Updated: Jun 18, 2020
Further to our previous article comparing the Rent agreement with Leave and License
agreement, we will focus on leave and license agreement online registration along with draft of leave and license agreement, benefits of registration, charges required for registration and other requirements for online registration of leave and license agreement.
Which clauses should be added to draft of Leave and License Agreement?
It should clearly set the agreed period of license
It should clearly set out license fee and interest free deposit amount that licensee is required to pay to licensor as per agreed schedule
It should mention no tenancy and no sub-licensing clause thereby prohibiting licensee from sub-licensing the licensed premises.
It should clearly mention the usage, no alteration and inspection clause
It should have cancellation clause that should describe the notice period and recovery of possession clause mentioning damages to be recovered on licensee failing to vacate the licensed premises on expiry or determination of license
Benefits of Leave and License Agreement online registration
It makes you legally compliant as Maharashtra Rent Control Act mandates the registration of rent or leave and license agreement
It is considered as valid address proof.
It is legally enforceable and is considered as valid proof in the court of law which eases to large extent, the recovery of unpaid license fee, damages and recovery of vacant property from licensee on expiry or determination of leave and license as per terms specified in agreement
Charges for online registration of Leave and License Agreement
Stamp Duty Charges: This is variable component as it depends on total license fee, number of months, refundable and non-refundable deposit amount.
Registration Charges: This amount depends on whether your property is in rural or urban area. For urban area, Rs. 1000/- is charged as registration charges whereas for rural area this amount reduces to Rs. 500/-
Legal First Charges: Rs. 1150/- which includes only one visit for capturing biometrics and photo. If for any reason additional visit is required then it will be charged extra at Rs. 450/- per additional visit. Additionally GST @18% would be applicable.
Basic Requirements for Leave and License Agreement online registration
All parties including witnesses must have valid Adhar card
Two witnesses are compulsory for agreement
Licensor must have valid proof of ownership e.g. Index II
Licensor should have PAN card
Power of attorney, if used, should preferably be registered and should be in force
You may explore our Online Leave and License services to avail hassle free execution and registration of your leave and license agreement from the comfort of your home. In case you have special requirements and you want to register your rent or leave and license agreement through offline process then you are advised to explore our Legal Drafting services.
Thanks for reading through this article. Do share this article with your friends to help them know this information