Does a Leave and License agreement for a Residential flat requires compulsory registration.
2BHelpfull (Other) 16 April 2014
Any document which creates any right/title/interest in immoveable property valuing above 100 requires registration. (S.18 Indian Registration Act)
A Leave and Licence Agreement, as defined in Section 52 of the Indian Easements Act, 1882, gives the licensee the right to use and occupy the Licensed Premises for a limited duration. This right is an interest created for the specific period. Hence requires registration.
(S.49 Indian Registration Act)
In absence of registration such document would not create any rights/interest nor would be received in evidence.
Under Section 55 of the Maharashtra Rent Control Act, 1999, it is compulsory that all Leave and Licence agreements should be in writing and registered. The penalty for failure to register is imprisonment up to 3 months, or a fine up to Rs. 5000 or both.