FAQs - Rent / Lease Property

Ans - Ever since the Maharashtra Rent Control Act, 1999 came into force, there is no stipulation so as to the total time period of Leave and License Agreements. Generally, it is 3 years, though.

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Q2. How is a lease agreement made?

Ans - In cases where the lease contract is from year-to-year / exceeding one year's rent, then a registered instrument has to be created, which both the lessor and the lessee must execute.

For a lease of less than a year, an oral agreement followed by delivery of possession is considered enough.

Q3. Is a lease deed required to be stamped and registered?

Ans - Yes. But the stamp duty payable on lease is much more than on Leave and License for a period of 3 years.

Q4. What is exclusion clause in Rent Control Legislations?

Ans - The Exclusion clause in rent control legislations are those premises that are exempted from its provisions.

Q5. Which Act deals with the eviction of tenants form such exempted premises?

Ans - Eviction pertaining to such property is governed inter alia by the Transfer of Property Act and not by State laws.

Q6. Does a leave and license require compulsory registration?

Ans - Yes, as per Section 55 of the Maharashtra Rent Control Act, 1999, a leave and license requires compulsory registration. It is the responsibility of the landlord to get the same registered. Failure on his/her part may impose a fine of not exceeding Rs. 5000/- or up to three months imprisonment.

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Q7. What is a Sub-lease?

Ans - Where the original lessee re-leases the whole or any part of interest in the property to a third party, the lease agreement between the two original parties remaining the same, and the transaction is called a sub-lease.

Q8. What is a foreclosure?

Ans - A foreclosure is the termination of the lease period by the lessor by making a request to the lessee prior to the end of the lease period.

Q9. What is a Sale and Leaseback transaction?

Ans - Sale and Leaseback is a type of transaction in residential or commercial real estate where the owner of a property sells the property and then leases it back from the buyer. This way it frees up the original owner's capital while allowing the owner to retain possession and use of the property.

Q10. What is leasehold property?

Ans - When the lessor leases a piece of property to an individual (known as the 'Lessee') for a stipulated period of time, by the owner of the property (known as the 'Lessor'), the property is referred to as Leasehold Property.

The land ownership rights remain with the Lessor. Transfer of property requires prior permission.

Q11.Can a tenant of a property transfer tenancy?

Ans - Yes, with the permission of landlord.

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Q12. What is a Lease Deed?

Ans - The instrument that defines the terms and conditions, under which the Lease comes into effect, is called a Lease Deed.

Q13. What is a difference between Lease and a Leave and License Agreement?

Ans -

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Q14. Can a Lease be terminated before an agreed time period?

Ans - Yes.

Q15. Who is liable to carry out the registration of a tenancy agreement?

Ans - The responsibility to the Tenancy Agreement registered lies with the landlord himself.

Q16. What is the difference between Tenancy and Lease?

Ans - Lease is carried on for a fixed time period, while Tenancy is on monthly basis.

Q17. What is a latent defect?

Ans - Any defect that cannot be discovered by the buyer with ordinary diligence is called a Latent Defect.

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