• Best way to let shops for rent

Respected Lawyers,
I want to let few newly , unoccupied,shops for rent.For the sake of simplicity & my property's security should I opt for 11 month rent agreement with tenants or get registered with Rent authority portal online of my state which are formed under the new law of urban tenancy regulations 2021?
Few suppliment questions are :-
A) Is 11 month agreement admissible in the court?
B) If No then how strong would be my case in the court if I want to evict the tenant in future say after 12,20,30 years after revising 11 Month agreement with the tenant each of these years?
C) Should I opt for registration on web portal of Rent authority of the state, in case of rent agreement is of more than 11 months?
D) in the above case do I need the get the rent agreement registered separately?
E) Do state rent authorities charge any amount for its services?

Please guide me .
Thanks
Asked 1 year ago in Property Law
Religion: Muslim

5 answers received in 2 hours.

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17 Answers

11 months registered agreement is admissible in evidence 

 

2) keep a gap of some days then renew agreement 

 

3) you can register your agreement with rent authority portal of your state 

 

4) as far as charges are concerned consult a local lawyer 

Ajay Sethi
Advocate, Mumbai
99885 Answers
8152 Consultations

Notarised agreement is valid but better to register rental agreement 

 

2) it is better to pay stamp duty and registration charges then get involved in time consuming litigation 

 

3) expenses can be split equally 

 

4) you can enter into agreement for 33 months with renewal clause 

 

Ajay Sethi
Advocate, Mumbai
99885 Answers
8152 Consultations

  1. As the tenancy is for 11 months, Uttar Pradesh Regulation of Urban Premises Tenancy Ordinance. 2021 is not applicable, you can validly execute 11 months agreement.
  2. A 11 months agreement is as valid as any other agreement and is admissible in Court. Include an option in agreement for renewal of agreement after every 11 months. This will confer a right  on you to terminate agreement  at the  end of every 11 months.
  3. You are obliged to register the agreement  of State Government website if the  agreement  is more than 12 months as per Section 4.
  4. No to register an agreement of 11 months.

  • For rent agreements of less than 11 months, the stamp duty is 4% of the annual rent.

  • For rent agreements of more than 11 months, the stamp duty is 8% of the annual rent.

Ravi Shinde
Advocate, Hyderabad
5134 Answers
42 Consultations

You can enter into agreement for 11 months or more 

 

if you don’t want to renew agreement every year hence suggested 33 months with renewal clause 

Ajay Sethi
Advocate, Mumbai
99885 Answers
8152 Consultations

 

Renewal of agreement can be only with mutual consent of parties 

 

you can refuse to renew agreement 

 

you don’t have to provide any reasons 

Ajay Sethi
Advocate, Mumbai
99885 Answers
8152 Consultations

Better register rental agreement to avoid legal complications 

 

consult a local lawyer before proceeding further 


 

Each state has its own rent act 

Ajay Sethi
Advocate, Mumbai
99885 Answers
8152 Consultations

1. 11 Months rental agreement is an admissible and valid evidence in court of law.

2. Periodical renewal of the rental agreement will be proper evidence to establish tenant landlord relationship.

3. It is always advisable that you register the rental agreement ion the rental portal of your state.

4. Only registered rental agreement will be entertained to recorded in the rental portal.

5.  You can confirm about the charges/fees to be paid at the time of registering the same in the rental portal

T Kalaiselvan
Advocate, Vellore
90087 Answers
2502 Consultations

It is always advisable to register the rental agreement because a registered rental agreement can be used as proof in case of a dispute, and it ensures that both parties comply with the terms of the lease.

The registration fees and stamp duty for a rental agreement vary from state to state.

If you feel that the rental agreement for a period of more than a year would incur lesser stamp duty you may decide accordingly, besides if the tenant is not to be burdened on it wholly then you can share the registration charges 

T Kalaiselvan
Advocate, Vellore
90087 Answers
2502 Consultations

If you don't want to share the stamp duty and the registration charges with the tenant, then you can inform him about the registration charges are to be borne by him alone as one of the conditions of the rental agreement.

The 33 months rental agreement might have been suggested in order to ease your hardship of getting the rental agreement every after 11 months. 

There is no exclusive  significance attached to this suggestion.

T Kalaiselvan
Advocate, Vellore
90087 Answers
2502 Consultations

The choice is yours especially when the conditions for renewal of the rental agreement is cited as on the mutual agreement of the parties to this agreement.

You cannot be forced to renew the rental agreement if there is no condition making it as mandatory for you to accept the renewal request from the tenant.

You can even refuse to renew the same.

However you can stipulate clearly as a condition in the rental agreement to this effect

T Kalaiselvan
Advocate, Vellore
90087 Answers
2502 Consultations

If you are looking for some beneficial schemes of rental agreement, you can decide about it based on the prevailing circumstances.

As per the latest law, the courts don't entertain the rental disputes for an unregistered rental agreement  so you can think what can be done on it in case of a dispute with a tenant at a later stage having an unregistered rental agreement

T Kalaiselvan
Advocate, Vellore
90087 Answers
2502 Consultations

A. The registration of rent agreement for 11 months is not mandatory, and it is admissible in agreement if the said agreement is dully signed in the presence of witnesses and even notarized. 

B. The agreement for more than 11 months period should mandatorily registered after paying stamp duty 

- You can renew the written rent agreement each year , however must keep the record of previous years rent agreement to prove the tenancy .

C. Yes, 

D. Depend upon you . Reply is given in A & B

E. Yes, for registration of rent agreement a stamp duty of at least 2% of the rent amount charged However it can be differ and depend upon the state. 

- The tenancy can be oral as well, if the tenant is paying the rent each and every months. 

Mohammed Shahzad
Advocate, Delhi
15830 Answers
242 Consultations

Registration of lease for less than 12 months is optional and compulsory.

Ravi Shinde
Advocate, Hyderabad
5134 Answers
42 Consultations

If it is mandatory in your state then register it with rent authority 

Ajay Sethi
Advocate, Mumbai
99885 Answers
8152 Consultations

You are right hence you may get your rental agreement registered before the sub registrar concerned.

The latest law will be applicable to the property situated in the urban location only.

T Kalaiselvan
Advocate, Vellore
90087 Answers
2502 Consultations

Leave and license agreement is the best way

Prashant Nayak
Advocate, Mumbai
34597 Answers
249 Consultations

- If you are entering into an agreement for more than 12 months period , then its registration from the registrar is mandatory 

- It can be registered from the registrar where this property is located. 

Mohammed Shahzad
Advocate, Delhi
15830 Answers
242 Consultations

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