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Anil (b)     09 July 2008

Query on Rent / Lease agreements

 

All the RENT agreements I have seen mention that the LEASE agreement is for 11 months. My question in this regard are:


1)Why is it that eventhough the title of the agreement says "RENT AGREEMENT" the wordings in the agreement are"LEASE AGREEMENT".


2)Why the lease agreement is always entered into for 11 months only?


3)Normally the agreement so entered are not renewed after 11 months eventhough the tenant continues to occupy the property. What is the effect of non renewal?


4)How does one determine the amount of stamp paper to be used for rent agreement?

 

Kindly answer questionwise.



Learning

 9 Replies

amit gupta_lawyer (lawyer)     09 July 2008


  1. well first i must tell u that its lease agreement only which is an appropriate legal word and rent agreement we use in noraml practice, rent is the amount pay by the lesser to lesee for the enjoyment of lease.

  2. now any lease less than a year is not required to get registered

  3. well in case the agreement is not renewed then tenant is totally at the mercy of landlord as there is no rights of tenant agreed on that date by the landlord and the previous agreement automatically lapse if there is a clause of mandatory renewal after completion of term of lease.

  4. well it depend upon the term of lease

arunprakaash.m. (advocate)     09 July 2008

This usual practice is prevalence in Maharashta and Gujarat.


There is no major difference between lease and rent .


lease may also given for mobable and immovable  property.


Rental agreement relates to properties owened by the landlords. There exists s landlord tenent relationship.


Whereas owenership property is concerned lessor and lessee is used.


 The rental agreement is usually made for 11 months because previously under the maharashta rent control act 1999 , 11 month period agreement was exempted for stamp duty and registration. And also the landlords does not keep a tenent for a long period of time fearint that rent control law will be made applicable tous.


If you want to renewal of the rental agreement there should be a renewal clause.


for stamp duty refer Art 36 A of the Bombay stamp act 1951

Anil (b)     09 July 2008

Thank you sir. I have few more questions on above topic:


 


1) Does the lease agreement has to be registered if it exceeds 11 months? With whom it has to be registered?

 


2) Does the agreement has to registered AGAIN on its renewal? If there is no clause of renewal is only alternative is to go for new agreement?


 


3)Suppose an agreement is for 11 months and it is renewed for another 2 months, In this case should one treat total term of agreement as 13 months and register the agreement?


 


4)In case of non renewal of a 11 months lease agreement, does all terms like notice period for vacation etc. cease to be legally binding?

 


5)How does one determine registration charges?


 


6)Does one has to refer to Stamp Act to determine the value of stamp paper to be used for agreement? If yes, is stamp Act different in different states?


 




Kindly answer questionwise.


 

Guest (n/a)     10 July 2008

Dear Anil, Mr. Amit Gupta has given the reply for your first query.


Your second question is with 6 parts. (1) With Registrar of Registration Department in your area. (2) If it is for a period register after the period (3) Retrospective validity is doubtful (4) The Rent Control Act provisions will apply in the absence of an agreement and its conditions and procedures. (5) That depends on lacal Government rules and orders(6) May not be different in different states. But you have to verify. Kerala state has seperate rules and laws for registration of documents. Adv.K.C.Suresh

K.C.Suresh (Advocate)     10 July 2008


Dear Anil, Mr. Amit Gupta has given the reply for your first query.


Your second question is with 6 parts. (1) With Registrar of Registration Department in your area. (2) If it is for a period register after the period (3) Retrospective validity is doubtful (4) The Rent Control Act provisions will apply in the absence of an agreement and its conditions and procedures. (5) That depends on lacal Government rules and orders(6) May not be different in different states. But you have to verify. Kerala state has seperate rules and laws for registration of documents. Adv.K.C.Suresh, Kerala

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     10 July 2008

With all the opinions pl add following.


1) Registration is essential irrespective of period.


2) If lease is more that twelve moths it ceases to be leave and liscence agreement and landlord looses the right of getting possession through quick procedures and hence agreements are done for eleven months.


3) After even a single day of one year the tanent get rights to be a statutary tanent and with cetain exceptions you can not evict .


4) Some people have mis conception that extention of eleven months lease or rent agreements are legal. A big NO.


5) Pl note that after twelve months the tanent can not be eviccted and and extremely limited scope of raising rent.

arunprakaash.m. (advocate)     10 July 2008

Now under the new amendment in 2001 even an agreement of leave and licence for a period of 11 months are also should be registered.


For further extention you have to go for new agreement with same procedure.


For stamp duty  and registration refer concerned state laws.

Anil (b)     14 July 2008

Thank you all for your inputs

ANAYARA RK JAYAN (licensed document writer)     28 August 2009

Originally posted by :Guest
" Dear Anil, Mr. Amit Gupta has given the reply for your first query.Your second question is with 6 parts. (1) With Registrar of Registration Department in your area. (2) If it is for a period register after the period (3) Retrospective validity is doubtful (4) The Rent Control Act provisions will apply in the absence of an agreement and its conditions and procedures. (5) That depends on lacal Government rules and orders(6) May not be different in different states. But you have to verify. Kerala state has seperate rules and laws for registration of documents. Adv.K.C.Suresh "


 


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