Lease due diligence for Mumbai offices: what a tenant should check

Landlord's title and authority

Confirm that the person signing owns the premises or is authorised to lease them. Ask for the ownership documents, and for consents from co-owners or lenders where they are needed. Check for any dispute or encumbrance that could affect your use.

Building approvals

Ask to see the building's approvals and compliance documents. These typically include:

• Occupancy Certificate, and any part-occupation certificate.
• Fire safety clearances and their validity.
• Any pending notices, litigation or unauthorised construction.
• Permission for the use you intend, such as an office or a particular activity.

Physical and services review

Inspect the space and the building services. Check power capacity and backup, air conditioning, lifts, water, parking, access, signage rights and the condition of common areas. Have a technical adviser check the points that matter to your use.

Area and measurement

Confirm the carpet and chargeable areas, the loading factor and how the area is measured. Ask for a measurement or verification clause.

Lease terms to read closely

Review these with your lawyer:

• Term, lock-in, notice and exit, with penalties.
• Rent, escalation, deposit and refund terms.
• Maintenance and common area charges, and how they can change.
• Sub-letting, assignment and change of control.
• Fit-out rights and reinstatement.
• Renewal options and how renewed rent is set.

Registration, stamp duty and tax

A lease longer than one year generally needs registration, and stamp duty is payable. Rent may attract GST and TDS. Confirm the current position with your lawyer and tax adviser, and agree who bears which cost. This guide is general information and not legal, tax or investment advice.