1. Many agreements made on white paper are valid and enforceable if they fulfill all other conditions under the law and as per the law.
2. However, if the agreement requires to be stamped and registered then it cannot be used as an evidence of proof before a Court of law.
3. Under the Indian Stamp Act, 1899, Section 35 [1] specifically provides that a document which any person relies upon to be used as an evidence cannot do so if the same is not duly stamped.
4. To make it enforceable and valid, you will be required to pay the deficit stamp duty along with penalty, if any, imposed by the collecting authority.
5. The amount of penalty can be maximum up to 10 times of the deficit penalty amount.
6. If a lease deed /rental agreement which requires mandatory registration is not registered by the parties, it cannot be received as evidence of any of the agreed terms and conditions affecting the leased property contained therein, whatsoever.
7. In the event of an unregistered lease deed / rent agreement that requires mandatory registration, the courts have termed the tenancy to be a month tenancy, terminable on a 15 days notice, by either of the parties, which means that lessee cannot enforce the agreed lease period on the lessor.
8. For instance, if the landlord files suit for eviction after terminating the lease after one year, the tenant can not defend the duration of, say, three years mentioned in the lease agreement, if the same is not registered.
9. A registered Lease agreement / deed is also required as proof of address / residence in case of application for Passport, Bank Account, Telephone / Mobile Connection, Admission of children in School etc., besides several sellers and service providers.
10. Although not mandatory for 11 months lease agreement, registration offers a layer of security to the landlord in case the tenant refuses to vacate or pay rent.
11. It is also helpful so that neither party can harass the other in the future.
12. So, if it has been decided that seepage or cracked walls should be repaired within 30 days, and the owner fails to address these, the tenant has the right to get the work done and deduct the expenses from the rent.
13. In case the owner raises an objection, the tenant can approach the police or a civil court on the basis of the registered agreement.
14. However, expenses on renovation or maintenance caused by the tenant's own negligence, such as a broken window pane or damaged doors, will not be considered for deduction from the rent.
15. Having to spend an amount compulsorily for stamp duties in any rental agreement, it is prudent to opt for a possibly longer lease period and register the agreement by paying the additional flat rate, by sharing these expenses equally to have "legal peace of mind" for both parties.
2. However, if the agreement requires to be stamped and registered then it cannot be used as an evidence of proof before a Court of law.
3. Under the Indian Stamp Act, 1899, Section 35 [1] specifically provides that a document which any person relies upon to be used as an evidence cannot do so if the same is not duly stamped.
4. To make it enforceable and valid, you will be required to pay the deficit stamp duty along with penalty, if any, imposed by the collecting authority.
5. The amount of penalty can be maximum up to 10 times of the deficit penalty amount.
6. If a lease deed /rental agreement which requires mandatory registration is not registered by the parties, it cannot be received as evidence of any of the agreed terms and conditions affecting the leased property contained therein, whatsoever.
7. In the event of an unregistered lease deed / rent agreement that requires mandatory registration, the courts have termed the tenancy to be a month tenancy, terminable on a 15 days notice, by either of the parties, which means that lessee cannot enforce the agreed lease period on the lessor.
8. For instance, if the landlord files suit for eviction after terminating the lease after one year, the tenant can not defend the duration of, say, three years mentioned in the lease agreement, if the same is not registered.
9. A registered Lease agreement / deed is also required as proof of address / residence in case of application for Passport, Bank Account, Telephone / Mobile Connection, Admission of children in School etc., besides several sellers and service providers.
10. Although not mandatory for 11 months lease agreement, registration offers a layer of security to the landlord in case the tenant refuses to vacate or pay rent.
11. It is also helpful so that neither party can harass the other in the future.
12. So, if it has been decided that seepage or cracked walls should be repaired within 30 days, and the owner fails to address these, the tenant has the right to get the work done and deduct the expenses from the rent.
13. In case the owner raises an objection, the tenant can approach the police or a civil court on the basis of the registered agreement.
14. However, expenses on renovation or maintenance caused by the tenant's own negligence, such as a broken window pane or damaged doors, will not be considered for deduction from the rent.
15. Having to spend an amount compulsorily for stamp duties in any rental agreement, it is prudent to opt for a possibly longer lease period and register the agreement by paying the additional flat rate, by sharing these expenses equally to have "legal peace of mind" for both parties.