leave & license agreement
anish
(Querist) 02 February 2011
This query is : Resolved
Sir, I intent to give my residential flat on leave & license basis to a family. Agreement would be executed with husband. In my town in Gujarat registration on duty on leave and license agreement is very high as authority charges duty on license fees plus deposit equivalent to that charged on actual sale. Generally people donot get their L & L agreements registered for this reason. My feeling is that there are judgements that since in leave & license no rights are transferred because it only allows licensee to make use of the premises registration is not mendatory. In my case if i get agreement notorised and if in future any litigation happens with licensee in case he does not vacate premises etc. would court reject or consider my agreement not as bonafide because it is not registered? Will this notorised agreement not stand in court of law? In case registration is legally mendatory can i have opinion about non charging of stamp duty because unlike sale or lease no rights are transferred to licensee
Amit Minocha
(Expert) 02 February 2011
you may face problem in getting back the possession . Must ensure to get the penalty clause for overstay after the tenure also which would assist you in future litigation. If regn is mandatory by not doing so you enter a high risk area and your tenant can trap you in long litigation sitting in your premises.
Abhishek Marvi
(Expert) 03 February 2011
in gujarat if leave & lic,is more than one year than it is mandatory registered,if not less than one year than it is not mandatory
M V Gupta
(Expert) 04 February 2011
In Maharashtra, Sec.55 of the M. Rent control Act makes it mandatory that L/L Agreement should be registered as otherwise the document is not admissible in evidence and the Licensee's contention on the nature of the deal and the terms and conditions of the deal would be accepted by the Court. Further the responsiblity to get the deed registered is on the L/Lord, who is also liable to prosecution under the Act if he fails to register the Licence Agreemnt. Pl Check if similar provisions are contained in the Gujarat Rent control Act; if so, u should register the deed.
