Are you planning on renting out your property in Tamil Nadu? If so, it`s essential to understand the process of registering a leave and license agreement.
A leave and license agreement is a legal document that outlines the terms and conditions of the rental agreement between the owner of a property and the tenant. This agreement provides legal protection to both parties and helps to prevent any disputes in the future.
In Tamil Nadu, the registration of a leave and license agreement is governed by the Registration Act 1908. According to this act, any agreement that involves the transfer of ownership of property or the right to use it for a specified period must be registered.
To register a leave and license agreement in Tamil Nadu, you must follow the steps outlined below:
1. Stamp Duty and Registration Fees
The first step is to calculate the stamp duty and registration fee. The stamp duty and registration fee for a leave and license agreement in Tamil Nadu is calculated as a percentage of the annual rent. The stamp duty is 1% of the annual rent, while the registration fee is 1% of the total value of the agreement.
2. Prepare the Agreement
The next step is to prepare the leave and license agreement. This agreement must include the names and addresses of both the owner and the tenant, the term of the agreement, the rent amount, and any other terms and conditions that both parties agree to.
3. Get the Agreement Notarized
Once the agreement is prepared, both parties must sign it in the presence of a notary public. The notary public will then notarize the agreement, which means that they will certify that both parties signed the agreement willingly and without any pressure.
4. Submit the Agreement for Registration
The final step is to submit the notarized agreement along with the stamp duty and registration fee to the Sub-Registrar`s office. The Sub-Registrar will then verify the documents and register the agreement.
In conclusion, registering a leave and license agreement is an important step in renting out a property in Tamil Nadu. By following the steps outlined above, you can ensure that your agreement is legal and enforceable, and you can avoid any disputes or legal issues in the future.