In this article, we will master the use of AI in drafting a transfer of tenancy agreement, as well as understand the laws that govern it and the key components of such an agreement. So if you are a law student or a lawyer who has to do a lot of legal drafting work, this article will completely transform your working style and make it faster and better.
Table of Contents
Introduction
It was a Tuesday evening when my law school friend Arjun called me.
He said, “You won’t believe what happened today.”.. “My family’s been running our textile export business from this prime location in Lower Parel for the last 12 years.
But my father wants to retire, and we are shifting operations to Pune, and we have found a buyer willing to pay us handsomely for the tenancy transfer in his name
I could hear the excitement in his voice, but then it dropped.
“The problem is, this buyer, he is a friend of a friend, and he has been asking me for weeks now:
‘When will you give me the transfer papers?’
And honestly, I have been avoiding him because I have no idea how to create a proper transfer agreement.
The landlord is okay with it, but he wants everything ‘legally proper,’ as he puts it.
I have already consulted three lawyers, and they are all quoting Rs. 40,000-50,000, asking me to give them 7-10 days. By that time, this buyer might lose interest.
Arjun’s problem struck me as incredibly common in today’s commercial real estate scenario.
Here was a family business with a valuable asset, a long-term tenancy at below-market rent in a prime location, but they were stuck because creating the legal documentation seemed overwhelmingly complex and expensive.
But what was really creating this bottleneck?
The core issue was not legal complexity, it was the traditional approach to legal drafting that makes simple transactions unnecessarily complicated..
Most business owners think that tenancy transfers require weeks of legal back-and-forth, multiple meetings with lawyers, and substantial fees because “it’s complicated paperwork involving three parties.”
This traditional mindset is precisely what keeps valuable business opportunities stuck in legal limbo.
The reality is that a well-structured transfer of tenancy agreement follows predictable patterns and contains standard legal protections that can be systematically assembled once you understand the framework, but most people never get exposed to this systematic approach.
In conventional practice, lawyers manually research precedents, draft from scratch, go through multiple revisions, and charge premium fees for what is essentially following a structured legal template, a process that naturally takes weeks and costs tens of thousands.
But what if I told you there is a way to create a comprehensive, legally sound transfer agreement in under 3 hours with professional-grade results?
My friend was sceptical when I mentioned this, but his deadline pressure made him curious.
After practising real estate law for over a decade, I have spent the last year developing and refining AI-assisted legal drafting techniques specifically for commercial real estate transactions.
The results have been transformative: what used to take my junior associates 3-4 days of research and drafting can now be completed in 2-3 hours with superior attention to legal details and statutory compliance.
The best part? The systematic approach I’ll share with you ensures that every critical legal protection is included while eliminating the guesswork and inefficiency of traditional drafting methods.
Today, I will walk you through the exact step-by-step methodology I used to help Arjun create a comprehensive transfer agreement that protected all parties and closed his deal within 48 hours.
Once you understand this systematic approach, you’ll have the tools to handle similar agreements efficiently while ensuring complete legal protection for everyone involved.
Let me show you how modern legal technology can turn complex three-party documentation from a weeks-long ordeal into a streamlined, professional process.
If you want to learn how to draft a tenancy agreement, then you can read through my article on how to draft a monthly tenancy agreement using AI
But first, we need to understand the legal foundations.
What is a transfer of tenancy agreement?
A transfer of tenancy agreement is a tripartite legal document that formally transfers existing tenancy rights from one tenant to another with the landlord’s consent, while establishing new rental terms and ensuring all parties’ rights and obligations are properly documented.
They are particularly important for commercial arrangements where business needs change and valuable tenancy rights need protection.
Moving on, let us see how the transfer of tenancy works under different rent control laws.
Let us now understand the components of a transfer of tenancy agreement.
What are the components that make a transfer of a tenancy agreement legally effective?
Based on Maharashtra Rent Control Act requirements and practical experience, every comprehensive transfer of tenancy agreement must systematically address eight critical areas:
1. Tripartite party identification and authorities: Proper identification prevents disputes about who has rights and obligations under the transfer agreement. All three parties, viz. the outgoing tenant, the landlord, and the incoming tenant, must be clearly identified with verifiable legal capacities and authority to enter the transaction.
2. Existing tenancy details and rights: Comprehensive documentation prevents disputes about what rights are being transferred. Specify current rent, tenancy duration, property description, and all existing terms to ensure clarity about the transfer scope.
3. Landlord consent and new terms: Explicit landlord consent is mandatory for legal validity. You must mention any modifications to rental terms, conditions, or property use restrictions that the landlord requires for accepting the new tenant.
4. Transfer consideration and payments: Clear documentation prevents payment disputes between parties. Specify consideration paid by the incoming tenant to the outgoing tenant, handling of security deposits, and any enhanced rental obligations.
5. Possession transfer and timing: Detailed provisions prevent disputes about transition timing and property condition. Establish clear procedures for a peaceful handover from the outgoing to the incoming tenant.
6. Representations and warranties: Assurances about tenancy validity protect incoming tenant interests. The outgoing tenant must represent that the tenancy rights are clear, subsisting, and free from disputes or encumbrances.
7. Future obligations and compliance: The new tenant’s acceptance of ongoing obligations ensures continuity. Address compliance with rent control legislation, municipal regulations, and building requirements.
8. Execution and registration requirements: Proper formalities ensure legal validity and enforceability. Include stamp duty obligations, registration requirements, and documentation support provisions.
Now, let us move on to the drafting process using AI.
How to use AI to draft a transfer of tenancy agreement?
Let me walk you through the complete methodology I developed to transform transfer agreement drafting from a complex, error-prone process into an efficient, comprehensive system.
I am going to use ChatGPT to teach you since I found it to be surprisingly good at drafting structured legal documents with minimal input.
Step 1: Teaching AI the transfer framework and transaction context
The first step is to establish both the legal foundation for tenancy transfers and the specific transaction details so AI understands we are creating a comprehensive three-party agreement that transfers existing rights while establishing new obligations.
Why this matters: AI needs to understand that this is not just a contract assignment; it is a complex transfer involving existing tenancy rights, landlord consent requirements, and establishment of new rental relationships that must work together seamlessly.
What not to do: Never start with “Draft a tenancy transfer agreement.” This produces generic content that misses the complex three-party dynamics and fails to provide comprehensive protection for all parties.
This is my systematic prompt:
“I need to draft a comprehensive transfer of tenancy agreement involving an established corporate tenant transferring their long-term commercial tenancy rights to another company with the landlord’s consent. This involves a prestigious office space in Mumbai where the outgoing tenant no longer needs the premises and wants to transfer to an incoming tenant, with the landlord agreeing to accept the new tenant at modified rental terms. Help me create a tripartite agreement that ensures proper transfer of existing tenancy rights, landlord consent documentation, clear consideration arrangements, smooth possession transfer, and protection for all three parties against future disputes.”
This is the result I received from ChatGPT:
“I understand this requires a comprehensive three-party transfer of tenancy agreement addressing complex commercial property relationships. For effective drafting, I need complete details about all three parties and their legal authorities, the existing tenancy terms and conditions being transferred, specific landlord consent requirements and any modified rental terms, transfer consideration amounts and payment arrangements, detailed property description and current rental details, possession transfer timeline and procedures, representations about tenancy validity and cleared obligations, and compliance requirements under applicable rent control legislation. This document must balance the outgoing tenant’s exit needs, landlord’s property protection interests, and incoming tenant’s business continuity requirements while ensuring complete legal compliance and enforceability.”
This foundation ensures that every subsequent step contributes to complete transaction success.
Step 2: Providing comprehensive transaction details
How do you give AI all the complex information needed for a three-party transfer agreement?
By a systematic organisation that mirrors how experienced commercial lawyers analyse transfer transactions, complete party details, existing tenancy terms, transfer arrangements, and consent requirements.
Why systematic organisation works: Three-party transactions involve multiple interconnected relationships and obligations. Organised information helps AI understand these relationships and ensure consistent treatment throughout the agreement while preventing contradictory provisions.
What not to do: Do not provide scattered information about parties or unclear transfer terms.
This is my comprehensive details prompt:
“Here are the complete transaction details for systematic transfer agreement drafting:
The Three Parties:
- Outgoing Tenant: Tech Solutions India Ltd., a company registered under the Companies Act, having an office at Business Center, Andheri East, Mumbai 400 069
- Landlord: Premium Properties Ltd., a company registered under the Companies Act, having its office at Heritage Building, Nariman Point, Mumbai 400 021
- Incoming Tenant: Digital Marketing Solutions Pvt. Ltd., a company registered under the Companies Act, having an office at Corporate Plaza, Bandra West, Mumbai 400 050
Existing Tenancy Details:
- Property: Commercial office space comprising Ground floor 2023 sq.ft., Mezzanine floor 796 sq.ft., total 2819 sq.ft.
- Building: Heritage Tower, located at the junction of Marine Drive and Nariman Point, Fort, Mumbai
- Current Rent: ₹85,000 per month paid by outgoing tenant
- Tenancy Duration: 12 years of continuous occupation
- All obligations are current and rent payments up to date
Transfer Arrangement:
- Transfer Consideration: ₹15,00,000 paid by the incoming tenant to the outgoing tenant
- New Rental Terms: Enhanced rent of ₹1,25,000 per month for incoming tenant
- Security Deposit: ₹3,75,000 (three months’ advance rent) to be paid bythe incoming tenant
- Possession Transfer: Immediate upon execution of the agreement
Landlord Consent Terms:
- The landlord agrees to accept the incoming tenant without monetary consideration to the landlord
- Existing security deposits to be transferred for the incoming tenant’s benefit
- New tenancy to be governed by the Maharashtra Rent Control Act, 1999
- Commercial use is to continue as per the existing arrangement
Create a comprehensive three-party transfer agreement ensuring complete legal protection for all parties.”
This is how ChatGPT responded:
“This presents a comprehensive commercial tenancy transfer requiring sophisticated three-party documentation. I’ll structure this agreement to include proper tripartite opening with all three parties’ identification and authorities, detailed recitation of existing tenancy rights and current arrangements, explicit landlord consent provisions with any modified terms, clear transfer consideration and enhanced rental arrangements, systematic possession transfer procedures, comprehensive representations about tenancy validity and cleared obligations, incoming tenant’s acceptance of ongoing compliance requirements, and proper execution formalities. The agreement must ensure seamless transition while protecting the outgoing tenant’s exit interests, the landlord’s property rights, and the incoming tenant’s business continuity needs.”
AI now understands both the legal complexity and specific transaction elements needed for creating an effective, comprehensive three-party transfer agreement.
Step 3: Drafting the tripartite opening and legal foundation
How do you establish the proper legal structure for a three-party agreement?
With formal legal language that establishes the document’s authority as a comprehensive transfer instrument, properly identifies all three parties with their legal capacities and authorities, and creates foundational recitals explaining the complete transaction context.
Why proper tripartite structure matters: It is expected that transfer agreements follow established legal formats demonstrating legitimate three-party relationships rather than informal arrangements. Proper structure ensures enforceability and prevents disputes about authority.
What not to do: Don’t use casual language or treat this as a simple assignment. Avoid incomplete party descriptions or missing authority statements that could undermine the agreement’s legal effectiveness.
My prompt is as follows:
“Based on our transaction details, draft the formal legal opening including: proper agreement title as ‘AGREEMENT OF TRANSFER OF TENANCY’, execution date and location as Mumbai, complete identification of Tech Solutions India Ltd. as ‘OUTGOING TENANT’ with company details and succession provisions, Premium Properties Ltd. as ‘LANDLORDS’ with company details and succession provisions, Digital Marketing Solutions Pvt. Ltd. as ‘INCOMING TENANT’ with company details and succession provisions, and comprehensive WHEREAS clauses explaining that landlords own Heritage Tower building, outgoing tenant has valid subsisting tenancy rights, board of directors of outgoing tenant has authority to transfer tenancy, parties have agreed to transfer arrangement with landlord consent, and desire to record terms and conditions. Ensure to use proper legal tone in the draft.”
This is the result generated by ChatGPT:
“THIS AGREEMENT OF TRANSFER OF TENANCY made at Mumbai this ________________ day of _________ 2024 BETWEEN TECH SOLUTIONS INDIA LTD., a company registered under Companies Act, 1956 and having their office at Business Center, Andheri East, Mumbai-400069, hereinafter referred to as “THE OUTGOING TENANT” (which expression shall unless it be repugnant to the context or meaning thereof mean and include its successors and assigns) OF THE FIRST PART;
PREMIUM PROPERTIES LTD., a company duly registered under Indian Companies Act and having its office at Heritage Building, Nariman Point, Mumbai-400021 hereinafter referred to as “THE LANDLORDS” (Which expression shall unless it be repugnant to the context or meaning thereof mean and include its successors and assigns) OF THE SECOND PART; AND
DIGITAL MARKETING SOLUTIONS PVT. LTD., a company duly registered under The Companies Act of 1956 and having its registered office at Corporate Plaza, Bandra West, Mumbai 400 050, hereinafter referred to as “THE INCOMING TENANT” (Which expression shall unless it be repugnant to the context or meaning thereof mean and include its successors and assigns) OF THE THIRD PART;
WHEREAS: (a) The Landlords are the owners of the building known as “Heritage Tower” situate at junction of Marine Drive and Nariman Point, Fort, Mumbai. The Landlords are also the owners of the following premises Ground floor admeasuring 2023sq.ft., Mezzanine floor admeasuring 796 sq.ft. totaling 2819 sq.ft. (hereinafter referred to as “the said office premises”) and which is more particularly described in the Schedule hereunder written;
(b) The Outgoing Tenant is the lawful tenant in respect of the office premises and its tenancy rights to the same are valid and subsisting. The rent receipt in respect of the said premises stands in the name of the Outgoing Tenant.
(c) The Board of Directors of the Outgoing Tenant has the power and authority to transfer or otherwise dispose of tenancy rights and the right and privilege on such terms and conditions as the Board may think fit;
(d) The Outgoing Tenant has agreed to transfer its tenancy rights in respect of the said tenanted premises in favour of the Incoming Tenant upon obtaining the consent of the Landlord.
(e) The Outgoing Tenant has resolved to transfer its tenancy rights in favour of the incoming tenant and deliver vacant and peaceful possession thereof to the incoming tenant.
(f) The parties are desirous of recording the terms of transfer by executing this deed.”
This establishes a proper tripartite legal foundation with formal party identification, comprehensive transaction context, and authority documentation.
Step 4: Core transfer provisions and consideration
How do you draft the essential transfer and payment provisions?
By creating the core clauses that formally transfer tenancy rights, document consideration payments, establish possession transfer, and provide the framework for the new tenancy relationship.
Why core transfer terms are critical: These provisions form the heart of the transfer by formally moving tenancy rights while establishing payment obligations and possession arrangements. Clear terms prevent future disputes about what was actually transferred and received.
What not to do: Never use ambiguous language about transfer scope or consideration amounts. Avoid incomplete possession transfer provisions that could create disputes about timing or condition of premises.
My prompt for core terms:
“Based on our established opening, draft the core transfer provisions using ‘NOW IT IS AGREED, DECLARED AND CONFIRMED……’ format, followed by numbered clauses covering: Clause 1 – formal transfer of tenancy rights in 2023 sq.ft. ground floor and 796 sq.ft. mezzanine floor totaling 2819 sq.ft. from outgoing tenant to incoming tenant with landlord consent; Clause 2 – consideration of ₹15,00,000 paid by incoming tenant to outgoing tenant with receipt acknowledgment; Clause 3 – possession transfer from outgoing tenant to incoming tenant with confirmation that outgoing tenant has no further rights and all deposits transfer to incoming tenant’s benefit. Ensure to maintain a similar tone as the previous result.”
This is the result generated by ChatGPT:
“NOW IT IS AGREED, DECLARED AND CONFIRMED BY AND BETWEEN THE PARTIES HERETO AS UNDER:—
- The Outgoing Tenant hereby transfers his tenancy rights, title and interest in the said premises admeasuring about 2023 Sq.Ft. ground floor and mezzanine floor premises admeasuring about 796 Sq.Ft. aggregating to 2819 Sq.Ft. (hereinafter referred to as the said tenanted premises, more particularly described in the schedule hereinunder written) in the said building to the Incoming Tenant, with the Landlords having given consent to the said transaction in favour of the Incoming Tenant as recorded herein.
- In consideration of the aforesaid transfer of tenancy, the Incoming Tenant has paid a sum of Rs. 15,00,000/- (Rupees Fifteen Lacs only) to the Outgoing Tenant. The Outgoing Tenant hereby confirms and acknowledges receipt of the same in full and final satisfaction.
- The Outgoing Tenant has, upon execution hereof, handed over vacant and peaceful possession of the said premises described in the schedule herein above to the Incoming Tenant. Henceforth, the Outgoing Tenant has no right, title, interest and/or claim of whatsoever nature in the said premises or any part thereof. All the deposits, if any, earlier paid by the Outgoing Tenant to the Landlords stand transferred for the benefit of the Incoming Tenant.”
Since I liked the result generated in Step 3, I asked ChatGPT to maintain the same tone.
Step 5: Representations, warranties, and obligations
How do you handle the aspects of assurances and ongoing obligations?
By creating specific provisions that address tenancy validity representations, clear obligations confirmations, and the establishment of the new tenant’s compliance requirements.
Why representations and warranties matter: Transfer agreements require assurances that the tenancy being transferred is legally valid and free from encumbrances. Proper warranties protect the incoming tenant while cleared obligations protect all parties.
What not to do: Don’t skip representations about tenancy validity or pending disputes. Avoid incomplete obligation transfer provisions that could leave unclear responsibilities.
My prompt for representations and ongoing obligations:
“Continue with clauses covering representations, warranties, and ongoing obligations: Clause 4 – outgoing tenant’s representations that tenancy rights are subsisting, clear, marketable, free from encumbrances, not subject to litigation, and no prevention from entering agreement; Clause 5 – confirmation that outgoing tenant has paid all rent, taxes and outgoings till date with no amounts recoverable, and future outgoings to be paid by incoming tenant; Clause 6 – landlord’s simultaneous admission of incoming tenant with enhanced rent of ₹1,25,000 per month, three months advance rent payment acknowledgment, and governance under Maharashtra Rent Control Act with commercial use continuation. Make the clauses detailed.”
This is the result generated by ChatGPT:
“4. The Outgoing Tenant has represented and assured to the Incoming Tenant that his tenancy rights to the said premises in the capacity of tenant thereof is subsisting, clear, marketable and free from any encumbrances and reasonable doubts whatsoever, subject to the right of the Landlords, and that the said premises are not subject matter of any litigation or dispute, claim charge, lien whatsoever of any kind with any third party. The Outgoing Tenant states that it is in no manner directly and/or indirectly prevented from entering into this agreement.
5. The Outgoing Tenant has already paid all the rent, taxes, cesses and other outgoings in respect of the said premises till the date hereof and there are no amounts recoverable from the outgoing tenant in respect thereof. All further rent, permitted increases and other outgoings shall be payable by the Incoming Tenant from the date hereof.
6. The Landlords have simultaneously on execution hereof admitted the Incoming Tenant as tenant of the said premises described in the schedule herein under in the said building owned by them and the Incoming Tenant agrees to pay the monthly rent to the Landlords from the date hereof at the enhanced rent of Rs. 1,25,000/- per month. On execution hereof and as aforestated, the Outgoing Tenant has, with the consent of the Landlords, put the Incoming Tenant in possession of the said premises described in the schedule herein under as a lawful tenant thereof. The Incoming Tenant has on or before execution hereof paid three months’ advance rent to the Landlords, and the receipt of the same is hereby acknowledged by the Landlords. The tenancy of the Incoming Tenant shall be governed by the provisions of the Maharashtra Rent Control Act, 1999. The Incoming Tenant shall use the said premises only for commercial purposes.”
You may have noticed that I have asked ChatGPT to provide me with detailed clauses. This is to avoid shorter results that do not cover the essence of the document.
Step 6: Documentation, execution, and cost provisions
How do you manage the documentation requirements and formalities for execution?
By creating provisions that address future documentation needs, cost allocation, and proper execution requirements that ensure the transfer is legally complete and enforceable.
Why documentation and execution provisions matter: Because transfer agreements often require follow-up documentation for regulatory compliance.
What not to do: Do not ignore stamp duty and registration requirements. Avoid unclear cost allocation that could create disputes about who pays for what documentation.
My prompt for documentation and execution provisions:
“Continue with final clauses covering documentation and execution requirements: Clause 7 – outgoing tenant’s agreement to execute all necessary documents, deeds, forms, undertakings and assurances as required by incoming tenant and landlords at incoming tenant’s cost; Clause 8 – incoming tenant to bear all stamp duty and registration charges with registration being condition precedent for creation and grant of tenancy.”
This is the result generated by ChatGPT:
“7. The Outgoing Tenant hereby agrees and covenants to execute all necessary writings, documents, deeds, forms, undertakings, affidavits and other assurances as may be required by the Incoming Tenant and/or the Landlords at the cost of the Incoming Tenant.
8. The Incoming Tenant shall bear all expenses of stamp duty and registration charges of these presents. The payment of stamp duty and registration of this instrument is the condition precedent to the creation and grant of tenancy of the said premises.”
These provisions ensure comprehensive documentation support and proper legal formalities.
Step 7: Property schedule and execution format
How do you complete the agreement with proper property description and execution requirements?
By adding a detailed property schedule with precise measurements and location details, plus proper execution formalities that ensure legal validity and registrability for all three parties.
Why property schedule and tripartite execution matter: Detailed property descriptions prevent future disputes about transfer scope. Proper three-party execution ensures all parties are legally bound and the transfer is enforceable.
What not to do: Do not use vague property descriptions that could create boundary disputes. Avoid incomplete execution blocks that miss any of the three parties.
My prompt for the property schedule and execution:
“Complete the transfer agreement with property schedule and execution formalities: detailed property schedule describing ground floor 2023 sq.ft. and mezzanine floor 796 sq.ft. in Heritage Tower building at junction of Marine Drive and Nariman Point with complete survey numbers and registration details; proper tripartite execution format (Signed and Delivered by within named ____) with witness signature blocks for outgoing tenant, landlords, and incoming tenant using formal legal language.”
This is the result generated by ChatGPT:
“SCHEDULE OF THE PROPERTY
The premises admeasuring 2023 sq.ft. ground floor and premises admeasuring 796 sq.ft. of mezzanine floor in the building known as Heritage Tower, located at the junction of Marine Drive and Nariman Point, Fort Mumbai 400 021 and bearing C.S. No.892 of Fort Division within the Registration District and Sub District of Mumbai City and Mumbai Suburban.
SIGNED AND DELIVERED
by the withinnamed “The Outgoing Tenant”
TECH SOLUTIONS INDIA LTD.
Witnesses:
SIGNED AND DELIVERED
by the withinnamed “The Landlords”
PREMIUM PROPERTIES LTD.
Witnesses:
SIGNED AND DELIVERED
By the withinnamed “The Incoming Tenant”
DIGITAL MARKETING SOLUTIONS PVT. LTD.
Witnesses:
Step 8: Final document integration
How do you combine all sections into a single, comprehensive transfer agreement?
My final integration prompt:
“Combine all the sections we’ve developed – from the tripartite opening with complete party identification and comprehensive WHEREAS clauses detailing existing tenancy and transfer arrangements, through the core transfer provisions with consideration and possession arrangements, representations and warranties, ongoing obligations and enhanced rental terms, documentation requirements, property schedule with complete details, and tripartite execution formalities – into one complete transfer of tenancy agreement that flows as a single, comprehensive legal document ready for execution and registration by all three parties.”
This is the complete transfer of tenancy agreement as generated by AI.
I have made manual edits in red to make it ready.
THIS AGREEMENT OF TRANSFER OF TENANCY made at Mumbai this ________________ day of _________ 2024 BETWEEN TECH SOLUTIONS INDIA LTD., a company registered under Companies Act, 1956 and having their office at Business Center, Andheri East, Mumbai-400069, hereinafter referred to as “THE OUTGOING TENANT” (which expression shall unless it be repugnant to the context or meaning thereof mean and include its successors and assigns) OF THE FIRST PART;
PREMIUM PROPERTIES LTD., a company duly registered under Indian Companies Act and having its office at Heritage Building, Nariman Point, Mumbai-400021 hereinafter referred to as “THE LANDLORDS” (Which expression shall unless it be repugnant to the context or meaning thereof mean and include its successors and assigns) OF THE SECOND PART; AND
DIGITAL MARKETING SOLUTIONS PVT. LTD., a company duly registered under The Companies Act of 1956 and having its registered office at Corporate Plaza, Bandra West, Mumbai 400 050, hereinafter referred to as “THE INCOMING TENANT” (Which expression shall unless it be repugnant to the context or meaning thereof mean and include its successors and assigns) OF THE THIRD PART;
WHEREAS: (a) The Landlords are the owners of the building known as “Heritage Tower” situated at the junction of Marine Drive and Nariman Point, Fort, Mumbai. The Landlords are also the owners of the following premises Ground floor admeasuring 2023sq.ft., Mezzanine floor admeasuring 796 sq.ft. totaling 2819 sq.ft. (hereinafter referred to as “the said office premises”) and which is more particularly described in the Schedule hereunder written;
(b) The Outgoing Tenant is the lawful tenant in respect of the office premises and its tenancy rights to the same are valid and subsisting. The rent receipt in respect of the said premises stands in the name of the Outgoing Tenant.
(c) The Board of Directors of the Outgoing Tenant has the power and authority to transfer or otherwise dispose of its tenancy rights and the right and privilege on such terms and conditions as the Board may think fit;
(d) The Outgoing Tenant has agreed to transfer its tenancy rights in respect of the said tenanted premises in favour of the Incoming Tenant upon obtaining the consent of the Landlord.
(e) The Outgoing Tenant has resolved to transfer its tenancy rights in favour of the incoming tenant and deliver vacant and peaceful possession thereof to the incoming tenant.
(f) The parties are desirous of recording the terms of transfer by executing this deed
NOW IT IS AGREED, DECLARED AND CONFIRMED BY AND BETWEEN THE PARTIES HERETO AS UNDER:—
- The Outgoing Tenant hereby transfers its
his - In consideration of the aforesaid transfer of tenancy, the Incoming Tenant has paid a sum of Rs. 15,00,000/- (Rupees Fifteen Lacs only ) to the Outgoing Tenant. The Outgoing Tenant hereby confirms and acknowledges receipt of the same in full and final satisfaction.
- The Outgoing Tenant has upon execution hereof handed over vacant and peaceful possession of the said premises described in the schedule herein above to the Incoming Tenant. Henceforth, the Outgoing Tenant has no right, title, interest and/or claim of whatsoever nature in the said premises or any part thereof. All the deposits, if any, earlier paid by the Outgoing Tenant to the Landlords stand transferred for the benefit of the Incoming Tenant.
- . The Outgoing Tenant has represented and assured to the Incoming Tenant that its
histenancy rights to the said premises in the capacity of tenant thereof is subsisting, clear, marketable and free from any encumbrances and reasonable doubts whatsoever, subject to the right of the Landlords, and that the said premises are not subject matter of any litigation or dispute, claim charge, lien whatsoever of any kind with any third party. The Outgoing Tenant representsstates - The Outgoing Tenant has
alreadytherent, taxes, cesses and other outgoings in respect of the said premises till the date hereof and there are no amounts outstanding againstrecoverable fromOoutgoingTtenant in respect thereof. Allthefurther rent, permitted increases and other outgoings shall be payable by the Incoming Tenant from the date hereof. - The Landlords have simultaneously on execution hereof admitted the Incoming Tenant as tenant of the said premises described in the schedule herein under in the said building owned by them and the Incoming Tenant agrees to pay the monthly rent to the Landlords from the date hereof at the enhanced rent of Rs. 1,25,000/- per month. On execution hereof and as aforestated the Outgoing Tenant has with the consent of the Landlords put the Incoming Tenant in possession of the said premises described in the schedule herein under as a lawful tenant thereof. The Incoming Tenant has on or before execution hereof paid three months advance rent to the Landlords and the receipt of the same is hereby acknowledged by the Landlords. The tenancy of the Incoming Tenant shall be governed by the provisions of the Maharashtra Rent Control Act, 1999. The Incoming Tenant shall use the said premises only for lawful commercial purposes.
- The Outgoing Tenant hereby agrees and covenants to execute all necessary writings, documents, deeds, forms, undertakings, affidavits and other assurances as may be required by the Incoming Tenant and/or the Landlords at the cost of the Incoming Tenant.
- The Incoming Tenant shall bear all expenses of stamp duty and registration charges of these presents. The payment of stamp duty and registration of this instrument is
thea condition precedent to the creation and grant of tenancy of the said premises.
IN WITNESS WHEREOF the parties have executed this Agreement on the day and year first above written.
SCHEDULE OF THE PROPERTY
The premises admeasuring 2023 sq.ft. ground floor and premises admeasuring 796 sq.ft. of mezzanine floor in the building known as Heritage Tower located at the junction of Marine Drive and Nariman Point, Fort Mumbai 400 021 and bearing C.S. No.892 of Fort Division within the Registration District and Sub District of Mumbai City and Mumbai Suburban.
SIGNED AND DELIVERED
by the withinnamed “The Outgoing Tenant”
TECH SOLUTIONS INDIA LTD.
Witnesses:
SIGNED AND DELIVERED
by the withinnamed “The Landlords”
PREMIUM PROPERTIES LTD.
Witnesses:
SIGNED AND DELIVERED
By the withinnamed “The Incoming Tenant”
DIGITAL MARKETING SOLUTIONS PVT. LTD.
Witnesses:
Conclusion
Mastering AI to draft a transfer of tenancy agreement is a game-changer for lawyers and law students alike.
By leveraging precise prompts and a structured approach, you can create comprehensive, legally sound three-party agreements in under 2 hours, saving days of complex legal work while ensuring compliance with state-specific laws like the Maharashtra Rent Control Act, 1999.
From defining tripartite party roles to outlining transfer consideration and possession procedures, AI streamlines the process, embedding statutory protections and practical enforceability.
Embrace this tool, and you will not only transform your workflow but also deliver agreements that safeguard all three parties from disputes, ensuring peace of mind for outgoing tenants, landlords, and incoming tenants alike.
Frequently Asked Questions (FAQs)
1. Do I need to understand tenancy laws to use AI for drafting a transfer agreement?
Basic knowledge of tenancy laws helps craft effective prompts, but AI can guide you if you provide clear transaction details. The article’s structured approach, with prompts for party roles and landlord consent, makes it accessible even for beginners.
2. How can I ensure an AI-drafted transfer agreement is legally enforceable in Maharashtra?
Include specific details (e.g., parties, property, transfer terms) and reference the Maharashtra Rent Control Act, 1999, in your prompt. The agreement must be registered with the sub-registrar and stamp duty paid to ensure enforceability under law.
3. Why is landlord consent critical in a transfer of tenancy agreement?
Under the Maharashtra Rent Control Act, 1999, a tenancy transfer without landlord consent is invalid and can lead to eviction. The agreement must document explicit consent, as in Arjun’s case, to protect all parties and ensure legal validity.
4. What happens if the outgoing tenant has unpaid dues before the transfer?
The outgoing tenant must clear all dues (e.g., rent, taxes) before transferring tenancy rights, or the landlord may reject the transfer.
5. Is registration mandatory for a transfer of a tenancy agreement in Maharashtra?
Yes, under the Registration Act, 1908, and the Maharashtra Rent Control Act, 1999, transfer agreements must be registered with the sub-registrar.
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