Bank lease agreement

Agreement deeds 1203 views 4 replies

Nell

32 Points Joined July 2012

Sir,

A PSU Bank is in our premises for past 1 Year. It had presented to us couple of months back a lease agreement, the terms of which were not acceptable to us and we conveyed the same. It had not shared with us this agreement at time of offer letter. The first term stated that the bank can in 45 days cancel the lease but the owner cannot cancel till 15 years? We have spent close to 3 years rent on the changes sought by bank for our existing building and the bank says that it can on whim and fancy vacate. New Branch anyway is big business for the..................

We have already given 15 KV power. Another term states that any additional power requirement of bank will have to be mandatorily given by owner else bank will pay and deduct. This is ridiculous. They harassed us till we got a transformer and now govt has given orders that for any load, transformers not needed. We asked them to wait for 10 days for us to get power from alternate sources but they didnt. They actually didnt open the bank till a few months later. Sheer wastage of 2 years of Rent.

The bank had initially said that it will allow review of rents at market rate after 5 yrs but in agreement, it wasnt mentioned and it said 15% on top of existing rent only every 5 years till 15 years.

I want to know what is legal status of the bank. Do we need to get a new offer letter? It is paying rent monthly currently and to my knowledge it is just a monthly tenant now?

Also, our insurance company asked that if there is any damage to building top floors due to short circuit at bank, bank needs to bear responsibility for damage and they need to pay insurance for that. The bank says that it doesnt have anything to do with it. Kindly clarify what is right.

Lot of 'DO DO BASAVANNAS" say that it is standard agreement but the terms are against owner. The hundreds of sufferers on this board alone (owners who have leased to banks) are witness that they didnt read the agreement before signing it. Seeking your advise. Can we continue in this way if the bank doesnt agree to change in terms.

Replies (4)

Levonas Tears Amana

2 Points Joined March 2017

I think the bank is now a monthly tenant and you better renegotiate a new offer letter or ask bank to modify some of the conditions which with permission they can change easily. It is good to know that you questioned. 99.95% of bank building owners blindly sign the lease agreement and later repent like me. It is good to wait and sign only after all your questions are clarified. As a fellow owner, can say that you are doing right thing. I am booked till 8 years more deriving rent lesser than a PAN shop in my locality.

manoj

student

5205 Points Joined February 2009

GO TO ADVOCATE AND FILE A LEGAL SUIT IT IS ONLY REMEDY FOR YOU

CA Neha Agrawal

830 Points Joined June 2008

The terms are not illegal but not favorable to one of the parties. This type of clause can be found in agreement with government. Better to take legal opinion.

Nell

32 Points Joined July 2012

Dear All,

Thx for your support and response.

Having a nationalized bank in premises was once upon a time a great pride. An admin person from same bank is proudly saying that they are paying 4000 rs rent in prime locality in a metro where rent is more than 1.5 lakhs because of this so called 15 yrs lease. Private banks do not harass as much as PSU banks and they are not so Arrogant as well. On this board alone and in complaint boards, i have read owners crying because PSU banks are not vacating even after 15 yrs are over. So even after signing such lease, there is no safety.

If i had researched all this before giving to bank, i wouldnt have obviously given it. Your response i hope will help others.

Thx once again.