Is is safe to rent an underagreement shop?

Q: I'm looking for a shop on rent. While searching some came across this shop which is already on rent to some other guy. The owner and the renter has a one year agreement in which 8 months has over.
Now the renter is renting the same shop, he said that it is possible and is called as underagreement.

Anyone knows whether such agreements can be made? If yes is is safe?

Thanks in advance

Ketan Dhad, Mumbai

31st August 2016

Rentals in Mumbai

under agreement

what is under agreement?

is it safe to buy/rent under agreement property?

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Replies (3)

@Ketan...
Sandeep is right. But it is always advisable to talk with the present tenant of the shop and if you are unable to do so then verify the rent agreement with a property lawyer and then proceed further. Try to talk with the present tenant and know the reason of under agreement. May be owner is asking for unreasonable charges or the shop has some light and water issue which may create a problem for you once you rented.

Arup rajan, Mumbai

1st September 2016

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Hi Ketan,
It means that someone has submitted an offer that was accepted by the owner of the property, so there currently is a rent agreement in place, but the deal has not yet closed. The deal could fall through for a number of reasons, so the shop still shows on the market as being under contract, rather than saying it's been rented.

Sandeep Mhatre, Mumbai

1st September 2016

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