When a lease expires, one must act promptly and clearly. So, what if lease agreement is expired? Under the Transfer of Property Act 1882, both landlords and tenants may terminate the lease anytime after its expiration yet the next steps depend on whether to opt for renewal, extension, or holding over.
What if Lease Agreement is Expired in India?
Renewal means creating a brand new lease even though it's related to the previous one. If the original lease includes a renewal clause, this option allows a tenant to continue occupancy under a freshly executed lease.
To do this properly, both parties must sign a new deed, ensure proper stamping, and register it thus legally safeguarding the agreement. If the landlord refuses without valid reason, a tenant might even pursue specific performance to enforce the renewal clause, per the Act.
Alternatively, an extension clause if present lets the tenant continue on the same terms (though often with adjusted rent or deposit) without drafting a new lease. In this case, stamp duty is calculated based on the entire lease period, and an independent lease deed may not be required.
When neither renewal nor extension is arranged, the tenant may hold over i.e., remain in the property by continuing occupancy, sometimes with rent, based on an implied agreement. Even without a written contract, if both parties act as before, a new tenancy is assumed.
Yet this is riskier since it's not formalised, and neither party is bound by the previous lease’s legal strength. Therefore, once a lease expires, ideally one should review the lease terms, confirm if renewal or extension provisions exist, and act accordingly signing a new lease or arranging an extension.
If none apply, avoid remaining on the property ambiguously. Instead, negotiate formally or vacate to prevent legal complications and ensure clarity between both parties.
Get Your Lease Agreement Renewed/Drafted by Senior Advocates at NoBroker
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Hi,
If the lease agreement has expired, there are a few options to consider.
First, you can choose to renew the lease with the landlord if both parties are willing. This involves negotiating new terms and signing a new lease agreement.
Alternatively, you can explore the possibility of entering into a month-to-month arrangement, which provides flexibility without a long-term commitment.
If you decide not to renew or go month-to-month, you will need to vacate the property by the agreed-upon date and follow any move-out procedures outlined in the lease. It's essential to communicate with the landlord and follow local laws and regulations regarding lease termination.
Get your rent agreement drafted and delivered in a hassle-free manner without visiting government offices, here.
If the lease agreement gets expired, what to do?
Sandeep
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2 Year
2023-06-02T09:44:18+00:00 2024-11-25T11:40:44+00:00Comment
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