When you enter into a leave and license agreement in Delhi, it is necessary for you to register it with the concerned authority. According to the Delhi Rent Control Act, 1958, a leave and license agreement that has a tenure of more than 11 months requires mandatory registration. Failure to do so can result in legal complications for both the landlord and the tenant.
The registration process for a leave and license agreement in Delhi involves the following steps:
Step 1: Preparation of the Agreement
The first step is to prepare the leave and license agreement. It should be drafted in accordance with the provisions of the Indian Stamp Act, 1899, and the Registration Act, 1908. The agreement should contain all the necessary details of the landlord, tenant, the property, and the terms and conditions of the agreement.
Step 2: Payment of Stamp Duty
The next step is to pay the stamp duty for the agreement. The stamp duty payable for a leave and license agreement in Delhi is 2% of the average annual rent, subject to a maximum of Rs. 10,000. The stamp duty can be paid online or offline, depending on the method preferred by the parties.
Step 3: Registration of Agreement
After the payment of stamp duty, the leave and license agreement can be registered with the Sub-Registrar of the area where the property is situated. The registration fee for a leave and license agreement in Delhi is 1% of the total rent payable for the tenure of the agreement, subject to a maximum of Rs. 1,00,000.
Step 4: Submission of Documents
The parties will have to submit the following documents to the Sub-Registrar for the registration of the leave and license agreement:
• Original copy of the agreement
• Proof of identity of the parties (Aadhaar card, PAN card, passport, etc.)
• Proof of ownership of the property (sale deed, allotment letter, etc.)
• Two passport size photographs of each party
Step 5: Verification and Registration
Once the documents are submitted, the Sub-Registrar will verify the details and submit the agreement for registration. The parties will have to be present at the time of registration, and after verification, the Sub-Registrar will affix the registration stamp on the agreement. The registered agreement will be returned to the parties, and a copy will be kept by the Sub-Registrar for record-keeping.
In conclusion, it is important to register a leave and license agreement in Delhi to ensure legal validity and avoid any future disputes. The process can be completed within a few days, and it is advisable to seek the assistance of a legal professional for drafting and registration. It is always better to be safe than sorry, so do not hesitate to register your leave and license agreement in Delhi.