Legally Speaking: All You Need To Know About A Lease Deed

 All You Need To Know About A Lease Deed

Leasing out your property can earn you continuous income for years. Here’s why a lease deed is important and what it means for both landlords and tenants

Owning a property is a matter of pride. And if the property owner can further earn an income from it, it becomes a lucrative investment. One of the best ways to earn income through your property is by leasing it out to tenants.

What does a 'Lease' mean?

A ‘lease’ is defined under Section 105 of the Transfer of Property Act, 1882. It is a legal contract that specifies the exact terms under which a party agrees to rent a property owned by another party.  Here, the lease guarantees the tenant or lessee the use of the property. According to the terms in a lease, the tenant is granted exclusive possession of a property for a period of time specified in the contract. During the lease tenure, it is the lessee’s responsibility to take care of the property.

The lease deed

A lease deed is the contract signed between the property owner and the tenant for the use of the specific property on a lease rental basis. A lease contract is typically executed for a longer tenure, often exceeding a year or more. In a lease deed, the lessee ‘buys’ the lease rights to the lessor’s property for using the said property. A lease deed, therefore, contains all the important official information regarding the terms and conditions, the financial aspects such as the rent amount and deposit, sub-letting clause, renewal period, etc.

Conditions of a lease deed

For a lease deed to qualify as a legal instrument, it has to fulfil certain conditions which include the following:

• The landlord (lessor) has to transfer the right to use the property being leased out to the tenant (lessee)

• The landlord has to receive a monthly rent in exchange for transferring the right to make use of the property to the tenant

• Both parties can enter into an agreement where the tenant could pay a share of crops, service or any other thing of value’ to the landlord besides cash payment

Contents of a lease deed 

A typical lease deed must contain the following details to qualify as a legal document:

• Property description: This includes the type of property/structure, the area, location, address, furniture, and fittings, etc.
• Lease period: The specific tenure of the lease agreement must be mentioned. It can range from 12 months to more
• Lock-in period: This is the minimum period for which both parties should be in agreement about; they cannot terminate the agreement during the lock-in period
• Rent amount: The monthly/quarterly/ annual rent amount and the date on which it has to be paid
• Security deposit: The refundable deposit amount which the landlord will hold as security. The refund process should also be outlined
• Rent escalation: If both parties agree for an increase in the rent or want to keep it the same
• Terms of usage: The conditions for the use of the property must be detailed. These can include the tenant’s responsibility to maintain it, the maintenance fee, if any, sub-letting of the property by the tenant to another party, etc.
• Notice period: The lease agreement should contain the period of notice each party needs to give to end the agreement
• Termination: The reasons for which the lease agreement can be terminated must be mentioned. This can include the use of the property for any illegal acts, failure to pay rent on due date, tenant creating nuisance, etc.
• Dispute resolution mechanism: Description of the manner in which any legal dispute between the landlord and tenant arising out of breach of the lease deed will be dealt with, such as Alternative Dispute Redressal (ADR) processes like mediation or arbitration, which court will have the jurisdiction, etc.

Lease deed registration

The tenant leasing out the property has to pay the lease deed registration and stamp duty fees. In some cases, this is split equally between the landlord and tenant. Both of these payments can be done online in Maharashtra through the official portal.

Documents for submission

In order to register the lease deed, the following documents are required to be uploaded:

• The rental agreement printed on stamp paper and signed by the landlord, tenant, and two witnesses
• Property documents of the property to be leased out such as a tax receipt
• The original proof of ownership of the property from the landlord
• Address proof copy of the landlord, the tenant, and the witnesses, such as bank passbook, passport, etc. While a lease deed is vital for both residential and commercial properties, it can be more detailed if it is a corporate lease. A qualified advocate can draft a customised lease deed as agreed upon by the landlord and the tenant.

கட்டடங்களில் பால்கனி தோட்டம் அமைப்பதில் கவனிக்க வேண்டிய விஷயங்கள்!

 கட்டடங்களில் பால்கனி தோட்டம் அமைப்பதில் கவனிக்க வேண்டிய விஷயங்கள்!

தனி வீடுகளில் விருப்பப்படி தோட்டம் அமைக்க இடவசதி இருக்கும். ஆனால், அடுக்குமாடி குடியிருப்புகளில் இத்தகைய வசதி இருப்பதில்லை.

இதனால், பெரும்பாலான குடியிருப்புகளில் பால்கனி மற்றும் மொட்டை மாடி பகுதிகளில் தோட்டம் அமைக்கப்படுகிறது.  இவ்வாறு கிடைக்கும் இடத்தை பயன்படுத்தி தோட்டம் அமைப்பது நல்ல நடைமுறை தான்.

இருப்பினும், நடைமுறையில் இதனால் சில பிரச்னைகளும் ஏற்படுகின்றன.  பொதுவாக பால்கனி பகுதிகள், கட்டடத்தின் இருந்து வெளிப்புறமாக நீட்டி அமைக்கப்பட்ட ஸ்லாப்களை நம்பியே இருக்கும்.

இதற்கான கட்டுமானம் எப்படி மேற்கொள்ளப்படுகிறதுஎன்பதை ஆரம்பத்தில் இருதே கவனிக்க வேண்டும்.  கட்டடத்தின் தளம் அமைக்கப்படும் அளவிலேயே பால்கனி பகுதிக்கான ஸ்லாப் இருப்பதை உறுதி செய்ய வேண்டும்.

பொதுவாக பல இடங்களில் தளம் அமைக்கப்படும் போதே பால்கனிக்கான ஸ்லாப்கள் அமைக்கப்படுவதில்லை.  தள பணி முடிந்த பின் தான் பால்கனிக்கான ஸ்லாப்கள் அமைக்கப்படுகின்றன.

வெளிப்புற தோற்றத்துக்கு பால்கனி கட்டடத்துடன் இணைந்து காணப்பட்டாலும், உட்புறத்தில் அது புதிதாக இணைக்கப்பட்டதாகவே காட்சியளிக்கிறது.  இதனால் என்ன ஆகிவிடும் என்றுபலரும் அலட்சியமாக இருக்கின்றனர்.

கட்டடத்தின் தளம் அளவுக்கு பால்கனியும் உறுதியாகஇருக்கும் என்று நினைத்து அதில் தோட்டம் அமைப்பார்கள். இதற்காக, மண் நிரப்பப்பட்ட தொட்டிகள் அதிகமாக அங்கு வைக்கப்படும்.

இது தவிர வேறு சில சுமை பொருட்களும் பால்கனியில் வைக்கப்படுகிறது.  இத்தகைய கூடுதல் சுமைகளை தாங்கும் நிலையில் பால்கனி இருந்தால் பிரச்னை இல்லை.

அதே நேரத்தில், கூடுதல் சுமையை தாங்க முடியாத அளவுக்கு பால்கனி பலவீனமாக இருந்தால், அது விபத்துகளுக்கு வழிவகுத்துவிடும்.  எனவே, உங்கள் வீட்டுக்கான பால்கனி அமைக்கப்படும் போது, அதற்கான ஸ்லாப் தளத்துடன் இணைந்ததாக இருப்பதை உறுதி செய்ய வேண்டும் என்கின்றனர் கட்டுமான வல்லுனர்கள்.

Buying a home for the first time? Don’t forget to claim these benefits

 Buying a home for the first time? Don’t forget to claim these benefits

As a first-time homebuyer, you may qualify for some sweet perks like tax savings, reduced interest rates, and even special discounts from developers. So, keep an eye out  as you might have a chance to save a handsome amount

Purchasing your first home can be pretty overwhelming. But don’t worry, there are a bunch of perks that can make this experience a bit smoother - not to mention easier on your wallet!

Benefits galore:

Under Section 80C, first-time buyers can claim tax benefits of up to Rs 1.5 lakh on the principal repayment of a house loan, but this is applicable only for homes that are completed and owned for at least five years from the date of acquisition; 

Additionally, Sections 80EE and 80EEA provide a tax credit of Rs 50,000 on interest repayment for first-time homebuyers;

You can also get interest deductions of up to Rs two lakh per year under Section 24, provided the home is owned and not rented;

Section 80EEA of the Income Tax Act, 1961, provides an additional deduction on home loan interest for first-time homebuyers of affordable housing. The deduction is limited to a maximum amount of Rs 1.5 lakh per financial year, provided the property value is up to Rs 45 lakh and the loan is sanctioned between specific timeframes. 

“The Real Estate Regulation Act (RERA) ensures transparency and accountability in the real estate sector, thus protecting the interests of buyers by curbing malpractices. The Pradhan Mantri Awas Yojana (PMAY) is aimed at providing “housing for everyone” and benefits first-time home purchasers from lower and middle-income families. The subsidy rates on the principal amount vary based on the buyer’s income, with additional income brackets recently introduced to extend the benefits to a wider segment of the population. Moreover, the housing subsidy GST has been reduced from 12 per cent to eight per cent for residences acquired under PMAY, allowing eligible first-time homeowners to avail of a higher subsidy of up to Rs 2.7 lakh,” informs Pritam Chivukula, vice president, CREDAI-MCHI.

Money matters :

First-time homebuyers can avail of competitive home loan interest rates from top banks and lenders. These rates are generally tailored based on various eligibility criteria. Besides, if you’re a salaried employee, your interest rates could be lowered by 15-20 basis points as compared to those who are self-employed. Akash Pharande, managing director of a real estate firm adds, “Banks occasionally roll out special offers for first-time homebuyers. You might see slight reductions in interest rates or other benefits such as a waiver on processing fees and prepayment charges, among others. However, these offers are usually available during the festive season. So, keep an eye out for these sweet deals.” The interest rates you might end up paying on your home loan depend on several factors which include the size of your loan, the term of the loan, and your credit score. So, keep these factors in mind while planning your finances.

“Bigger loans, longer payback periods, or a weak CIBIL score may attract slightly higher interest rates. Remember, not all banks and financial institutions offer the same rates and terms for their loans. It’s essential to compare offerings from multiple lenders to get the best deal,” says Vickash Choudhary, founder of a real estate firm.

The one mistake that first-time homebuyers often make is that they focus mainly on securing lower interest rates, but they should also consider other terms such as prepayment charges and processing fees while comparing loan offers.

Developers play their part :

Developers often extend special reductions and benefits to attract first-time homebuyers and promote their projects. These benefits can vary depending on the developer’s marketing strategy and the property being offered. Common offers include discounts on the base price of the property, thus making it more affordable for first-time buyers. Some developers may also provide additional incentives such as free furniture or appliances, or free membership to gyms or clubhouses. Additionally, to ease the financial burden on first-time buyers, developers might offer flexible payment plans with staggered payments or lower initial down payment requirements. Developers may offer discounted prices to first-time homebuyers, especially in affordable housing projects. Some developers may waive off additional charges such as floor rise charges, preferred location charges, or clubhouse membership fees to attract first-time buyers. Developers may have tie-ups with specific banks or financial institutions, thus providing special home loan interest rates or processing fee waivers for buyers of their properties. Chivukula cautions, “Prospective homebuyers should thoroughly review all the terms and conditions of such offers before making any decisions to ensure they fully understand the benefits and implications.”

கம்பி கட்டு வேலையில் கவனக்குறைவு ஏற்பட்டால் அது கட்டடத்தை பாதிக்கும்!

 கம்பி கட்டு வேலையில் கவனக்குறைவு ஏற்பட்டால் அது கட்டடத்தை பாதிக்கும்!

புதிதாக கட்டப்படும் கட்டடங்கள் பெரும்பாலும் பிரேம்டு ஸ்ட்ரக்சர் முறையில் கட்டப்படுகிறது.  இவ்வாறு, கட்டுவதில், அஸ்திவார தூண்கள், பீம்கள், மேல் தளம் ஆகியவை அத்தியாவசிய அமைப்புகளாக உள்ளன.

இந்த அமைப்புகளுக்கான கட்டுமான பணியில் சில அடிப்படை விஷயங்களை புரிந்து செயல்பட வேண்டும்.  இக்கட்டுமானங்களின் அளவுகள் என்ன என்பதை ஆரம்ப நிலையிலேயே வரையறுக்க வேண்டும்.

அதாவது, பணி முடியும் நிலையில் என்ன அளவில் இருக்க வேண்டும் என்பதை கணக்கிட்டு அதற்கு ஏற்ற வகையில் செயல்பட வேண்டும்.

குறிப்பாக, கம்பி கூடுகள் அமைக்கும் போது, அவற்றுக்கும், வெளிப்புற தாங்கு பல கைகளுக்கும் இடைப்பட்ட பகுதியின் அளவை துல்லியமாக கணக்கிடுவது அவசியம்.  தூண்கள், பீம்கள் அமைப்பதில் கம்பி கூடுகளுக்கு நடுவிலும், வெளிப்புறத்திலும் கான்கிரீட் கலவை கொட்டப்படும்.  இந்த பகுதிகளின் அளவுகள் எப்படி இருக்க வேண்டும் என்பதை சரியாக கணக்கிட வேண்டும்.

கம்பி கூடுகளுக்கு வெளியில் கான்கிரீட் பரப்பு எப்படி அமைய வேண்டும் என்பதில் கவனமாக இருக்க வேண்டும்.  இதை துல்லியமாக பார்த்து தாங்கு பலகைகளை அமைப்பது அவசியம்.  இதில் கம்பிகளுக்கும், தாங்கு பலகைகளுக்குமான இடைவெளி குறைந்தால், அது கட்டுமானத்தை பாதிக்கும்.  அதே நேரத்தில், இந்த இடைவெளி தேவை இல்லாமல் அதிகமானாலும், சிக்கல் தான்.  இதே போன்று மேல் தளம் அமைப்பதிலும், கம்பி கூடுகள் தாங்கு பலகைகளுக்கு இடைப்பட்ட பகுதியின் அளவை சரியாக பராமரிக்க வேண்டும்.

இதில், கம்பி கூடுதல் தாங்கு பலகைகளை தொடாமல் இருப்பதை உறுதி செய்யுங்கள்.  இந்த இடைவெளியில் கான்கிரீட் கலவை நன்கு பரவ வழி செய்ய வேண்டும்.  மேல் தளம் அமைப்பு பணியின் போது, கான்கிரீட் கலவை பரவலை உறுதி செய்ய நடவடிக்கை எடுக்க வேண்டும்.

குறிப்பாக, கான்கிரீட் கலவை, சரியாக பரவாத நிலையில், அது நீர் கசிவு போன்ற பிரச்னைகளுக்கு வழிவகுக்கும்.  எனவே, தாங்கு பலகைகள் அமைக்கும் போது அதில் மிகுந்த கவனத்துடன் செயல்படுங்கள் என்கின்றனர் கட்டுமான பொறியாளர்கள்.

Make the right choice : Standalone home vs. flat

 Make the right choice : Standalone home vs. flat

In the bustling real estate landscape of Chennai, here is a guide to help you choose between an independent house and apartment

With its diverse real estate landscape offering everything from luxurious villas to modern apartments, prospective homebuyers in Chennai are often confused with a pivotal decision: whether to invest in a standalone home or an apartment. Each option presents its own unique set of advantages and considerations.

Current market scenario

As per Anarock Research, as many as 28,300 units are available for sale in Chennai as of H2 2023. These include all property types such as apartments, villas, plotted developments, etc. Though apartments are the first choice of property seekers, it’s interesting to know that villas as a property type gained much traction during the pandemic. This was also revealed in Anarock’s Consumer Sentiment survey wherein demand for villas went up across cities. Interestingly, villas were popular among buyers in Tier II and III cities. As per the survey, almost 27 per cent of respondents who are looking to buy in Tier-II and III cities chose villas as their first preference. As for the top seven cities, notably the southern cities have a higher demand for villas. For instance, in Hyderabad, almost 19 per cent of respondents preferred to buy villas, in Bengaluru 14 per cent preferred it, while in Chennai, nine per cent of respondents preferred villas.

Apartment or an independent house: What is the ideal choice in Chennai?

Both apartments and villas depreciate over time in terms of value and strength, as compared to the newer buildings. Buying a home in a new building would always be a tad bit more expensive than the resale market. What one thus needs to consider is the purpose of their purchase. Apartments generally come with lesser work in renovations and repair (water connection, electricity, gas line, etc). On the other hand, if buying a villa, along with the utilities, you may also have to take care of either building the structure or renovating the existing one including the desired type of fencing as everyone’s security needs vary. The stress of ensuring there are no trespassers also lies with the owner in the case of a villa. However, your preferences and needs should be the priority before deciding between the two.

Where to buy a house in Chennai?

“In the past, central regions of Chennai like Nungambakkam, Alwarpet, and Mylapore have typically featured standalone homes. As the city expanded, some of these homes were transformed into apartments due to an increase in the number of buyers and evolving consumer preference for gated communities catering to urban lifestyles. This shift has also been supported by the growth of the office sector, with increasing IT/ITeS firms in OMR in South Chennai and buoyant industrial activity in Oragadam-Sriperumbudur and surrounding locations in West Chennai. Thus, over the recent years, South and West Chennai have garnered a dominant share in launches and sales of housing units. Notably, South Chennai now holds around 60 per cent of the city’s housing stock, with prominent zones such as OMR, GST Road, ECR, and neighborhoods such as Velachery and Adyar. This growth has also been fuelled by urban expansion and increased property values in central areas,” informs Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.

What is the best bet for you?

Advantages of apartments:

 Apartments offer convenience and shared amenities. They often come with security features and have maintenance handled by society management. Their central locations provide easy access to various facilities and can be more affordable than houses.

Disadvantages of apartments:

 There are often rules set in place by the building management that can limit how much you can personalize the space. Plus, the resale value of an apartment might not increase quite as quickly as you’re hoping.

Advantages of independent houses:

 Independent houses offer ample space and privacy. They often come with private outdoor areas, giving residents more freedom for gardening and outdoor activities. The resale value can be pretty good, and no shared amenities or restrictive rules usually exist.

Disadvantages of independent houses: 

Apartments come with minimum hassles of maintenance. On the other hand, in an independent home, the owner must go through the hassles of finding plumbers or carpenters, and even take it upon himself to manicure the lawns. Although most of the amenities (pool, and garden) can be built into an individual house, the financial implications are huge. Also, owners have to install CCTV cameras or burglar alarms to monitor the property, which is an additional expense.

– Manju Yagnik, senior vice-president, NAREDCO

 

இன்சூரன்ஸ் வேண்டுமா? - காரை ஆன் செய்யாதீர்கள்! 

வெள்ளத்தில் கார்கள் மூழ்கினால் இன்ஸ்சூரன்ஸ் பெறும் வழிமுறைகள் என்ன? எந்தெந்த காப்பீட்டிற்கு எவ்வளவு சதவிகித தொகை கிடைக்கும்? என்னென்ன தவறுகளை செய்யக்கூடாது? உள்ளிட்ட தகவல்கள்

https://youtu.be/rcbxXUBfeFQ?si=BRKWsv89gxmOqqEo

Have you inspected the property before signing on the dotted line !!

 Have you inspected the property before signing on the dotted line !!

Just visiting the place and pointing out a few cracks aren’t enough. A thorough home inspection is important for a smooth stay

Jayanthi and her husband Kannan recently bought a home in Chennai. During our conversation with them, we asked if they conducted a home inspection before making their big purchase. And their reaction was, “Oh! What’s that? Is it even legal?” On educating them that, though not quite popular yet, it is legal to get a home inspection done before or just after you sign the deal. They said, “We wish we knew that. So far, we haven’t faced any troubles with our new home. But, this seems quite useful and would suggest our friends and family to do the same.”

When you’re out and about exploring the property (for end-use or rent), a broker or sales executive will likely join you. They’ll guide you through the property, and discuss the costs and all, but in this whirlwind, you get a limited chance to properly check out the house yourself.

During a typical site tour, you might notice newly painted walls, yet it’s impossible to inspect the building’s structural quality. You’ll likely see a beautifully maintained home, but the possible presence of leaks or pests won’t be visible. Hence, it’s crucial to make a thorough home inspection your top priority.

Although it is not a popular practice in India, unlike Western countries where it is a regulated industry, there are still a few new-age companies that offer this service. Experts in the sector hope that some government guidelines are formed in India as well to aid homebuyers. “There should also be proper codes and tolerance limits set for the finishing aspects of building construction,” says Venkat, chief business officer of a leading home inspection company.