Why rent agreements are usually of 11 months only livemint. The usual time period is six to eleven consecutive months in one calendar year. Hi all, its a very interesting and important question. Leave and license agreements have similar elements, but whats important is the wording. Leave and license agreement this agreement of leave and license is made and entered into at mumbai on this day of may 2006, mr, both indian inhabitants presently residing at, hereinafter referred to as the licensor which expression shall, unless it be repugnant to the context or the meaning thereof be deemed to mean and include their respective legal heirs, executors, administrators and. Here we explain the process to make a leave and license agreement in india. A properly stamped and registered leave and license agreement is a valid evidence.
Sample leave and license agreement rental agreement at. Yes in the earlier days 11 months agreements were being signed. Feb, 2017 animated video created using animaker leave and license offers rent agreement registration services in pune at affordable prices and doorstep service. In addition to the stamp duty, registration fee of rs. Leave and license agreement why eleven months only by advocate s. If the agreement is for 11 months, and the said 11 months is mentioned in teh agreement, then you will have to pay stamp duty according to 11 months rent and deposit.
In the notarized leave and license agreement, the duration should not exceed 12 months and for the safer side, it became a practice to make an agreement for 11 months. In online leave and license registration, citizens have to fill required information only in igr online portal for eregistration and draft is automatically generated at the end. Imprisonment of three months or with fine not exceeding rs. In the absence of a written registered agreement, contention of the tenant about the terms and conditions on which the premises have been given either on leave and license or even let out shall prevail. If we can get mobiles, foods, cars and lingeries online than why not our documents. Leave and license agreement registration online youtube. For example, if you enter into a leave and licence agreement for 24 months, with a monthly rent of rs 25,000 and a refundable deposit of rs five lakhs, you will have to pay a stamp duty of rs 1,750 being 0. Once the document is executed by giving consent for biometrics of licensor, licensee and two identifiers then the document has to be submitted online for registration. Further is it necessary to get the residential address of the licensee in the agreement.
Board resolution format for leave and license agreement a company may have taken some premises on rent lease from the landlord of that property. Hi i am going to doleave and license agreement for one of flat for 11 month rent in maharashtra i would like to know is registration for leave and license agree. Leave and license agreement format download free legal. Disadvantages of 11 months agreement most of the times landlord increases the monthly compensation after 11 months instead of one year, after the expiration of 11 months. Hence the occupancy is granted on leave and licence basis and not on tenancy basis. If rent agreement tenure is more than 11 months then variable. Real estate brokers usually work on a 1 month brokerage fee for every one year of agreement term. We as a service provider fill all the details in proper format to ensure that all details are filled wherever required. The question arises whether it can not be for more than. This form can be used for rental lease agreement of 11 months in india.
It is binding by law to register leave and license agreement. There are 2 comments on registration of leave and license agreement in maharashtra. The stamp duty in case of leave and license agreements for a term of more than 5 years, but upto 10 years shall be 3% of the average annual rent. Nov 09, 2017 hi all, its a very interesting and important question. Leave and license agreement accommodation times p ltd. A leave and license agreement is an instrumentagreement whe rein the licensor allows the l icensee to temporarily occupy and use one portion of immovab le property for carrying on hi s business for residential pur poses. Registration for leave and license agreement for 11 month. Why are residential rental agreements made for a period of 11.
Under the provisions of section 55 of the maharashtra rent control act,1999 a leave and licence agreement is required to be registered under the registration act,1908,which in turn provides for registration with the subregistrar. Dec 29, 2011 29 december 2011 registration of leave and license agreement for a term of less than 12 months is not compulsary. Stamp duty and registration fee are an important component of registered agreement. This is the reason why people enter in to ll agreement for a period if 11 months and thereafter renews it for next 11 months, 3. A rental agreement synonymous with leave and license agreement is essential for avoiding any dispute between property owner and the tenant. Citizen can, 1 prepare the agreement 5 submit it for registration.
What is leave and license agreement leave and license. At present, leave and license is made online in maharashtra and govt. Leave and license is usually granted for a period of 11 months. Section 17 of the registration act, you are required to register your leave and license. The main reason behind the 11 month agreement is to skip the registration process. Such terms and conditions are mentioned in the clauses of a leave and license agreement between the parties. The licensor grants the leave and license to the licensee fo r a minimum period of 11 month s and for this, the licensee s hall pay to the licensor a fix ed. What is usually signed is a leave and license agreement. Sample agreement leave and license registration services. A clause on escalation of license fee can be included in a leave and license agreement and it will not convert a license into a lease. As per the registration act, 1908, clause d of subsection 1. The leave and license are usually granted to the licensee for a period of 11 months. The module is developed and made available by the department of stamps and registration.
Difference between notarized and registered leave and. If the agreement is for 11 months, and the said 11 months is mentioned in teh agreement, then you will have to pay stamp duty according to. This is a rental leave and license agreement form, this form is especially applicable only in india. The amount of monthly compensation license fee shall be payable within first five days of the concerned month of leave and license. Continuous stay as licensee creates problem since the licensee starts claiming to be a tenant as per tenancy act which gives him tenancy right, 4. Hi, leave and license agreement registration has been simplified with many. According to the registration act, 1908, the registration of a lease agreement is mandatory if.
Property registration in maharashtra proposed to go online registration of property to go soon online with aadhar linked authentication. The licensor grants the leave and license to the licensee fo r a minimum period of 11 month s and for this, the licensee s hall pay to the licensor a fix ed amount of license feerent money. The month of the license shall be as per the english calendar month. Usually when your drafting of leave and licence agreement tenure is 11 month. Why rent agreements are usually of 11 months only 2 min read. I am planning to rent out my place which is an industrial premise for a period of 60 months is it proper to do so or should i get it done for every 11 months as such. On the other hand, getting a leave and license agreement. If in accordance with section 17 of the registration act, you are required to register your leave and license agreement, you must do so. It provides facility of online registration of leave and license agreement to citizen. So thats how the 11 months agreement rent goes to the landlord and the 1 month rent goes to the broker as brokerage. When printing this form you have to print the first page on an rs. Leave and license agreement procedure in india mylegalwork. A leave and licence agreement is a document that bestows the licensee with the permission to occupy the licensors property. Sample agreement in online leave and license registration, citizens have to fill required information only in igr online portal for e registration and draft is automatically generated at the end.
Sample leave and license agreement rental agreement at your. Tenure the rent agreement can be maximum for 5 years 60 months. This agreement shall remain in force for the period of 11 months 29 days from the date of commencement mentioned above. Free indian 11 months rental lease agreement form pdf. If an agreement is registered, stamp duty and registration fee needs to be paid for it. Executing the leave and licence agreement before a public notary is not enough to comply with the law. Download free sample formdocument for leave and license agreement in word format. This entry was posted in leave and license and tagged leave and license stamp duty and registration.
This agreement is to be registered and the expenditure of stamp. This kind of agreement is specific to the city of mumbai where owner prefer to use this agreement rather than a standard tenancy or lease agreement in order to save on the stamp duty and registration charges. Such an agreement makes eviction easier and is general provides the landlord with greater power. Coming soon, 11month rent agreement the new indian express. However, in a state like maharashtra if an automatic renewal clause is incorporated in the leave and license agreement which makes the leave and license agreement for a period of more than 5 years, then stamp. Here, few of the important documentation to be carried out are execution of an agreement. Difference between notarized and registered leave and license. Landlords benefit your property becomes safe from any tenancy claims by licensee. Stamp duty and registration fee for leave and license agreement. Here, few of the important documentation to be carried out are execution of an agreement and passing of a board resolution in this regard. Animated video created using animaker leave and license offers rent agreement registration services in. More information can be seen on article appearing in time of india, pune dated. How to make online rent agreement or e registration of leave and. It gives a limited right to occupy and use the premises for a defined period of time.
Leave and license agreement registered as document no. For instance, in delhi, for a lease of up to five years, the. So thats how the 11 months agreement rent goes to the landlord and the 1. A leave and license agreement is required to be printed on stamp paper of correct value, as per the laws in different states. The website, founded in 20, has motto to bring all legal documents in a simple and convenient way. Stamp duty and registration fee for leave and license.
This suits the property owner just fine as it gives fewer rights to the tenant. That the licensees shall pay to the licensor the following amount per month. One reason stated for 11 month agreement is to skip the registration process. Landloard being the owner tenant being the license what shall be the maximum tenure of rent agreement. Mar 05, 20 i am planning to rent out my place which is an industrial premise for a period of 60 months is it proper to do so or should i get it done for every 11 months as such. The agreement must be registered before the subregistrar at the. Leave and license registration services online rent. Leave and license agreement this agreement of leave and license is made and entered into at mumbai on this day of may 2006, mr, both indian inhabitants presently residing at, hereinafter referred to as the licensor which expression shall, unless it be repugnant to the context or the meaning thereof be deemed to mean and include their respective legal heirs.
This agreement essentially grants permission to reside within premises, for the duration defined in the agreement, without granting the licensee any stake or interest in the property. Why are residential rental agreements made for a period of. Most rent agreements are signed for 11 months so that they can avoid stamp duty and other charges. And whereas the licensee has approached to the licensor with a request to renew the licensee to temporarily occupy and use the said flat for residential purpose on leave and license basis for a period of 11 months commencing from 14th april 2008 to th march 2009. The license hereby granted to the licensee is a revocable and non transferable one, which is to terminated on the expiry of eleven 11 months as stated hereinabove or earlier, subject to the terms and conditions as laid down in this agreement. According to the clause d subsection 1 of the registration act, 1908, registration of the property that is on lease for a year or more is compulsory. Board resolution format for leave and license agreement. Calculate charges for registered leave and license agreement in maharashtra. We provide services for drafting and registration of leave and license agreement all over. This agreement has to b e mandatorily registered befor e the sub registrar of assuran ces at the place of jurisdicti on where the property is locat ed.