In Maharashtra, it is mandatory to register a Leave and License agreement for a period of 11 months or less. The process of registration is simple and straightforward but is essential to ensure the legality of the agreement.
What is a Leave and License Agreement?
A Leave and License agreement is a written agreement between the owner of a property and the licensee (the person who takes the property on rent) whereby the owner grants the licensee the right to use and occupy the property for a specified period.
The agreement contains all the terms and conditions regarding the use of the property, such as rent, deposit, maintenance, and other relevant clauses. The agreement also protects the rights of both parties and is legally binding.
Why is Registration Required?
In Maharashtra, under the provisions of the Maharashtra Rent Control Act, 1999, it is mandatory to register all Leave and License agreements for a period of 11 months or less. Failure to register the agreement can lead to legal complications and penalties.
The registration process ensures that the agreement is legally valid and enforceable in case of any disputes. It is also crucial for the licensee to obtain several documents, such as voter ID, PAN card, and a valid address proof, as most service providers require these documents for verification.
How to Register a Leave and License Agreement?
The process of registration of a Leave and License agreement in Maharashtra is straightforward. Firstly, both parties must draft the agreement on a stamp paper with a value of Rs. 100 or more. Once the agreement is drafted, both parties must sign it in the presence of two witnesses.
After the agreement is signed, it should be registered at the Sub-Registrar`s office, located in the area where the property is situated. Both parties must be present at the time of registration, along with two witnesses, for verification purposes.
The Sub-Registrar will check all the documents and verify the identity of both parties before registering the agreement. Once the agreement is registered, both parties will receive a copy of the registered agreement, which is legally binding.
In conclusion, it is mandatory to register a Leave and License Agreement for a period of 11 months or less in Maharashtra. The process of registration is straightforward and ensures the legality of the agreement. It is essential to follow the registration process to avoid legal complications and penalties in the future.