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aspi (PROPRIETOR)     22 December 2009

Tenancy Agreement or MOU

Which is a more binding and legal document: a tenancy agreement or MOU? Is a Notarized MOU valued in a court of law?

How does one determine the value of non judicial stamp paper before printing the contents of tenancy agreement


 8 Replies

Parveen Kr. Aggarwal (Advocate)     22 December 2009

Nomenclature of a document is not of much significance. Rather its contents define rights between the parties. Whatever may be the name given, it is the different clauses of a deed which determine the rights and liabilities of the parties. So, it depends on the stipulations made in the document whether it be given a nomenclature of tenancy agreement of MOU that decides its binding effect.

The value of stamp required for executing a document is to be seen from the Indian Stamp Act, 1899 and amendments made by the concerned State Legislature.


Tenancy agreement gives legal rights to parties viz., Landlord and Tenant as soon as it is signed. It is legally enforceable and binding on third parties for evidence purposes. Whereas MOU's object is totally different and no rights are established to the parties concerned until and unless the MOU is fully accomplished. MOU is not supposed to be notarized since it is not an Affidavit in the eyes of law. It is just an understanding between parties in writing. The stamp duty is worked out on lease period basis and the annual rental value for the whole period (check this with your local registration office).

Guru, Advocate, Chennai - 9884933374 / 9444624121

Meharaj Chagla (Advocate)     26 December 2009

As for as the tenancy agreement is concerned, there can be unregistered tenancy agreement only upto 11 months period. If the Lease deed is for more than 11 months it should be registered. But whehter it is registered or unregistered, if the rent control Act is applicable to that particular area where the Property situates then only the Court will decide the issue in between Landlord and Tenant. Unregistered Lease Deed for more than 11 months shall be looked into only for the nature of possession of parties.

Dr.Anjani Kumar Vaidyasen,09431271130,Patna (Corporate affairs Taxation and Law Consultants Advocate)     28 December 2009

I don't know by  which states you belong because each states has it own act for its value of document and their period.Basic difference between agreement and MOU is the validity in process of registration,Agreement registered with value of stamp but it is not MoU.

Thanking You.

subhash kumar (advocate)     28 December 2009

Dear. Maharaj Chagla advocate clarified well, i agree

Subhash kumar, adv

pgmadhav (_____________________)     06 March 2010

I have a flat in Jamshedpur,Jharkhand. I want to let it on rent. Now the problem is :-

1)Stamp papers (for 11 months agreement ) are not available for sale in the Jamshedpur, So can I use Stamp papers from other places/ states e.g. Aandhra Pradesh, Maharastra?

2) Where can I get the matter for the agreement? Lawyers here are demanding Rs.2000 just for making agreement. I think that is a very high price.

3) Who keeps the Original copy of the agreement; Tenant or Landlord?

Nitin Ahuja (Advocate )     23 November 2010

1. if you are not getting the stamp papers of the concerned state kindly check out nationalised banks for Stamp Franking.. it is equivalent to stamps and got legal entity.

2. well the fees of particular advocate depends upon his ability to draft the document and put in all the important points within.

3. the Original Copy of the agreement is always in the custody of the Owner/ Landlord and the photocopy of it should be in the custody of the Tenant/ Occupier


navin bharega (gm)     12 March 2015

May Pl advice early.

Between a notorised Mou w/o stamp duty page and another one with stamp duty page....what is the difference in terms of ownership and legal enforcement. 

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