I have a flat on rent in navi mumbai, the agreement starts from 19th July, 2014, for a period of 11 months, now as according to the agreement it will expire in June 2015, i took this flat through a property dealer and he asked for 1.5 month rent as brokerage saying that "this is navi mumbai and here brokers charge for only 2 months rent as their fee" but when i insisted to make it for 1 month he agreed and now he is asking for 1 month rent as his brokerage and 10% hike in rent on renewal, although the flat is not up to the mark according to the current rent amount.
What is the agreement renewal fee and how much rent hike is allowed after 11 months period?
Can Broker charge us for 1 month rent for renewal?
What is the difference between 11 months agreement and 12 months agreement?
Are Mumbai and Navi Mumbai rental laws act different from each other?
What are the legal steps which can be taken bu us?
Asked 3 years ago in Property Law from Navi Mumbai, Maharashtra
1. The landlord is free to hike the rent to any amount. There is no law which puts a cap on the amount of annual hike which may take place. It does not make any sense to pay brokerage on renewal.
2. In Maharashtra a leave and license agreement requires registration.
3. If the flat is not up to mark then you may vacate it.
1) rent hike depends upon mutual agreement between parties
2) no need to pay brokerage on renewal .
3) leave and licence agreement are governed by provisions of Maharashtra Rent Act and are same in whole of Mahrashtra
UNDER Section 55 (1) of the Maharashtra Rent Control Act, 1999, any agreement for Leave and License or letting of any premises entered into between the landlord and the tenant or the licensee as the case may be should be in writing and should be registered under the Registration Act, 1908. Section 55 (2) imposes the responsibility of getting such agreement registered on the landlord.
4) you can have 11 months or 33 months agreement with the licensor with the renewal clause .
There is no law prescribing limit for brokerage charge at any place in India. It is mostly governed by the market practice in the particular place.
So you can negotiate on this account.
Leave and license agreement happens for 1 months only while ordinary rent agreement may span for 12 months or more.
Rent Act is same for all over Maharashtra.
Negotiate with broker or choose another property with new broker.
A. Generally Rent hike is depending upon the mutual discussion between both parties.
B. As per your state law, any leave and license agreement should be registered.
C. Generally, more than 11 months rent agreement needs to be registered. There is no particular law regarding 1 month commission towards the brokerage charge, you can bargain the same with the broker.
The broker is talking on behalf of the owner for 10% rent hike, so you can't do anything about this. After completion of 11 months, there will be fresh rent agreement between you and the owner and increase in 10% rent has to be mentioned in it. Rent agreements are as per rule made in the multiples of 11 months. Brokers in Navi Mumbai do charge 1.5 months rent as their commission(even in renewal) and it is up to you to negotiate it. The owners completely depend on the broker for their own convenience and unless the owner supports your ground, you can not take any action against the broker.
1. It appears that you have executed a leave and license agreement with your land lord and not a tenancy agreement. So, you are covered under Tenancy Act and is vulnerable to eviction based on your 11 months LL agreement,
2. Brokerage is charged for arranging the flat on rent or LL fee. It is one time matter and can not be charged again while being nenewed since he has not done anything for the said renewal,
3. 11 months agreement is generally LL agreement and is not required to be registered to be enforceable while any tenancy agreement for 12 months and above is required to be registered to be legally enforceable,
4. You do not come under Tenancy Agreement be it of Mumbai or New Mumbai,
5. Negotiate with the land lord and renew the LL agreement for next 11 months with agreeable term of increase of rent without paying anything to the broker.
In places other than Maharashtra, 11 months agreement period need not be registered, where as it is compulsory to register even eleven months agreement at your cost. In other states if an agreement is made for rent/lease purpose, it should be more than 12 months for which registration is made compulsory.
The renewal fee differs from one state to another. So better to clarify from some other persons.
The rental laws are uniform through Maharashtra.