Divide and Rent: When and How Non-Residential Real Estate Can be Leased in Parts?

Not always the tenants are ready to rent the entire office building or even the entire office: sometimes it is enough for them only a part of the non-residential premises. True, at the conclusion of such a contract, questions inevitably arise. How to identify the subject? What criteria should a part of the premises meet in order to be leased? Why divide the unfinished property between tenants fail? Answers to them (unfortunately, not always unequivocal) are provided by judicial practice.

Among the owners of commercial real estate, it is quite common practice to lease non-residential premises not fully, but only parts of them. Often this is due to the fact that the transfer of the entire object is impossible due to the need to ensure the regime of common use. For example, in a hotel lobby, which is a single room, a small restaurant can be placed, which will occupy only a part of the hall, with the possibility of using the rest, unoccupied, part by other persons (the owner, hotel guests, tenants, etc.).

The owner will be able to use the unused part of the non-residential premises for the placement of other objects on lease terms or for their own needs. This situation occurs everywhere due to the need for economical and rational use of non-residential premises, the owner achieving the maximum economic effect from the use of its commercial real estate.

office space in Gurgaon

For renting office space can be divided

Ownership gives the owner of office space in Gurgaon the opportunity to carry out with it, if necessary, three operations, namely: separation, merger, and separation. Under the division should be understood the cessation of the existence of the former property and the emergence on its basis of two or more separate objects.

Merging is an inverse operation when several are combined into one object. When allocating a real estate object, the old object continues to exist as an independent accounting object (only its quantitative characteristics change as a result of the allocation of a part of the object), and thus another (new) separate real estate object appears. The current legislation of the Russian Federation considers such objects as newly created, which means that the right to them arises from the moment of their state registration (Article 219 of the Civil Code of the Russian Federation). After registration, it is possible to dispose of such objects.

office space in Noida

In order to separate a separate room from the office space in Noida belonging to it and lease it, the owner must first carry out technical and cadastral registration of the object, register the right to it. And only after he has formalized the ownership of a part of the premises, he will be able to transfer it to a long-term lease, subject to the state registration of the relevant agreement. Rent for the long term, of course, can be issued without registration. For example, by entering into a contract for an indefinite period, which does not need state registration, or for a period of less than a year with the condition of automatic renewal.

In addition, it is possible to conclude a contract for several years, bearing in mind the approach by which an unregistered long-term lease contract for real estate still creates a binding bond between its parties, but does not give them the right to oppose it to third parties.

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