Leaving your rented property in Mumbai requires you to follow proper legal procedures, and one such procedure is registering a leave and license agreement. Registration of leave and license agreement is mandatory under the Maharashtra Rent Control Act, 1999, and failing to do so could result in legal consequences.

If you are a tenant or a landlord in Mumbai, it is crucial to understand the process of registering a leave and license agreement. Here’s what you need to know:

What is a Leave and License Agreement?

A leave and license agreement is a legal document that outlines the terms and conditions of your rental agreement. It specifies the period for which you are renting the property, the rent, and other terms and conditions agreed upon by both the parties. The agreement also includes clauses regarding maintenance, repairs, and other responsibilities of the tenant and the landlord.

Why is Registration Necessary?

Registration of a leave and license agreement is mandatory under the Maharashtra Rent Control Act, 1999. The act states that any agreement that allows the tenant to occupy the property for a period of eleven months or more must be registered with the Sub-Registrar’s office. Failing to register the agreement could lead to legal consequences and hefty penalties.

Registration Process

The process of registering a leave and license agreement in Mumbai involves the following steps:

1. Stamp Duty

Before registering the agreement, you must pay the stamp duty. The stamp duty is a fee charged by the government for the registration of the agreement. The stamp duty is generally calculated as a percentage of the annual rent. You can pay the stamp duty through an e-stamp vendor or physically at the stamp office.

2. Online Application

Once the stamp duty is paid, you can apply for registration of the agreement through the online portal of the Maharashtra government. You need to fill in the required details and upload the scanned copy of the agreement.

3. Document Verification

After submitting the application, an inspector will visit your residence to verify the documents. The inspector will check the original documents and match them with the scanned copies uploaded online.

4. Registration

Once the documents are verified, you will receive a date for the registration of the agreement. Both the tenant and the landlord must be present at the Sub-Registrar’s office on the specified date. The agreement is then registered, and a copy is handed over to both the parties.

Conclusion

Registration of a leave and license agreement is a vital step that must not be ignored by tenants or landlords. The process may seem time-consuming and tedious, but it is necessary to ensure the legality of the agreement and protect the interests of both parties. So, if you are a tenant or a landlord in Mumbai, make sure to follow the proper procedures and register your leave and license agreement.