Jinesh (Manager) 02 February 2010

Leavel & License agreement registration cost and implication

Hi frnds,

i have let out a commercial property on leave and license in mumbai. However, as yet I have not got the regn. of agreement done and would like to know what would be the cost of regn. and are there any other cost implications apart from regn. cost.

The refundable deposit taken is Rs. 40,000 and the rent per month is Rs. 10000. The agreement is for 22 months.

Please let me know what could be the regn. cost and is there any other cost that is involved apart from this. I am told by somebody that even the municipal taxes would increase if I get the regn. done.

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4 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh) 02 February 2010

definitely you would be liable for municipal taxes of the rented property. So far as the cost is concerned, it is state to state different so it shall be good if you personally go to the office of registrar an obtain the required information.

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Jinesh (Manager) 04 February 2010

Thnx for your reply Raj.....however, just to reconfirm.....do you mean if I get the agreement registered, there would be additional municipal taxes (based on the rent income earned by me) apart from the property tax that is collected by the society along with their monthly maintenence bills ???

Thanks

Jinesh

Anil Agrawal (Retired) 17 February 2010

If the property is in a cooperative housing society, the owner pays all the maintenance to the society and that includes property, water, education cess etc. etc. It is clearly written in the agreement. The period of agreement can be for 11, 22 or 33 months. The registration charges will vary from State to State as rightly pointed out by Mr. Makkad.

Not only registration, you have to inform the local police station and the Society also. With terrorists hiring flats, they have become very strict. There are also various kinds of nuisance which the society wants to avoid.

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Anil Agrawal (Retired) 22 February 2010

Get it registered immediately. It may cost you money but will save you enormous trouble later.

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