For 11 month agreement registration and payment of stamp duty is not mandatory.
Just a notarized agreement would suffice for which your father would not have to go anywhere.
Hello, We live in south Delhi. We have a tenant who wants to renew the lease for another 11 months. We paid 2% stamp duty and got the agreement signed the first tiime. We did not register the agreement as my father is very old (87) and can not go to the registration office. Now what should we do to renew the lease by another 11 months. we have been adviced by someone that we can simple write on the same agreement that we had 11 months ago that we are renewing the agreement without paying anymore stamp duty. But, I think this information is not correct. Please guide me what we need to do without going to registration office as my father(owner) is old and can not go there.
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For 11 month agreement registration and payment of stamp duty is not mandatory.
Just a notarized agreement would suffice for which your father would not have to go anywhere.
Should we simple get the renewal on the same agreement as before. Would this renewal but be a continuation of the agreement and cross the 11 month norms by the law. The tenant can always come back and say he lived for more than 11 months in continuity and therefore the laws for 11 months or less should not be applied. Some advised us to start the second 11 month tenure(renewal) after a gap of 15 days or so. Are you saying that stamp duty is not required for 11 months or less agreements? can you please elaborate as to why the government charges stamp duty then if 11 months lease is exempt from it.
1) through Power of attorney behalf of your father you can execute.
2)My advice is that entering into a tenancy agreement will safeguard the landlord right. Let the premises based upon the written agreement would reduce burden to the landlord. If the written agreement have not registered it will be expired after 11 months.
Registration of documents not essentially required for 11 months agreement. So you can proceed incurring a 11 month rent agreement.
1)you ought to enter into fresh agreement for period of 11 months
2) . the agreement should duly stamped and registered
3) in alternative get agreement duly stamped and notarised
you can enter into agreement after gap of 15 days or so
2) stamp duty is required for 11 months agreement
Should we pay stamp duty of 2% for the renewal term? I am getting conflicting response on this form. Some Lawyers are saying and some are saying no. Please tell me YES OR NO with confidence otherwise do not answer if not sure. Should the renewal be done on the same agreement, if yes, how will we notarize it again? Should there be a gap of 15 days between the end of the first agreements and the start(renewal) of the second agreement?
the stamp duty on leave and licence agreement would be 2 per cent of annual rent
2) there is no harm in giving gap of 15 days in fresh agreement
3) agreement should be duly notarised
Dear Client,
There`s no need to gt register lease agreement up to 11 months. Execute renewed agreement with same terms and conditions + revision of rent and get it notarized. No stamp duty payable. Better execute fresh agreement and get it notorised.
Not exempted but optional up to 11 months. No gap required
You need to again execute a fresh lease agreement and register it. Registration is compulsory. Nowadays you don't have to personally go to registration office the documents can be registered from home.
1. sir firstly there is no such law that says that leases or leave and licences can only be for 11 months
2. this confusion stems from the provisions of sections 17 and 18 of the Registration Act which say that any lease exceeding one year is compulsorily registrable
3. that is why in order to avoid the registration liability, people began to execute leases of less than 1 year
4. now a document is registered by the registration authority only if the applicable stamp duty is paid on it
5. since in your case proper stamp duty was paid on the document, I do not see reason why the document was not registered, except for the fact that the lessor was unable to complete the registration formalities due to his advanced age
6. even if the lessor cannot attend the registration office, nothing stops hims from giving a power of attorney to a trusted person who can complete registration formalities on his behalf
7. in your case, your father can sign the document and also a power of attorney in your favour and give both to you so that you can lodge the same with the registration office and have the lease deed registered
8. a registered lease deed confers benefit and protection for the owner lessor. Otherwise in certain case some dishonest tenants dispute the terms of the lease on the basis that its not registered an merely notorised. Such disputes or claims cannot be raised if the lease document is duly registered
9. if the tenant wishes to continue in your premises for another term, then it is advisable to have a fresh lease deed prepared which must be duly stamped and registered. Ofcourse the stamp duty has to be paid by the tenant
10. if as per your assessment you find that the tenant is genuine, then you can also execute a lease document exceeding 11 months so that the parties do not have to be inconvenienced everytime when the lease expires and a fresh lease is required to be registered upon such expiry
11. so whether the lease is for less than a year or more than a year, it is always good to have the lease document registered
12. you can make a lease deed of max upto 3 years as a good practice if you are confident about the tenant with adequate protection clauses in the document in the event of breach by tenant so that you can terminate the lease during its tenure as well
13. also wherever in my response i have used the word 'lease', that should be construed as 'leave and license'. Because the former is a greater right whereas the latter is a lesser right which gives only a right to use and occupy the premises without any right of transfer to the tenant
14. so please have a fresh leave and license agreement prepared, stamp it and register it
15. hope this clears your doubt
For any agreement which is for the duration of 11 months or less no registration is required. So in your case, you may go ahead and get a lease deed for 11 months wherein the registration is not required
A 11 month leave and license agreement can be prepared on the 100 rs stamp paper and you can get same notarised. Donot extend on the old agreement.
See don't make a lease deed make a leave and license agreement after gap of 15 days as starting date. You are not required to register same just get same notarised.
You can make agreement on 100 Rs. stamp paper.
A new agreement is required to be made and notarised. The notary will do same.
Yes gap of 15 days in starting of new agreement.
Actually 11 months rental agreement need not be mandatorily registered nor any stamp duty need be paid.
Hence you can prepare a fresh 11 months rental agreement to solve the issue.
As I opined earlier, the 11 months rental agreement need not be registered mandatorily and no stamp duty need to be paid for this type of agreement.
Most rent agreements are signed for 11 months so that they can avoid stamp duty and other charges. According to the Registration Act, 1908, the registration of a lease agreement is mandatory if the leasing period is more than 12 months.
“It is not compulsory to make a rent agreement only for 11 months. Renewable/extendable agreements for three to five years can also be made and registered. However, the stamp duty and registration charges for longer duration may differ.”
One reason stated for 11 month agreement is to skip the registration process. “As per the Registration Act, 1908, clause (d) of sub-section (1), registration of the property that is on lease for one year or more than a year is compulsory.
A rental agreement is a legal document that binds the owner of the property and tenant and safeguards the interest of both the parties.
It is important as it protects the rights of a landlord as well as the tenant. It prevents the unnecessary hikes and eviction without prior notice of minimum one month.”
The section 17 of Registration Act provides leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent; months requires compulsory Registration. However a lease agreement of 11 months does not require compulsory Registration.
Hence instead of renewing the agreement, you may enter into a fresh agreement to avoid registration.