06 Feb2017
Agency Policy
POLICY ON RENTAL OF LAND/COMMERCIAL UNITS (Review October 2010)
The policy is aimed at standardising terms and conditions of rental of land and space/commercial units.
The policy will also result in committed and capable people being chosen to rent PDC land and space/commercial units,besides ensuring that there are no problems of default in payments or any violation of rental conditions.
| Type of Rental | Security Deposit (SD) | Bank Guarantee (BG) | Personal Guarantee (PG) | ||||||
| < 3 months | Payable | Not payable | Not payable | ||||||
| - | Full payment of rental + deposit for damage (equivalent to 1 month rental) | ||||||||
| 4 - 6 months | Payable | Not payable | Not payable | ||||||
| - | Amount equivalent to 3 months rental + first month rental | ||||||||
| > 6 months till 3 years | Payable | Choice | Choice | ||||||
| - | Amount equivalent to 3 months rental + deposit for damage (for high rise buildings). | - | Maximum amount equivalent to 12 months rental. | - | Is signed by at least 2 directors (1 Managing Director and 1 Majority Equity Owner). | ||||
| - | Minimum amount equivalent to rental period (if the rental is less than a year). | - | Companies are required to give Corporate Guarantee (CG). | ||||||
| - | SD is increased to 6 months | ||||||||
| > 3 years and above | Payable | Payable | Payable | ||||||
| - | Amount equivalent to 6 months rental + first month rental | - | Amount equivalent to 12 months rental | ||||||
| - | Is signed by at least 2 directors. | ||||||||
| - | Listed Companies are required to give Corporate Guarantee (CG). | ||||||||
| Items | Notes | ||
| Acceptance period of tender | Private - 14 days | ||
| Government - 30 days | |||
| - | In the event of late submission / appeal of rental, it is up to the discretion of PDC to approve | ||
| Legal payments | Applicants are required to bear the cost of legal fees for the transactions as well as for any legal actions. | ||
| Notice of Demand (To Remedy Breach) | 14 days | ||
| Interest Rate | 8 % | ||
| Date of Site Possession | After signing the Agreement and with full payment of SD / BG / Safe Deposit / First Month Rental Payment / Stamp Duty | ||
| Option to extend rental period | It is not automatic and will be based on consideration by PDC and the imposition of new terms and conditions at the time of application. | ||
| Aproval of application for extention of period - Payment - Completion of Project - Surrender of Site |
< 3 months - Senior Manager, Property Division > 3 months - General Manager PDC
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| Period of Surrender of Site | 30 Days | ||
| Notice Period of Expiry of Rental | Rental < 3 years - 1 month Rental > 3 years - 3 months |
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