Can NRIs execute a tenancy agreement through SPAs?
Can a non-resident Indian (NRI), who owns several properties in India but is not able to visit the country often, execute a tenancy agreement through a special power of attorney (SPA) holder.
—Name withheld on request
As an owner of immovable properties, an NRI is allowed to enter into an agreement either on rental basis or sell the properties on such terms and conditions as may be agreed between the seller and the purchaser subject to provisions of the applicable laws. The NRI can execute a SPA in favour of the attorney based in India and where the immovable properties are located, empowering the constituted attorney to execute the agreement with proposed tenant, licensee or purchaser (as the case may be) along with various other incidental powers to execute and register the deed.
Since the issue in hand involves immovable properties and since we are unaware of the specific details of the jurisdiction of the immovable property, the special power of attorney will have to be registered and stamped as per the applicable state laws.
As a landlord, how does unauthorized subletting affect the original lease agreement, and what obligations does the tenant have under landlord-tenant laws? Moreover, are there any preventive measures or legal clauses that I can include in my lease agreements to address and discourage unauthorized subletting?
—Name withheld on request
Ideally, the terms of tenancy are be governed by the tenancy agreement executed between the landlord and the tenant. The agreement may also include an arrangement in relation to sub-letting of the tenanted premises. Under the given circumstances, in absence of a contract to the contrary, the landlord may either ratify the action of the tenant in subletting the tenanted premises or may alternatively recover possession of the tenanted premises by seeking appropriate relief of eviction of the tenant as well as sub-tenant from the tenanted premises.
Aradhana Bhansali is a partner at Rajani Associates.
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Published: 09 Jan 2024, 08:44 PM IST