Cancellation of registered lease deed is a must while ending the tenancy. Otherwise encumbrance certificate issued by the registration Department will contain the remark of the lease, which is an encumbrance which may lead to unwanted complications. The Kerala Stamp Act article 54. deals about Surrender of lease.
the stamp duty is prescribed as Rupees Two Hundred and Fifty rupees. But the Registration Authorities claim that 2% of entire amount of lease is chargeable as Registration Fees for surrender of lease. This is unwarranted. We had already paid the 2% charges when the agreement was registered. Now we are just cancelling the agreement. There is no monetary transaction taking place, But the authorities are claiming such a huge amount for surrender of lease.
The registration authorities are not claiming for stamp duty for the surrendering part of the lease, but for the entire document amount.
In the case of a lease which the period of lease is over then also the encumbrance is being shown in the encumbrance certificate. Once the lease period is over, the encumbrance is to be removed from the registration department records. The lessee continues in the building on the strength of Rent Control Act as he becomes a statutory tenant and can be evicted only according to the provisions of Rent Control Act is nothing concerned with the Registration Department.
The building Owners should take up the matter with the Sate Government for remedial measures with regard to the registration of lease and cancellation of lease especially in view that all the lease deeds are being made compulsory to be registered.
The main remedy to be made in the registration Rules are
In the case of a lease which the period of lease is over the encumbrance is to be removed from the registration department records.
Apart from the stamp duty of Rupees Two Hundred and Fifty rupees Registration Fees for surrender of lease is to be fixed at a fee of Rs.100.
The Building Owners of Kerala should rise up and have the government take positive steps in this regard.
The content of this article is intended to provide a general guide line to the subject matter. Professional advice should be sought about your specific needs and circumstances.
This deed of LEASE is executed on this the ___th day of [Month], 20__ between [Name of Building Owners] (Aadhar Card No. ______ ) aged ___ years, S/O [Name of father], [House Name], [Address], [Post] P.O., PIN – ________, [District] (which expression shall, unless it be repugnant to the context or meaning thereof, include their respective heirs, executors, administrators and assigns) of the ONE PART} (hereinafter referred to as the LEASER) and [Name of Tenant], (Aadhar Card No. ______ ) S/o [Name of father], [House Name], [Address], [Post] P.O., PIN – ________, [District] District (which expression SHALL NOT, unless it be repugnant to the context or meaning thereof include his/her heirs, executors and/or administrators and assigns) of the OTHER PART (hereinafter referred to as the LESSEE).
WHEREAS the leaser is the owner of property in re survey No.___ in Block No.____ in _____________ Village and part of the commercial building therein namely [Name of building complex], [place]. AND
WHEREAS the Lessee approached the owner/Leaser for leasing out the room on the Ground Floor, third room from east in the aforesaid [Name of building complex], [place] having a floor area of ___ sq feet and requested to permit the Lessee to use the said room for functioning it as the [business of the lessee] by the Lessee from [date of commencement of lease] to [date of termination of lease] and the Leaser/owner has accepted the said request and the parties have decided to fulfill the said lease arrangement on the following terms and conditions:-
The Lessee is only permitted to use the said room for conducting his [business of the lessee].
The Lessee shall in consideration of such lease as provided, pay the owner/Leaser the rent for the leased premises on the first day of every month without any delay or fault per month as follows:
a) Though the rent of the building is Rs. {higher rate} the building owner has agreed to give the building on lease to the tenant at a reduced rate of Rs. [Monthly Rental Amount]
b) Rent payable from 1.6.2014 to 1.5.2017 shall be Rs.[Monthly Rental Amount] /- per month
c) Rent payable from 1.5.2017 to 31.7.2017 (for the month ending on 31.7.2017) shall be Rs.[Monthly Rental Amount] /- per month.
d) Tenant agrees to pay, without demand, to Landlord as rent for the building the sum of [Monthly Rental Amount] per month in advance on the first day of each calendar month, at [Address for Rent Payments], or at such other place as Landlord may designate. Landlord may impose a late payment charge of [Late Pay Charge] per day for any amount that is more than five (5) days late. Rent will be prorated if the term does not start on the first day of the month or for any other partial month of the term.
If the lessee continues the occupation of the rented building after the period of the tenancy agreed by this deed i.e. after 31.7.2017, the leaser is entitled to receive normal rent without enhancing the rent through a court of law and adducing evidence as to the cause of enhancement of rent as both the parties mutually agreed that the normal rate of rent in the locality is [higher rate] and 20 % yearly enhancement of rent is reasonable and proper in the said area.
The lessee agrees to pay 15% of the rent as amenity charge in addition to the rent.
The lessee agrees to pay 10% of the rent as maintenance charge in addition to the rent.
The Lessee shall reimburse the amount of Service Tax to the Leaser, if Service Tax or any other statutory charges become payable with respect to the leased premises, after the execution of this deed in addition to the monthly rent payable.
The Lessee shall pay the additional amount of Municipal taxes to the Leaser, as and when the Municipality enhances the tax as per statutory requirement, in addition to the monthly rent payable, in case the applicable Municipal Taxes are enhanced in excess of 100 % .
The Lessee shall also duly pay the electricity and water charges with regard to the schedule building to the Leaser on every due date. The Revenue Taxes for the leased building in the present rate shall be borne by the owner/Leaser.
Upon execution of this Lease, Tenant deposits with Landlord [Security Deposit Amount], as security for the performance by Tenant of the terms of this Lease to be returned to Tenant, Without Interest, following the full and faithful performance by Tenant of this Lease. In the event of damage to the Building caused by Tenant or Tenant’s family, agents or visitors, Landlord may use funds from the deposit to repair, but is not limited to this fund and Tenant remains liable.
The Leaser has got the right to realise the rent amount from the lessee and his assets.
The Lessee shall not undertake any addition or alternation to the leased room. Any damages to the building and fittings caused during the lease period shall be made good by the Lessee with the permission of the Leaser.
A. Tenant agrees that Tenant has examined the Building, including the grounds and all buildings and improvements, and that they are, at the time of this Lease, in good order, good repair, safe, clean, and tenantable condition.
B. Landlord and Tenant agree that a copy of the “Joint Inspection,” the original of which is maintained by Landlord and a copy provided to Tenant, attached hereto reflects the condition of the Building at the commencement of Tenant’s occupancy.
A. Tenant shall make no alterations to the Building or construct any building or make other improvements without the prior written consent of Landlord.
B. All alterations, changes, and improvements built, constructed, or placed on or around the Building by Tenant, with the exception of fixtures properly removable without damage to the Building and movable personal property, shall, unless otherwise provided by written agreement between Landlord and Tenant, be the property of Landlord and remain at the expiration or earlier termination of this Lease.
The Lessee hereby agree to indemnify the Leaser for any loss or damage to property or injury to persons suffered on the Premises as a result of any act or omission by the Lessee or its servants or agents.
Tenant will, at Tenant’s sole expense, keep and maintain the building and appurtenances in good and sanitary condition and tenantable repair during the term of this Lease. In particular, Tenant shall keep the fixtures in the Building in good order and repair; and keep the walks free from dirt and debris. Tenant shall, at Tenant’s sole expense, make all required repairs to the plumbing, electric fixtures, stair, floors, ceilings and walls whenever damage to such items shall have resulted from Tenant’s misuse, waste, or neglect, or that of the Tenant’s agent, or visitor.
The Lessee shall repair any damage caused to the Premises during the Lease Period immediately upon called to do so.
A. Tenant shall not assign this Lease, or sublet or grant any concession or license to use the Building or any part of the Building without Landlord’s prior written consent.
B. Any assignment, subletting, concession, or license without the prior written consent of Landlord, or an assignment or subletting by operation of law, shall be void and, at Landlord’s option, terminate this Lease.
The Lessee shall not keep any articles in the leased premises which are not permitted by law and he shall conduct his business abiding all Laws and Rules with respect the same.
In case of failure to pay the rent in any of the months, the leaser will be entitled to realise the rent amount with 18% interest per annum.
The lease period being the essential condition of this agreement, on the completion of 3 years and the Lessee shall vacate the premises with his articles, if any, on or before the date of expiry of the lease.
Any notice given by or either Party in terms of this Agreement shall be given in writing and shall be delivered by hand to a responsible person present at or sent by facsimile transmission or prepaid registered post to the address of the addressee set of below in terms of this Agreement and whereupon it shall be deemed to have been received when so delivered or faxed or 3 business days after being so sent by post.
The Lessee shall not knowingly or negligently cause or allow to be caused any obstruction or blockage of any sewerage pipes, drains and other supply equipment and installations serving the Premises and shall remove at his own cost any obstruction or blockage which occurs in such pipes or drain as a result of his actions and, where necessary, shall cause, at his own cost, such sewer, pipe or drain to be repaired.
The Lessee shall not do or permit to be done any act which may render the Leaser’s insurance of the Premises against risk of loss or damage attributed to any of the clauses insured against which may increase the rate of premium payable by the Leaser in respect of the Premises with regard to such insurance.
The Lessee shall be responsible for insuring his personal property brought onto the Premises. The Leaser shall not be responsible for any loss, theft or damage to the Lessee’s property, regardless of how such loss, theft or damage is caused.
The Lessee shall not act, nor permit any act, in relation to the Premises which may be a source of annoyance or nuisance or cause damage or disturbance to the occupants of any neighbouring premises or properties.
The Leaser shall, at all reasonable times during the lease Period and with prior arrangement with the Lessee be entitled to have access to and inspect the premises.
The Lessee may apply to the Leaser, in writing, for the Lease Period to be renewed, provided such written application is received at least 2 (two) calendar months prior to the Renewal Period. Any renewal of the Agreement will be entirely at the Leaser’s discretion and on the terms to be negotiated between the Lessee and the Leaser which terms should be reduced to writing.
The Lessee further agree the leaser to realize any dues to him arising out of this lease from the property of the lessee situated at Kottayam District, Kumaranallor Village, Survey No. 87/2 in Block No. 65, having an extend of 45 cents, which is in the name of the lessee as per title deed No. 345 of 2003.
Should the Leaser have to take legal action against the Lessee to enforce its obligations in terms of this Agreement, the Lessee shall pay all legal costs, including collection commission incurred by the Leaser on an attorney and own client scale..
Any notice required or otherwise given pursuant to this Lease shall be in writing; hand delivered, mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service, if to Tenant, at the Building and if to Landlord, at the address for payment of rent.
ii) The tenancy hereby created shall be determinable at the option of the either party by giving to the other party two calendar month’s notice in writing, or by giving two months rent in lue of notice.
Rented Building Owners Association Kerala 
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