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What is a Rent Agreement?
A house rental agreement is a mutual agreement between between the landlord and tenant for a fixed amount of period with a set of Terms & Condition and a fixed monthly/yearly consideration termed as “Rent” .
What are the types Of Rental Agreements?
11-Month Rental Agreement – 11 Months Rent Agreement or Leave & license Agreement used in most rental transactions, the 11-month rental agreement is one of the most commonly used rental agreements throughout the country. The term of the lease is 11 months following which both parties can choose to either renew it or end it. In this case Landlord is called by “Licensor” , Tenant is called by “Licensee” and the Rent amount is called by “License Fee”. Generally Registration is not required in this case, only Notarization is sufficient.
Long Term Lease – Long term leases have durations in years. They involve large sums of money to be paid upfront and this sum is often returned to the tenant at the end of term. They are less frequently used as compared to the 11-month rental agreement.
Commercial Lease – Commercial leases involve large sums of money and long periods of duration. Commercial leases have an agreement format that is quite different from that of residential rental agreements. They do not have a standard format as needs and clauses vary with the type of business.
Difference between Lease and Leave & license Agreement
| Basis | Lease | Leave & License |
| Governing Law | Rent Control Act | Indian Easement Act, 1882 |
| Meaning | A lease is a transfer of an interest in an immovable property for consideration | A License is a right to do something on the owner’s property which, without such right, would be unlawful. |
| Transfer of Right | Yes | No |
| Stamp Duty | Higher | Lower |
| Parties | Lessor (Owner) and Lessee (Tenant) | Licensor (Owner) and Licensee (Person to whom right is granted) |
| Revocation | Not revocable by the landlord. | Revocable by the landlord. |
| Termination notice | Termination Notice is required | Termination Notice is generally not required. |
| Registration | Lease Agreement of 1 year or more has to be registered | License Agreement of 1 year or more has to be registered |
| Death of Parties | Death of either party does not affect a lease as it is a heritable right. | A license is terminated by death of either party. |
| Sale of property | Sale of property does not affect the Lease | Sale of property will result in revocation of Licensee |
| Agreement | lease requires a written or oral agreement between two parties. | A license does not always require a written agreement. |
| Terminology | In a lease the money to be rendered is called rent. | In a license the money paid it is called License Fee., |
| Agreement | Required | Required |
How to distinguish?
Lease: Lease of immovable property is a transfer of a right to enjoy such property made for a certain time in consideration for a price paid or promised.
Leave & License : In Leave & License it is only a right to use the property in a particular way or under certain terms while it remains in possession and control of the owner thereof.
What is the Difference Between Lease & Rental Agreement?
FAQs:
What are the Documents required to make Rental Agreement in West Bengal?
Photocopy of passport, Aadhaar, driving license, etc., as address proof.
PAN or Aadhaar card as identity proof.
One passport-sized photographs of the tenant and the landlord.
What are important things to include in a rental agreement?
Full details of parties involved in the agreement.
Amount details of monthly rent along with security deposit and maintenance charges (if any).
Landlord’s right to enter the property.
Permission for pets.
Evacuation of tenant in case of disruptive behavior and illegal activities.
Terms of rent agreement.
Clauses for renewal of agreement.
Penalty if the rent gets delayed, etc
What is the stamp duty is payable on rental agreements?
The stamp duty payable on rent agreement is calculated on the basis of various factors, such as monthly rent, advance deposit paid, no. of years of the agreement, etc.
Is rental agreement registration mandatory?
As stated in the Registration Act, 1908 it is mandatory to register a rental or lease agreement which is made for the period of 12 months or more. If you are making Rent Agreement for 11 months then it is not mandatory to Register the Agreement.
Who pays for the legal charges of rental agreement?
The legal cost of making for rent agreement is borne by both the parties in equal halves.
Is leave and license agreement same as rental agreement?
No, A leave and license is governed by the Indian Easement Act, 1882 and is different from a rental or lease agreement. Generally Rent Agreement Governed by Tenancy Act.
Why leave and license agreement is for 11 months?
Under the Registration Act, 1908, it is mandatory to register a rental agreement if period is more than 12 months. Hence, to avoid stamp duty and registration charges, leave and licence agreements are usually for 11 months.
Everybody once in their lifetime will come across a lease and rental agreement either to negotiate or sign it for personal or business use. There are certain comprehensive conditions that are involved in negotiating and understanding legal agreements dealing with leasing, renting or leave arrangements for residential and commercial properties. This article will guide you to make a Lease Agreement and Rent Agreement in easy steps.
Making A Rental Agreement Online
To make a rental agreement online for Kolkata or rest of West Bengal or anywhere in India, follow these steps –
- Open our well-drafted, legally verified, online rental agreement
- Fill in details of landlord and tenant and set clauses as per your requirements.
- Make the Payment, after completion you will get the soft copy for verification, Hard copy with Notary you will get this by visiting our office of we can send Notarized Agreement to your location by post.
How To Make It Enforceable And Legally Valid?
Once you’re ready with the Agreement follow the checklist below for an error-free agreement.
- The document needs to be printed on Stamp Paper of a recommended value.
- Ensure both the parties (landowner and tenant) sign at the bottom of each page and at the end.
- Signature of the witnesses along with name and address.
- Include details of fixtures and schedule of the property as an attachment.
- Notary Done.
Make Premium quality Rent Agreement online instantly
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