Lease Agreement

Our Ref: _____

Dated :  ………….

Dear  Mr. J

Fm: ……………………………………………………………………………

We refer to your e-mail  dated …………regarding “X”.

We took note of your concern. We hereunder draw down  our opinion  in the light of the law of the Country:

Y is apprehending that the Lessor may sell the leased property and has sought our opinion on whether CSAF can remain in occupation for the entire lease term relying on clause 10 of the Lease Agreement.  We are of the view that as the purchaser is not a party to the Lease Agreement, the terms and conditions of the Lease Agreement  are not binding upon him.  Further, clause 10 also does not bar the Lessee from  selling out the premises. It is all upon the purchaser whether he will accept the lease or not.  CSAF may purse the purchaser to  continue the lease but cannot force the purchaser unless the purchaser has knowledge  of clause 10.  As no registration took place, it is highly likely that in such situation the purchaser  may deny of knowledge of any existing lease.

The purpose of registration is to give notice to the public  who wants to deal with the leased property. As Y is apprehending that the Lessor may sell the leased property, the best course of action for CSAF  could be registering the lease deed, so that whosoever wants to purchase the leased property may have notice of the lease in that property.

Further pursuant to section 107 of the Transfer of Property Act 1882, a lease of immovable property from year to year, or for any term exceeding one year can be made only by a registered  instrument. Any unregistered lease deed  is inadmissible in evidence for lack of registration. However, no lease deed shall be treated as void for want of registration.

However, CSAF cannot register the lease deed now. Because,  pursuant to section  23 of the Registration Act  1908 no document shall be accepted for registration unless presented within four months from the date of its execution.  The lease deed in question was executed in February, 2004, as such, it has become time barred. Further the exception provided under the aforesaid Act is also not applicable in the present circumstances.

In the premises, we are of the view that  CSAF,  on the basis of  clause 10 of the lease deed, cannot restrain the Lessor from selling out the premises. If  the sale is made, CSAF  may pursue the purchaser to continue the lease. If the purchaser declines, the matter may be referred to  the Court of Law for declaration that CSAF is entitled to be in occupation for the lease term on the strength of clause 10 of the lease deed.

Regarding   the assistance sought from us in connection with the negotiation with CSAF, we _______________, our  fees ______________________

Thanking you.

Best regards

Drafted by:

For: “The Lawyers & Jurists”
M.L.Hotel Tower Ltd,208,Shahid Syed Nazrul Islam Sarani,
Bijoy Nagar, Dhaka-1000.