Documentation of lease agreement
Ramesh Iyer
(Querist) 11 September 2012
This query is : Resolved
Dear Ma'm / Sir,
I have been living in a rented house in a Mumbai suburb for over 3 yrs, and have built a rapport with the owner, which made him renew the lease twice so far. This time however, he wishes to sell the house as he doesn't want to spend on its maintenance (including monthly charges to the housing society) and feels it is a burden on him. My lease expires shortly, so he informed me of his intention as above, but at my request he's agreed to renew the lease but for a short term of 4-5 months, after which he will need the house to be vacated by me.
The catch is that the estate agent who has been doing the documentation thus far, has fallen out of favour with my owner (though I just about managed a 'working relationship' with the agent). Neither of us knows any other trusted estate agent who can help us do the documentation for the lease agreement, that too for a short-term of 4-5 months. Also, due to my rapport with the owner, we have not registered the lease agreement in the past, nor do we intend to do so in future.
My query is, what are the requirements of documentation of a lease agreement (besides the Rs. 500 stamp paper, which I can buy from any notary outside the District Courts), and can both the lessor and the lessee do the same on their own ?
Also, as this is a short-term lease by mutual consent, we wish to avoid paying hefty brokerage. Thank you.
Regards,
Ramesh
ajay sethi
(Expert) 11 September 2012
you can do it on your own .agreement should mention the period of license . stamp paper would depnd upon the security deposit and licencse fees payable by you . need society permission .
Ramesh Iyer
(Querist) 11 September 2012
Thank you Mr. Sethi for you prompt response and inputs. I have had the lease agreement made with a Rs. 500 Stamp paper in the past 3 years I have been on lease in the present house. So, guess it will be the same this time too (with no major change in rent or deposit). Both the owner and I don't intend registering the lease agreement, hence license fees is perhaps not applicable. Society is aware of my stay, as well as my owner's rapport should get us the society permission without much hassle, I suppose.
Ramesh Iyer
(Querist) 12 September 2012
Mr. Sankar Narayan, I don't know which part of the country you live in, and whether you are a real estate agent yourself. But, I am strongly opposed to the norms in Mumbai, where one has to pay 2 months' rent as brokerage to the agent on a new lease deal, and 1 month's rent on every subsequent renewal. I feel this is robbery in broad daylight as, besides the documentation (which seems pretty simple for any educated person to manage by himself / herself) the agent adds no value in renewals, while the 2-month brokerage norm itself is atrocious. Hence, I would love to avoid the services of an estate agent if I can help it, even if it means sparing time to do the documentation on my own. It is certainly worth the cost savings.
The Real Estate Sector is completely unregulated, allowing for unscrupulous agents and builders to fleece ignorant clients (both when buying or renting).
M V Gupta
(Expert) 15 September 2012
Dear Mr. Iyer, I think u are calling the license agreement as lease agreement. As the land lord is agreeable to allow three months time to vacate the flat, just write a letter to him seeking time to vacate the flat and get his approval for the same. This would prevent u from being regarded as trespasser. When both parties have understanding the above should be sufficient.
Ramesh Iyer
(Querist) 15 September 2012
Dear Mr. Gupta,
Thank you for your advise. In the past I have had a proper Leave & License Agreement between myself and my landlord, but it was done through a broker. Now, both my landlord and I don't wish to avail of the said broker's services due to certain past experiences and attitude issues. However, my landlord wishes to have proper documentation done for Leave & License Agreement for a short-term, as he will require the house 4-5 months, after he returns from abroad. Hence, wanted to know if the documentation can be managed by me on my own. Moreover, estate agents in Mumbai take atleast a month's rent as brokerage on lease renewals, which is exorbitant cost, particularly for a short-term lease. I am aware that many States in India don't have this practice, as brokers don't get any commission on renewals. Since the Real Estate sector is unregulated, agents make tall claims and charge gullible clients.
M V Gupta
(Expert) 18 September 2012
Apart from the LL needing the premises after 4 to 5 months, there is the question of time required by u to get alternate accommodation, which also requires a good amount of time in Mumbai. Hence it would be advisable for u to enter into 11 months agreement. U can adopt the agreement format adopted by you when u got he premises originally with suitable modifications.
M V Gupta
(Expert) 18 September 2012
Apart from the LL needing the premises after 4 to 5 months, there is the question of time required by u to get alternate accommodation, which also requires a good amount of time in Mumbai. Hence it would be advisable for u to enter into 11 months agreement. U can adopt the agreement format adopted by you when u got he premises originally with suitable modifications.
Raj Kumar Makkad
(Expert) 02 December 2012
Nothing to add in the wise replies of the experts,
Ramesh Iyer
(Querist) 03 December 2012
Thank you for your considered opinions / advise. This matter has been settled, as I have moved into a relative's premises recently.
