A resale flat with an existing tenant may offer a buyer immediate rental income, but it also creates practical and legal questions absent from a vacant sale. **Ownership, tenancy rights and physical possession are different matters.** A registered sale deed does not by itself guarantee that the flat becomes vacant on the completion date. That distinction should shape your budget, contract and legal review.
Establish exactly who occupies the flat
Ask whether the occupant is a tenant, licensee, family member or caretaker and obtain relevant written documents. Request the original tenancy or leave-and-license arrangement, amendments, payment receipts, security-deposit details and any notices already served. Ask who pays maintenance, electricity, water and municipal charges. Verify whether there are disputes or unpaid bills. Be cautious when a seller says that an occupant 'will leave before registration' without a documented and enforceable arrangement.
Examine the tenancy before signing the sale agreement
Read the duration, renewal terms, rent escalation, lock-in, deposit refund and restrictions on entry or inspection. A buyer may become a landlord under applicable law rather than receiving the freedom to use the home immediately. Section 109 of the Transfer of Property Act addresses rights of a lessor's transferee, while state-specific tenancy rules and contractual provisions can materially affect the result. Have a Kolkata property lawyer review which legal regime applies to the particular premises.
Decide whether you want rental income or vacant possession
These are different purchase strategies. If the investment case depends on rent, check actual receipts rather than advertised yield, and subtract maintenance, repairs, property tax, vacancy allowances and management costs. If you intend to move in, agree on how vacant possession will be delivered and what happens if it is not. Do not assume that a simple notice immediately removes an occupant; lawful possession can involve statutory protections and legal proceedings.
Document the transfer of rent and security deposits
A sale agreement should address the cut-off date for rent, prepaid rent, outstanding amounts and the security deposit held from the tenant. Decide who bears the obligation to refund the deposit when the tenancy ends and whether the corresponding funds are transferred to the new owner at closing. Notify the tenant through a documented process with legal advice, and provide clear payment instructions. Never demand rent twice for an overlapping period or ask the tenant to ignore an existing valid agreement.
