Enter into leave and licence agreement for 33 months
2) it can contain a renewal clause that agreement can be renewed with mutual consent of parties
3) you can have incremental clause in agreement
Leave and License agreement Opinion
I am looking to rent out a shop space on leave and license for 3 years in Kolkata. Please suggest which option I should go for and what I need to do in each option. 1) A leave and license agreement issued for 33 months with increments every 11 months 2) 3 separate leave and license agreement issued each with 11 months duration
Asked 1 year ago in Property Law
Religion: Hindu
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11 Answers
Hello,
- It is advisable to enter into one leave and license Agreement for 33 months with enhanced rent after 11 months.
- There must be a specific clause with mention of the month/date on which the rent increases and the amount of rent for clarity.
For 33 months leave and license agreement, does it need to be registered? If not registered, is the agreement still valid?
Asked 1 year ago
Hello,
- Registered or not registered, the Agreement is valid provided it is signed by both the parties and the attesting witnesses.
- It is however, always advisable to have the Agreement registered with both the parties bearing equal share of the charges involved as a registered document will have greater validity in case of a dispute and in most cases, the police and the Housing societies insist on having the Agreement registered. Registration is highly recommended.
Registration is mandatory
1. A Leave & License Agreement for 11 months validity is the best legal option, as it need not be registered. Moreover, by the end of 11 months' you could have created opinion about the tenant and based on your opinion, you can either continue with a fresh 11 months' Leave & License Agreement.
2. For 33 months' Leave & License Agreement it has to be compulsorily registered in the jurisdictional Sub Registrar's Office. In case it's not registered it would not be legally valid.
This agreement is usually for a period of 11 months and can be renewed. The leave and license agreement gives the person the right to use the property for their own purposes. However, if there is a disagreement between the owner and the person using the property, the agreement can be terminated.
The leave and license agreement – the maximum period is 60 months.
A leave and license agreement or even the lease agreement or rental agreement for a period of 11 months are to be entered into by a registered document alone, an unregistered document for any type of above referred monthly rentals is not valid in law.
Therefore it is pertinent to register the 11 months leave and license agreement too.
You can execute a single document for 3 yrs with mandatory registration of the same
In Kolkata, a leave and license agreement for a period of more than 11 months must be registered with the Office of the Sub-Registrar of Assurances under the Registration Act, 1908. Therefore, if you opt for the first option of a leave and license agreement for 33 months, it must be registered to be legally valid.
On the other hand, if you opt for three separate leave and license agreements of 11 months each, they do not need to be registered as they are within the permissible period of 11 months. However, you will need to ensure that each agreement clearly specifies the duration of 11 months and the renewal terms for each subsequent agreement.
In terms of what you need to do for each option, if you opt for the 33 months leave and license agreement, you will need to register it with the Sub-Registrar's Office. The registration process involves payment of stamp duty and registration fees, as well as submitting the agreement along with the required documents.
If you opt for the three separate leave and license agreements of 11 months each, you will need to execute each agreement separately and ensure that they are renewed before the end of each 11 month period.
It is important to note that the terms and conditions of the leave and license agreement should be clearly stated in writing to avoid any disputes in the future. It is recommended that you seek legal advice to ensure that the agreement is legally binding and enforceable.
- You can registered the agreement for 33 months after giving the conditions of increments
- Further, you cannot registered or enter into an agreement for 11 months for the duration of 3 years on one date , however it may be for 11 months and further you can renew for further 11 months .
- If you are going to enter into an agreement for 3 years , then registration is mandatory after paying stamp duty of 2% of the total rent of the period.
I agreement carrying increment clause in every 11 months. It must be registered if for more than 11 months.
