Many small businesses and landlords prefer the protection of a written lease that lasts a year or more. But when you talk to the landlord, you'll probably be presented with a typed or printed lease prepared by the landlord or the landlord's lawyer. Because the terms typically favor the landlord, consider it as no more than the starting point. Chances are excellent that you'll be able to negotiate at least some significant improvements. Keep in mind that you have two sometimes conflicting goals: to get a favorable lease and to have a good long-term relationship with your landlord. In the interest of long-term harmony, there are times when it makes sense not to fight for the last scrap of a concession as if you are a starving pit bull.

To eliminate a proposed lease's one-sidedness, ask for equal treatment for you and the landlord for all clauses where this is relevant. For example, if the lease requires you to cure your lease defaults within ten days after you receive notice from the landlord, it should also require the landlord to cure his or her defaults within ten days after you give notice. Similarly, if you're required to pay for your landlord's attorney fees in enforcing the lease, the landlord should be required to pay for your attorney fees if you have to enforce the lease.

A License begins by naming the Licensee and the Licensor. Make sure that the person, partnership, or corporation named as landlord is the owner of the property. Although this may seem to go without saying, it often doesn't. A husband may not have legal authority to sign leases for space in a property owned solely by his wife. If you have any doubts about whom you're dealing with and what authority they have, ask to see a Title deed or Share Certificate, Society bills to verify that the named landlord really owns the apartment. Here are the rules about who's authorized to sign a Leave & License Agreement on behalf of the landlord

A. If an individual owns a property, that person (or an authorized valid Power of Attorney holder) should sign the lease.

B. If a building is owned by a general partnership, insist on the signature of one of the partners and don't forget to ask for the Partnership deed.

C. If a building is owned by a Limited Company (not uncommon for rental properties), require the signature of a Managing Director who is empowered with a board resolution to sign on behalf of the Company.

D. If a corporation owns a building, get the signature of a corporate Officer or a Company Secretary with authority to sign leases.

E. If you're dealing with a rental agent who will be negotiating the lease and signing it on behalf of the owner, ask for written confirmation from the owner that the agent has that authority.
Obviously, you need to worry less about this step if the rental agent is part of an established and respected real estate management company, but it never hurts to request documentation.

Please ensure that you look for these point in the Agreements.

1. Name of the Company and the Occupant.

2. Period of the Licence - Date ___ to Date ____.

3. Renewable clause if any after the expiry of the of __ Years, if yes, then escalation clause stating that _% escalation in the rent will be given.

4. Termination Notice - one sided or both sided as agreeable to you.

5. Society and Municipal taxes payable by either Licensor or the Licensee.

6. Penalty charges up to three times the License Fee payable per month in the event of the Licensee not vacating the premises upon the expiry of the Agreement.

7. Interest on Security Deposit and No License Fees (rent) payable by the Licensee if the landlord (the Licensor) fails to pay back the Security Deposit upon the expiry of the Agreement to the Licensee and right to occupy the premises till the Security Deposit is not refunded.

8. Ensure an exit clause in the Agreement if the premises becomes unfit for occupation because of rain or any act of God etc.

9. Arbitration and Jurisdiction clause.

For a copy of the Leave & License and other Agreements or any other advice please mail us on property@realestatemumbai.com