License deed vs. lease deed vs. rent agreement
Querist :
Anonymous
(Querist) 08 January 2011
This query is : Resolved
I am a property owner,wanna give my property on rent.The ultimate purpose --timely receiving of rent,timely eviction of the property.
Which deed is best for me out of all these three deeds?
And why?
And what is the difference among these three?
DEFENSE ADVOCATE.-firmaction@g
(Expert) 08 January 2011
Take expert local help for drafting the documents since I am for the tenants and will get them relief if you do not take proper care which most of the landlord miss.
Uma parameswaran
(Expert) 08 January 2011
Each documents have its own validity and requirements.It depends upon the purpose also.
Querist :
Anonymous
(Querist) 08 January 2011
A clear but question but yet not answered clearly,I m srry to say..
And request further clarifications from the learned experts.
Arun Kumar Bhagat
(Expert) 08 January 2011
For the side of landowner license deed would be favourable. It should be for shorter duration preferrably for 11 months so that the registration is not compulsory.
Querist :
Anonymous
(Querist) 08 January 2011
But Arun sir why license deed is better than the other two and what is the difference?
A V Vishal
(Expert) 08 January 2011
A Lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement.
License is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee's part. It merely gives the licensee the right to use and occupy the premises for a limited duration. It doesnot generally exceeds 3 years.
A lease deed needs to be stamped and registered. The amount payable towards the lease deed's stamp duty is more than that payable towards the Leave and License's. For a period exceeding three years, the stamp duty is same for both agreements.
The implications of entering into a lease agreement would be: i) That stamp duty would have to be paid ii) That the document would have to be registered iii) That Municipal taxes may go up iv) Of course, Income-tax would have to be paid on your income; and v) The question of Wealth-tax would have to be considered. One property is exempt from Wealth-tax. However, if you have any other property, this implication would have to be considered.
