Take consideration before vacating flat and at time of signing of agreement 

no need for advance 

For transfer of tenancy only assignment deed is executed 

First, put everything in writing by signing a Surrender of Tenancy Agreement with the landlord, mentioning the total amount, payment dates, and when the flat will be vacated...

You can take a token or advance amount first, supported by a simple MoU, so the deal is locked...

The remaining amount should be paid at the time of signing the final surrendr deed and handing over possession, preferably through bank transfer...

Do not vacate the flat until the full payment is received, and make sure the final deed is properly stamped and registered..

A simple affidavit of surrender has to be made on Rs. 500 stamp paper and notarized 

Consideration can be mentioned in above affidavit 

Hand over the affidavit simultaneously while receiving Consideration and upon receiving Consideration the premises can be vacated 

No mou etc is needed 

Your father-in-law’s situation is legally recognised even without current rent receipts. Continuous possession after the death of the original tenant, coupled with the landlord’s acquiescence (not demanding rent or eviction), amounts to recognised statutory tenancy under the Maharashtra Rent Control Act. Therefore, the landlord cannot simply take back the premises without following due process or without compensating the tenant as agreed.
The safest and commonly followed process is as follows.
First, settle the commercial terms in writing before vacating. There should be a clear written understanding on:
Total consideration payable by the landlord for surrender of tenancy rights
Timeline for payment
Timeline for vacating possession
Responsibility for stamp duty and registration
Mode of payment (cheque / RTGS only, never cash)
This understanding should not be oral.
Second, execute a Memorandum of Understanding (MoU) or Agreement for Surrender, and take a substantial advance. Yes, an MoU or Agreement must be signed before vacating and before final surrender. At this stage:
An advance/token should be taken (typically 20%–30% of the agreed amount, sometimes more depending on leverage).
The MoU must clearly state that the balance consideration will be paid simultaneously with execution of the final Deed of Surrender and handing over possession.
The MoU should also record that possession will not be handed over until full consideration is received.
This MoU can be notarised or registered depending on the amount and parties’ comfort, but even notarisation is better than an oral understanding.
Third, execute the Deed of Surrender / Transfer of Tenancy Rights, duly stamped and registered. The final document is usually called:
“Deed of Surrender of Tenancy Rights” or
“Deed of Relinquishment / Assignment of Tenancy Rights in favour of the Landlord”
This document should:
Recite the history of tenancy (grandfather → father-in-law)
Record that the landlord has accepted surrender
Mention the total consideration
Acknowledge receipt of the full amount (or record contemporaneous payment details)
Record the date and time of handing over vacant possession
Ideally, full and final payment should be made on the same day as registration of the surrender deed, either:
Immediately before registration (so receipt is acknowledged in the deed), or
At the Sub-Registrar’s office itself via RTGS/cheque.
Fourth, hand over possession only after payment and registration. Vacating the flat should happen:
After execution and registration of the surrender deed, and
After receipt of the entire agreed consideration.
Keys should not be handed over earlier. Electricity, water, and other connections should be handed over only after completion.
On your specific questions:
Yes, consideration should not be taken after vacating. It should be taken before or simultaneously with execution of the surrender deed, never after.
Yes, an advance/token should be taken, and it should be backed by a written MoU or agreement clearly stating forfeiture / consequences if the landlord backs out.
Yes, an MoU or Agreement is strongly advisable before accepting any token. Never accept money without a document.
One additional practical safeguard: since your father-in-law does not have recent rent receipts, the documents must clearly establish continuity of possession and tenancy lineage. Old documents, electricity bills, ration card, Aadhaar address, society letters (if any), or correspondence with the landlord should be preserved and, where appropriate, referred to in the agreement.
Also, stamp duty and registration charges are typically borne by the landlord, but this should be expressly stated.
In summary, the correct and safe sequence is:
Written MoU + advance
Final Deed of Surrender (registered)
Full payment
Vacating and handing over possession
Any deviation—especially vacating first or relying on oral assurances—creates serious risk and should be avoided.

Under Maharashtra Rent Control Act, 1999, surrender / relinquishment of tenancy rights by the tenant in favour of the landlord, for consideration is legally valid.
He may execute Agreement / Deed of Surrender of Tenancy Rights Confirming that tenancy is under Pagdi system and
Stating that tenant is voluntarily surrendering tenancy rights and the total consideration agreed, has been received and that the tenant has no future rights after surrender.
The deed may be executed by a registered document, before that an unregistered MOU incorporating the terms between both may entered into.
The token amount of at least 10% may be obtained at time of signing the MOU, 80% of agreed amount can be obtained at the time of registering the surrender deed and balance amount can be obtained at the time of delivery of vacant possession.
Don't vacate the flat before receiving full consideration amount.
The absence of rental receipt is not fatal in pagdi system tenancy

Legal Position: Your father-in-law's tenancy is valid despite no rent receipts. He can surrender it back to the landlord via express surrender under Transfer of Property Act, Section 111(e).​

Two Documents Required:

1. MOU/Token Receipt (if taking advance):

   • Token amount, total consideration, payment schedule

   • Dates for deed execution

   • Token is part of (not separate from) final consideration​

2. Deed of Surrender (mandatory):

   • Property details with CTS/C.S. number

   • Statement: "Tenant surrenders all tenancy rights; Landlord accepts surrender"

   • Consideration amount with payment terms​

   • Possession handover clause

   • Register with Sub-Registrar within 3 months​

Payment Timing:

• Recommended: Token at MOU stage → Full balance at deed execution or same day​

• Do NOT vacate before receiving final payment

• Deed clause: "Balance payable simultaneously with execution"

Stamp Duty & Registration:

• Stamp duty ~1-5% of consideration (or Rs. 200 if no consideration)​

• Registration fee: 1% of consideration, max Rs. 30,000

• Total cost: Rs. 30,000-50,000 (worth it for legal certainty)

GST: If landlord is GST-registered, residential property exemption may apply; otherwise no GST.​

Process Flow:

1. Finalize terms → 2. Execute MOU (pay token) → 3. Draft deed → 4. Get stamped → 5. Execute with both parties present → 6. Register → 7. Deliver possession + final payment simultaneously

Critical: Get deed stamped and registered—this is essential for legal surrender and to protect against future claims.​

​

Your wife’s tenancy rights do not automatically get lost merely because negotiations for surrender fail or because she has been living in Pune after marriage. Under the Maharashtra Rent Control Act, succession to tenancy is governed by statutory principles, not by physical presence alone.

During your father-in-law’s lifetime, he is the recognised tenant. Your wife’s rights are only in the nature of a prospective statutory heir to tenancy, not an independent tenancy right. The law does not require her to continuously reside in the premises while the tenant is alive in order to preserve future succession rights.

On the death of the tenant, tenancy devolves upon family members who were ordinarily residing with the tenant at the time of his death or who can show that the premises constituted their family home. Courts interpret “ordinarily residing” pragmatically, not mechanically. Temporary absence due to marriage, employment, or family reasons does not automatically disqualify a legal heir, especially where the person remains part of the family unit and has not set up an adverse or hostile claim elsewhere.

However, long and complete disassociation from the premises can create evidentiary difficulties later, particularly if the landlord disputes succession. Therefore, while your wife is not legally required to shift back permanently right now, certain precautionary steps are advisable to protect her future claim.

It is important that her connection with the flat remains documented and demonstrable. This can be done without full-time residence. For example, her name should continue to appear in family documents linked to the premises wherever possible, such as ration card records (if still applicable), family declarations, correspondence with the landlord, or municipal records. Occasional stays, family functions, or visits help establish continuity, though these are supportive factors rather than legal requirements.

More importantly, your father-in-law should, while he is alive and competent, formally record the line of succession. The safest way is for him to execute a registered declaration, affidavit, or nomination-type document (where applicable), clearly stating that your wife is his family member and intended successor to the tenancy. While tenancy itself cannot be willed like ownership, such a declaration has strong evidentiary value and significantly weakens any future challenge by the landlord.

Your wife does not need to move back and reside there continuously until your father-in-law’s death. That is neither practical nor legally mandated. What matters is that she does not sever ties completely and that there is clear evidence that she remains part of the tenant’s family structure.

If negotiations with the landlord fail, your father-in-law should also avoid any conduct that could be interpreted as abandonment of tenancy, such as handing over keys, making statements of surrender, or vacating fully. As long as he remains in possession and the tenancy subsists, your wife’s succession rights remain alive.

In summary, your wife’s rights are not defeated merely by living in Pune after marriage. She does not need to relocate permanently now. What is essential is preserving documentary linkage, avoiding abandonment, and preferably creating a clear, recorded declaration by your father-in-law recognising her as successor. These steps provide far stronger protection than physical residence alone and are the correct way to safeguard her future tenancy rights if talks with the landlord do not succeed.

Your wife can claim tenancy rights even after moving out of the house but those rights are conditional, and future protection depends on evidence.

Under the Maharashtra Rent Control Act, 1999 (Section 7(15)(d)),tenancy can pass to any member of the tenant’s family who was residing with the tenant at the time of his death.

Courts generally interpret this liberally but not automatically.

Your claim may be based on the  facts that your wife did reside in the flat for 30 years the supporting documentary evidences may be kept secured, that the marriage and moving out does NOT automatically extinguish her right, however the continuous absence for many years creates a risk of challenge by the landlord.

There is no law that says she must continuously reside there until her father’s death. but some level of continued association or residence is  advisable.

If in case of any litigation in this regard courts 

usually examine:

1. Whether the claimant had “intention to treat the premises as her home”

2. Whether absence was temporary / due to marriage / employment

3. Whether there is proof of ongoing connection.

There are possibilities that the landlord may object for 11 years continuous absence without any evidence.

She need not go and stay in said flat permanently 

on her father demise she would inherit tenancy rights 

• Under Maharashtra Rent Control Act, 1999, after a tenant’s death, tenancy first goes to a family member “residing with the tenant at the time of death”; if no such person, then an heir can be treated as tenant (often needs court if disputed). 

• So, if your wife is not living there when your father-in-law dies, her claim can be contested. Bombay High Court

• Best protection without moving now: get the landlord to add her name as joint tenant / recognised occupant and start rent receipts / written acknowledgement in both names. 

• Do not sign any “surrender/transfer back” deed unless you are sure—once surrendered, her future tenancy-succession rights end.

1. The consideration should be taken before or while vacating the flat to avoid any deception and further litigation.

2. Advance amount also can be taken without vacating the flat.

She should stay at that that flat to prove her occupancy till the right of tenancy passes to her after the demise of her father.

Deed of assignment with the landlord 

not required