Partners property let out to firm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2012 Sir,

Partners like to let out land to firm on which the firm shall construct any building. Rent will be paid.

1) But end of period the building or structures at wat ever cost was built shud vest with partners as landlords. Is it fine to draft any such agreement. Is it void? or legal issued from income tax angle?

2) Can firm claim depreciation?

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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05 March 2012 no problem in such an arrangement'
Read Explanation 1 to section 32 and draft agreement accordingly
CA MANOJ GUPTA
JODHPUR
09828510543

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2012 S sir. i read it. to confirm with experts posted here for confirmation. Can i get a draft of lease agreement for partners letting out property to their own firm?

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Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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09 August 2024 Certainly! Below is a draft of a lease agreement for partners letting out property to their own firm. This draft assumes that the partners are leasing the property to a partnership firm they are involved with. Adjustments might be needed based on specific requirements, legal advice, or jurisdictional variations.

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**LEASE AGREEMENT**

This Lease Agreement ("Agreement") is made and entered into on this [Date] by and between:

1. **Lessor(s)**: [Partner Name(s)], residing at [Partner Address(es)], hereinafter referred to as the "Lessor".

2. **Lessee**: [Partnership Firm Name], a partnership firm registered under the Partnership Act, 1932, with its principal place of business at [Firm's Address], hereinafter referred to as the "Lessee".

**WHEREAS**:

- The Lessor is the owner of the property described below;
- The Lessee is a partnership firm and wishes to lease the property from the Lessor for its business operations.

**NOW, THEREFORE, THIS AGREEMENT WITNESSETH AS FOLLOWS:**

### **1. Description of Property**

The Lessor agrees to lease to the Lessee, and the Lessee agrees to take on lease from the Lessor, the property located at [Property Address], including the following:

- [Description of the Property: e.g., "Office space of 1,000 sq. ft., including reception area, 2 rooms, and a restroom."]

### **2. Lease Term**

The term of this lease shall commence on [Start Date] and shall continue for a period of [Lease Term, e.g., one year] until [End Date], unless terminated earlier in accordance with the provisions of this Agreement.

### **3. Rent**

- **Amount**: The Lessee agrees to pay the Lessor a monthly rent of [Rent Amount, e.g., ₹50,000].
- **Due Date**: Rent shall be payable in advance on the [Due Date, e.g., 5th] day of each month.
- **Mode of Payment**: Rent shall be paid by [Payment Method, e.g., bank transfer] to the Lessor’s account as follows:
- **Account Name**: [Account Name]
- **Account Number**: [Account Number]
- **Bank Name**: [Bank Name]

### **4. Security Deposit**

The Lessee shall pay a security deposit of [Deposit Amount, e.g., ₹100,000] to the Lessor, which shall be refundable at the end of the lease term, subject to any deductions for damages or outstanding dues.

### **5. Use of Property**

The Lessee agrees to use the property solely for [Purpose of Use, e.g., office purposes] and shall not use it for any unlawful activities or purposes inconsistent with this Agreement.

### **6. Maintenance and Repairs**

- **Maintenance**: The Lessee shall be responsible for the day-to-day maintenance and minor repairs of the property.
- **Major Repairs**: Major repairs required due to structural issues or natural wear and tear shall be the responsibility of the Lessor.

### **7. Utilities**

The Lessee shall bear all expenses related to utilities, including but not limited to electricity, water, and telephone charges.

### **8. Termination**

- **Termination by Notice**: Either party may terminate this Agreement by providing [Notice Period, e.g., one month] written notice to the other party.
- **Termination for Breach**: In the event of a breach of any terms of this Agreement, the non-breaching party may terminate this Agreement by providing written notice of [Notice Period, e.g., 15 days] to the breaching party.

### **9. Governing Law**

This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction, e.g., India].

### **10. Miscellaneous**

- **Amendments**: Any amendments to this Agreement must be made in writing and signed by both parties.
- **Entire Agreement**: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

**IN WITNESS WHEREOF**, the parties hereto have executed this Lease Agreement as of the day and year first above written.

**LESSOR:**

Signature: _________________________
Name: [Partner Name]
Address: [Partner Address]

**LESSEE:**

Signature: _________________________
Name: [Authorized Signatory]
Position: [Position]
Partnership Firm Name: [Firm Name]
Address: [Firm Address]

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**Note**: This draft is a basic template. It is advisable to consult with a legal professional to ensure that the lease agreement complies with all local laws, regulations, and specific needs of the parties involved.