ANOOP (SERVICE) 30 November 2009

Diff. in Lease/Rent Agreement

I want to hire out my flat to some one on lease/rent. Could any one reply what is the difference between lease agreement & rent agreement because I saw rent agreement of which generaly make for 11 months period whether lease agreement (may be for commercial use) for 1/2/3/5 years.

Why people general makes rent agrement for not beyond 11 months? Does it protect owner's right to vacant property or some other legal protections? If rent agreement makes beyond 11 months, what would impact on owner's right? Pls. specify.

Kindly also specify why people make lease agrement for beyond 11 months (i.e. 1/2/3/5 years) with regard to commercial property?

Kindly inform on which amount (Rs. 10/- or 100/- or any other amount based on rent/lease) of stamp papers both agreement can be made?

Thanks in advance.

Reply Follow

5 Replies

A V Vishal (Advocate) 30 November 2009

The fact is most states only allow a oral contract between the tenant and landlord to be legal for a short period of time, because oral contracts often go to court it is necessary to have a written lease or rental agreement. The rental or lease agreement is used to specify the length of tenancy, the amount to pay, the number of people living on the property, pets, who pays utilities, whether your allowed to sub lease the property, when the landlord can access the property, and who is responsible for paying attorney fees if there is a lawsuit.

The difference between a rental agreement and a lease agreement is a rental agreement is automatically renewed (usually on a month to month basis) and the landlord can change the terms with "proper written notice."

A lease agreement is only for a set term, usually 6 months or more. The lease agreement allows the tenant stay on the property as long as he/she pays the rent and complies with the terms. A lease agreement does not automatically renew itself.

JAGADEESH GOVIND (ADVOCATE) 30 November 2009

Dear Anoop,

There is no differance between rent and lease as both are meaning the same.

Sec.17(d) of the registration act stipulated that the lease deed should be registered if it exceeds one year.Hence to avoid registration we are normally confine the term into 11 months.

Regards,

JAGADEESH

1 Like

k.s.loganathan (CHIEF LEGAL OFFICER) 30 November 2009

HI ANOOP, THE MEANING LEASE AND RENT IS THE SAME MEANING. AS PER THE REGISTRATION ACT IF THE LEASE AGREEMENT IS BEYOND 11 MONTHS. IT IS MUST TO REGISTER. BELOW 11 MONTHS NO REGISTRATION IS REQUIRED. REGARDS K.S. LOGHANATHAN

ANOOP (SERVICE) 30 November 2009

Thanks all,

Could anyone confirm what impact would be if a agreement registere or not? Pls. also reply about the value of stamp papers to be used for it? Is it staraight way or depends on value of agreement.?

Thanks