lessor but in the event of the forfeiture of this lease or in the event of the lessee failing to exercise his option to purchase the house or in the event of the lessee vacating the premises prior to the expiry of ________ years mentioned in the lease or in the event of the lessee abandoning the said house or informing the lessor of his intention not to purchase the said house, any payment made by the lessee in respect of any tax, cess or charge, levied by any authority, local, State or Central, which under law for the time being in force was originally payable by the landlord, shall be accounted for to the lessee at the time of the determination of the lease and any sum so paid by the lessee which may be in excess of any dues of the lessor shall be paid to the lessee at the termination of the lease.
(2) The lessee shall pay all charges of electricity/water for the flat direct to the departments concerned.
6. Sub-letting:- The lessee shall not be entitled to sublet or assign his interest in the said lease except with the previous permission in writing of the lessor

which the lessor shall not be entitled to withhold without any reasonable cause provided however such sub-lessee shall be recognised for the limited purposes of the occupation of the flat but without prejudice to the other terms and conditions of this lease binding on the lessee to the lessor or assignee enters into a covenant with the lessor to bind himself to perform the terms and conditions of this lease, such sub-lessee or the assignee, if any, shall be entitled to exercise the same rights, privileges and authority as were exercisable by the said lessee, except the term relating to further sub-lease or assignment i.e. the sub- lessee or assignee shall not be entitled to further sub-let or assign his interest.
7. Repair:- The lessee shall keep the property in tenantable repair and in case of any breakage or other injury caused to the premises, the same shall be repaired at the expense of the lessee.
8. Insurance:- The lessee shall cause the demised premises to be insured in the name of the lessor and pay the premium therefor on the due dates respectively in respect thereof and deliver the receipt of the payment of the premia to the lessor from time to time, failing which the lessor shall be entitled to pay the same or insure the demised premises at the expense of the lessee and debit the account of the lessee with such payment which shall be deemed to be arrears of the rent due from the lessee to the lessor payable by the lessee within three months of the date on which the lessee is so informed by the lessor.
9. Destruction by vis major:- In case however of destruction by fire or earthquake or material demolition thereof, whether by act of nature or otherwise of the demised premises, the lessor shall be bound to re-build, re-erect or effect such major repairs itself within three months of such destruction or injury and recoup itself from the insurance money received from the insurer, if possible.
10. Renunciation of tenancy:- The lessee shall be entitled at any time to vacate the demised premises and deliver the possession thereof to the lessor after giving one month's notice to the lessor on the expiry of which and delivery of possession to the lessor of the said premises, the lessee shall no longer be responsible to perform the terms of this deed of lease or to pay any rent in respect thereof.
11. Arrears:- (1) The lessee shall be deemed to have forfeited all payments made by him to the lessor in respect of the premia and the rent paid in lieu of his occupation of the demised premises as lessee under this deed in the events contemplated in Clause 5 & Clause 10 of this deed and before the exercise of option to purchase, but the lessee shall be entitled in that event to recover or require adjustment against any arrears due from him the sum or sums paid by him in respect of any taxes, rates or other charges aforementioned, which were under the law for the time being in force payable by the lessor and had in fact been paid by the lessee.
(2) The lessee shall be liable to pay interest at ______% per annum on any defaulted amounts payable under these presents.

12. Other conditions:-
12.1. 12.2.
12.3.
12.4.
The lease under these presents shall be further subject to the conditions stipulated in Schedule-IV hereunder.
If the lessee commits a breach of any of the terms and conditions of this indenture, the Lessor shall be entitled but shall not be bound to determine the lease and the agreement for sale without prejudice to the right of the Lessor to recover from the lessee any loss, which the Lessor might sustain consequence on the breach of contract committed by the lessee.
The lessor shall be entitled in addition to its right to determine the lease-cum-sale agreement in the event of breach by the lessee of any of the conditions herein contained to recover from the lessee any loss which the lessor might sustain consequent of such breach.
The lessor may but shall not be bound on the determination of this indenture for any breach thereof on the part of the lessee, sell the demised premises to any other person by private sale or by public auction at the option of the lessor on such terms and conditions as the Chairman of the lessor deems fit and the lessee will be liable to pay in addition to any amount payable as above mentioned, the difference between the price of the flat herein stipulated by the Lessor and the net price, at which the flat may be sold. If the flat is sold at a higher price, the lessee shall not be entitled to the profits.
The lessor have a lien on all amounts paid by the Lessee towards the purchase price of the demised premises, for all amount payable to the lessor under this indenture and for any loss which the lessor may sustain as a result of any breach by the Lessee of the terms and conditions of this indenture and the lessor shall be entitled to adjust any such amounts paid by the Lessee against such loss and the balance along after such adjustment will be refundable to the lessee.
It is specifically agreed between both the parties that if any structural defect develops within two years in the foundation or in the super-structure from the date of allotment, the lessor will rectify the same at its cost. If such defect develops after the above said periods, it is for the lessee to get the defect rectified at his costs.
It is also agreed between both the parties that the lessor would maintain the demised premises till the maintenance is handed over to the Association and that once the maintenance is handed over by
12.5.
12.6.
12.7.

the Lessor, it should be the responsibility of the Association to look-after the demised premises as well.
It is expressly agreed between both the parties hereto that the Lessee shall pay the lessor towards service and maintenance charges a sum of Rs.________ as the lessor undertakes to maintain the common areas and facilities for a period of six months commencing on from the date on which the flat is ready for occupation as notified to the allottees till maintenance of flats is handed over to the Association, whichever is earlier.
The maintenance by the Board will comprise of engagement of security through private
security agencies. The maintenance of external water supply and drainage will be done by the Board upto a maximum period of 6 months from the date of allotment. Thereafter it is the responsibility of the local authority to maintain these amenities and on failure, the allottees' association shall take over the maintenance of these amenities. The Board shall hand over spaces reserved for park and playground to the concerned local authority within 6 months from the date on which the flats were ready for occupation as notified to the allottees. The common area maintenance will be carried out through private contractors for a specified period of 6 months and thereafter the association shall look- after the common area maintenance. In case of flats remaining idle pending allotment, the Board will become a member of the association and pay for its share of the maintenance. Maintenance cost are to be borne pro-rata flat-wise irrespective of the size of the flat.
12.9. During the Lease-cum-Sale period the flat remains the property of the Lessor who shall be entitled to have a name plate kept fixed on each of the said flats or on the building on which it forms part marking the same as its property or to indicate the same in such other manner as it deems fit.
12.10. In the event of the lessor becoming entitled to retake possession of the schedule mentioned flat, it shall be lawful for the lessor by its authorised agent or agents to enter into and open the Schedule-II mentioned flat or any portion of it which will be in possession and occupation of the Lessee or any other person not specifically named herein, for the purpose of retaking possession of the said flat and for that purpose (if necessary) to break open all locks, gates and doors whether exterior or interior without being liable to the lessee for trespass or otherwise and the lessor shall be deemed to be hereby appointed as the agent of the Lessee for the said purpose. It is expressly understood and agreed between the parties herein that the lessor shall be entitled to proceed against the lessee in case of his/her default for recovery of arrears of amount due and payable under this indenture and compensation if any, as if it is an arrears of Land Revenue under the provisions of the Act.
12.11. In all matters of doubt concerning and in respect of this indenture, the decisions of the chairman of the Lessor shall be final and binding on the Lessee. Any cost incurred by the Lessor with regard to the construction of this agreement or any litigation or correspondence over it shall be borne or paid by the Lessee seeking the construction or proceeding in litigation or carrying on correspondence.
12.12. The Lessee shall be bound by the terms and conditions not provided for in this agreement contemplated in the Application form and the rules and regulations prescribed in the Prospectus of this scheme and the provisions under the Act which will form part and parcel of this Indenture. Further, the Lessee shall also be bound by the directions being given by the Chairman of the lessor Board from time to time in the interest of the upkeep of the buildings and general management.
SCHEDULE - I Description of land

Registration District
Registration Sub-District Municipal/Commune Panchayat limit Revenue village : Local Village : Survey Nos. :
Total extent : Boundaries : Extent of undivided interest leased :
:
:
:
C.No.
: R.S.No.

 

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LEASE-CUM-SALE AGREEMENT