Registration to Leave and License Agreement: A Guide for Tenants and Landlords
A Leave and License Agreement is a legal document that outlines the terms and conditions of using a property by a tenant from the landlord. The agreement is an essential document to ensure the rights and interests of both parties are protected and upheld throughout the stay of the tenant. However, registration of the Leave and License Agreement is equally important to ensure the validity and enforceability of the contract.
In India, the Registration Act, 1908 mandates that all Leave and License Agreements exceeding 11 months require registration with the sub-registrar of assurances. Non-registration of the agreement can lead to legal disputes and penalties. Hence, it is essential to understand the process of registration and the documents required to complete the process.
The following is a guide for tenants and landlords to register a Leave and License Agreement:
Step 1: Prepare the Agreement
The first step is to prepare the Leave and License Agreement between the tenant and landlord. The agreement should include the terms and conditions of tenancy, such as the rent amount, deposit amount, tenure of agreement, use of property, maintenance responsibilities, termination clauses, etc. Both parties should agree to the terms before proceeding to the next step.
Step 2: Stamp Duty and Registration Fees
The next step is to pay the stamp duty and registration fees on the Leave and License Agreement. The stamp duty amount varies from state to state, and it is essential to check the same with the local authorities. The registration fees is a nominal amount, and it should be paid along with stamp duty. The payment can be made online or through a bank challan.
Step 3: Submission of Documents
The next step is to submit the Leave and License Agreement along with the necessary documents to the sub-registrar of assurances. The documents required are:
1. Identity proof of landlord and tenant (Aadhar card, passport, voter ID, driving license, etc.)
2. Proof of ownership of the property (Sale deed or property card)
3. PAN card of the landlord
4. 2 passport size photographs of the landlord and tenant
5. Electricity bill or property tax receipt of the property
6. NOC from the society if the property is a part of the society.
Step 4: Verification and Registration
After the submission of documents, the sub-registrar of assurances will verify the documents and register the Leave and License Agreement. The verification process may take around 2-3 working days. Once the verification is complete, the landlord and tenant can collect the registered agreement from the sub-registrar office.
In conclusion, registration of a Leave and License Agreement is a crucial step for tenants and landlords to ensure the validity and enforceability of the agreement. The process of registration may seem cumbersome, but it is essential to protect the rights and interests of both parties. Tenants and landlords should follow the above steps and seek legal advice if necessary to avoid any legal disputes in the future.