Renting out property
Capt RK Sharma
(Querist) 17 November 2012
This query is : Resolved
I have to give my DDA flat in Delhi on rent for two years. Can anyone tell me what is the difference between lease deed, rent agreement, leave and license agreement. Which is better from landlord's point of view? How much stamp duty is applicable for registering same and who should bear it ie landlord or tenant. Thanks.
Raj Kumar Makkad
(Expert) 17 November 2012
License is defined and governed under the provisions of the Easements Act and lease is defined and goverend under the provisions of the Transfer of Property Act and Rent Agreement shall be goverend by the respective Rent Legislations as prevelent in the State like in Gujarat the Bombay Rent Act is applicable.
Furhter, under the Easement Act, the period for which license can be granted is not prescribed. However, as a general notion and understanding a license being a mere permission to use a property, is granted for a limited period but not necessarily for 11 months.
Furthermore, registration of a license will depend upon the respecitve State Laws as in Gujarat, a license is not required to be mandatorily registered.
Rental agreement is an agreement where the rent is below a fixed amount i.e. Rs.1000/- and it is for a period of eleven months and which need not be registered. The rental agreement is governed by the Rent Control Act prevailing in the local area where the property is situated.
It now depends upon you to chose either of three as per your convenience. Even then leave and licesne is best for you. The registration charges are different from State to State which are to be borne by tenant/licensee.
