Is tenancy agreement transferable?

Is tenancy agreement transferable?

As per the Indian tenancy law, a tenant has the right to transfer his tenancy to a new tenant, provided he incorporates an explicit tenant transfer clause in the rent agreement. By nature, a rent agreement is a legal binding on the tenant and violating it implies a substantial compensation to the landlord.

How do I assign my lease?

The process of assignment of a lease is essentially selling the lease to a third party (the “assignee”). If you are a commercial property tenant, your contract likely contains a clause that allows you to assign your lease to a new tenant. To do this, you will need to find a potential new tenant yourself.

Can you assign a residential lease?

This means that under most agreements for an individual tenant to lease a property from a landlord it is perfectly legal for the tenant to assign the lease to another individual. The original tenant will the vacate the premises with the leasehold agreement being taken over by the individual whom it was assigned to.

What is the purpose of a transfer of lease?

A lease transfer is effectively changing that lease from your name and transferring all those rights and obligations to another person who will be taking over the lease. But be mindful of when the lease transfer begins. Generally, tenants are required to pay their rent a month in advance.

Can lease be transferred?

After a lease is created, the lessor cannot reserve to himself any share in the right of possession. The words ‘transfer of a right to use the property’ indicates that all rights of ownership are not transferred. A lease can be effected from year to year or can be for more than a year.

Is there transfer of ownership in lease?

Right of possession: Ownership rights are not transferred in a lease, only the possession of the property is transferred. Rent: Consideration for a lease can be taken in the form of a rent or premium.