In the Pagdi system, the tenant becomes a part-owner of the premises and not of the land. The tenant continues to pay rent to the owner as long as he/she is not sub-renting the premises. If the tenant wants to sell the property and a new rental agreement has to be done with the new purchaser or tenant, then the tenant will have to give a percentage (between 30% to 50%) of the gross sale amount to the landlord.
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In a Pagdi system, if the tenant Wants to sell the property and a new rental agreement has to be done with the new purchaser or tenant, my question is when the new tenant wants to sell the place, what is the percentage of profit sharing applicable to the landlord? Is there a set guideline of say 5% on the overall sale amount or can this % be increased to say 20 % or can it be 50% of the overall profit? How does the system work? Is there a set guideline to determine the percentage on sale? Thanks and appreciate your quick response.
Gerry Dlima
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2023-07-17T16:22:04+00:00 2023-07-17T20:37:09+00:00Comment
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