Sale Leaseback Agreement for India

Sale Leaseback Agreement Template for India

This document template provides a comprehensive framework for Sale Leaseback Agreements under Indian law, incorporating requirements from the Transfer of Property Act, Registration Act, and relevant state-specific regulations. It structures both the sale transaction and the subsequent lease arrangement, ensuring compliance with Indian property laws, stamp duty requirements, and tax regulations. The agreement includes detailed provisions for property transfer, lease terms, maintenance responsibilities, and financial obligations, while incorporating specific Indian legal requirements for property transactions and lease arrangements.

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What is a Sale Leaseback Agreement?

A Sale Leaseback Agreement is a strategic financial arrangement where a property owner sells their property to an investor or financial institution and simultaneously leases it back for continued use. This document type is particularly relevant in the Indian market where businesses seek to unlock capital from their real estate assets while maintaining operational control. The agreement must comply with Indian property laws, including the Transfer of Property Act, 1882, Registration Act, 1908, and state-specific regulations. It's commonly used when companies need to improve their balance sheet, raise capital, or optimize their real estate portfolio while ensuring uninterrupted business operations. The document includes detailed provisions for both the sale and lease components, addressing aspects such as property valuation, lease terms, maintenance responsibilities, and compliance with local regulations.

What sections should be included in a Sale Leaseback Agreement?

1. Parties: Identification of the Seller/Lessee and Buyer/Lessor with complete details

2. Background: Context of the transaction, including property details and purpose of the sale-leaseback arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale Terms: Terms and conditions of the property sale, including purchase price and payment terms

5. Lease Terms: Essential lease provisions including duration, rent, and payment schedule

6. Property Handover: Process for initial sale closing and property handover

7. Rent and Other Payments: Detailed rent structure, security deposit, and other financial obligations

8. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements

9. Insurance and Taxes: Obligations regarding property insurance and payment of taxes

10. Use of Property: Permitted use of property and any restrictions

11. Assignment and Subletting: Rights and restrictions regarding assignment and subletting

12. Default and Remedies: Events of default and available remedies for both parties

13. Termination: Conditions and process for agreement termination

14. Representations and Warranties: Standard representations and warranties from both parties

15. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

16. Notices: Process and addresses for serving notices

17. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, etc.

What sections are optional to include in a Sale Leaseback Agreement?

1. Purchase Option: Terms for lessee to repurchase the property, included if agreed between parties

2. Financing Provisions: Included if the transaction involves third-party financing

3. Environmental Matters: Required for properties with potential environmental concerns or compliance requirements

4. Asset Management: Included for properties requiring specific management arrangements

5. Construction/Modification Rights: Needed if lessee requires rights to modify or construct on the property

6. Special Purpose Vehicle Provisions: Required if either party is an SPV or if SPV creation is part of the transaction

7. Tax Indemnification: Detailed tax responsibilities and indemnifications, if complex tax implications exist

8. Force Majeure: Specific force majeure provisions beyond standard clauses, if required for the property type

What schedules should be included in a Sale Leaseback Agreement?

1. Property Description: Detailed description of the property including boundaries, measurements, and title details

2. Rent Schedule: Detailed breakdown of rent payments, escalations, and payment dates

3. Condition Report: Documentation of property condition at the time of sale and lease commencement

4. Maintenance Schedule: Detailed breakdown of maintenance responsibilities between parties

5. Permitted Alterations: List of allowed modifications or improvements to the property

6. Service Charges: Breakdown of service charges and other operational costs

7. Insurance Requirements: Detailed insurance requirements and minimum coverage levels

8. Form of Notices: Template formats for various notices under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Document Type

Sales Contract

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Banking and Financial Services

Manufacturing

Retail

Hospitality

Healthcare

Education

Logistics and Warehousing

Office Space and Commercial Properties

Industrial

Technology and Data Centers

Relevant Teams

Legal

Finance

Real Estate

Operations

Facilities Management

Risk Management

Treasury

Corporate Development

Business Development

Property Management

Asset Management

Relevant Roles

Chief Financial Officer

Real Estate Manager

Property Manager

Legal Counsel

Corporate Lawyer

Finance Director

Asset Manager

Facilities Manager

Business Development Manager

Investment Manager

Treasury Manager

Risk Manager

Company Secretary

Operations Director

Real Estate Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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