An ill tenant can give any landlord many sleepless nights. Presently, price of real estate units in metros and suburbs has hit the roofs. As a result, about half of the population settle with rented nests. In Kolkata a huge volume of such rental provision is found in flats in Rajarhat area. But a squatter is someone who refuses to surrender the occupancy even after contract is over. The best solution to this ado is Leave and Licence Agreement.
There are two options available in terms of putting the apartment on rent either Leave and Licence or lease. Now the fact is that we use both of these terms interchangeably, but they are radically different from each other.
Licence Agreement- Section 52 of the Indian Easements Act, 1882, gives permission to the licensee to use the property, Section 105 of the Transfer of Property Act, 1882, terms lease in which a tenant has exclusive possession of the property for a specified time period to the exclusion of everyone, including the owner.
Lease Agreement- Rental leases generally last for 12 months, although many landlords opt for an 11 month lease to pass up rental control laws. Rental leases can habitually be simply extended or shortened if negotiated with the landlord in advance. Most rental leases need a minimum occupation period equivalent to the duration of the lease.
The former set of rules is mostly used to rent out commercial properties across the country. Major state like Maharashtra, especially in Mumbai follows the same procedure while renting commercial spaces. A leave licence agreement doesn’t really have much in favour of the tenants related to their right of the tenancy. It’s the landlord protective mechanism to wit. It’s mostly due to the ignorance of people make snafu in order of the application.
You can actually make a lot of money with your apartment on rent. But most of the people in metro and Tier I and II cities fear of renting apartments fearing immoral claim by the tenants and never-ending litigations. As licence agreement creates a big hole inside the pocket, thus landlords mostly go with the lease option. Licence agreement doesn’t include stamp duties, whereas it’s as costly as the stamp duty in most of the cases. But it’s wiser to be cautious if you want to avoid unnecessary future problems. Thus, it’s advisable to stick to the licence agreement even if it’s costly.
A directive structure under the draft Model Tenancy Act has also been proposed by the government of India for residential and commercial properties in India. The proposed law seeks to bring stability the rights and duties of both landlord and the tenant under a contract (through legal route). The draft discuses about setting up of rent courts rent authorities and rent tribunals by the Centre, states and Union territories on the principle of “natural justice”.
-LNN (Liyans News Network)
There are two options available in terms of putting the apartment on rent either Leave and Licence or lease. Now the fact is that we use both of these terms interchangeably, but they are radically different from each other.
Licence Agreement- Section 52 of the Indian Easements Act, 1882, gives permission to the licensee to use the property, Section 105 of the Transfer of Property Act, 1882, terms lease in which a tenant has exclusive possession of the property for a specified time period to the exclusion of everyone, including the owner.
Lease Agreement- Rental leases generally last for 12 months, although many landlords opt for an 11 month lease to pass up rental control laws. Rental leases can habitually be simply extended or shortened if negotiated with the landlord in advance. Most rental leases need a minimum occupation period equivalent to the duration of the lease.
The former set of rules is mostly used to rent out commercial properties across the country. Major state like Maharashtra, especially in Mumbai follows the same procedure while renting commercial spaces. A leave licence agreement doesn’t really have much in favour of the tenants related to their right of the tenancy. It’s the landlord protective mechanism to wit. It’s mostly due to the ignorance of people make snafu in order of the application.
You can actually make a lot of money with your apartment on rent. But most of the people in metro and Tier I and II cities fear of renting apartments fearing immoral claim by the tenants and never-ending litigations. As licence agreement creates a big hole inside the pocket, thus landlords mostly go with the lease option. Licence agreement doesn’t include stamp duties, whereas it’s as costly as the stamp duty in most of the cases. But it’s wiser to be cautious if you want to avoid unnecessary future problems. Thus, it’s advisable to stick to the licence agreement even if it’s costly.
A directive structure under the draft Model Tenancy Act has also been proposed by the government of India for residential and commercial properties in India. The proposed law seeks to bring stability the rights and duties of both landlord and the tenant under a contract (through legal route). The draft discuses about setting up of rent courts rent authorities and rent tribunals by the Centre, states and Union territories on the principle of “natural justice”.
-LNN (Liyans News Network)
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