Property Knowledge: Disputes over possession of property often arise between the landlord and the tenant. To avoid this, the property owner should prepare such documents so that the tenant can never challenge it. Today we are telling you about one such document.
Property Knowledge: There are often reports of disputes between landlord and tenant. It is normal to have disputes over small matters, but many times this dispute is over the possession of the property in which tenants live. To avoid this, landlords started making rent agreements, but even today disputes over claim of possession are increasing. But, today we are telling you about such documents, which will completely reject this claim of the tenant.
As of now, arrangements for rent or lease agreements are in place to protect the interests of landlords. Despite this agreement, tenants have tried to take over the house on a large scale. In response to this, property owners have now started adopting the option of ‘Lease and License’ agreement. Lease and license is also much like a rent or lease agreement or rent deed. Simply, some clauses written in it are changed. Property expert Pradeep Mishra is giving complete information about how lease and license is made and what are its benefits.
This is entirely in favor of the landlord
Be it rent or lease agreement or lease and license, all these documents are made unilaterally to protect the interests of the landlord. So that, the possibilities of the tenant taking possession of the property can be eliminated. Therefore, it is clearly mentioned in it that the owner of the property is giving it to the tenant for residential or commercial use for a fixed period of time. This period of time can range from 11 months to a few years. If the tenant is taking the property for residential use then it will not be used for commercial use. If the agreement is not extended, the tenant will have to vacate. In lease and license, the landlord is referred to as ‘Licensor’ and the tenant as ‘Licensee’.
What is the difference between the two?
Rent agreements are generally made for residential properties for a period of 11 months. Whereas lease agreement is used for a period of 12 or more months. Also, it is generally used for renting out commercial properties. Here, lease and license can be made for a period ranging from 10 to 15 days to 10 years. The special thing is that all these documents can be made on stamp paper only through a notary. Apart from this, if the rental period is 12 years or more, then it is necessary to get it registered from the court, because real estate is a subject of the state list, in such a situation, the registration fee in different provinces of the country is one to two percent of the rent. .
Which document is better between the two?
Lease and license can be considered better than rent or lease agreement. It can be made for a minimum period of 10 to 15 days as well as for a long period like 10 years. Along with this, it is clearly mentioned in it that the licensee i.e. the tenant will not claim or demand any right over the property in any way. Due to this, the landlord retains ownership of the property even if it is in the possession of the tenant for some time. Another good thing in this is that when two parties sign a rent or lease agreement with mutual consent and one of the parties dies, then in those circumstances his successor i.e. the heir can continue that agreement with mutual consent. Can. At the same time, this is not the case in lease and license. It becomes zero upon someone’s death.
Also Read-
- OnePlus Nord and OnePlus 12 series phones become cheap, know offer details
- FD Interest Rates: Higher interest in FD of these banks than PPF-Sukanya Samriddhi, check interest rates here
- NPS New Update: PFRDA changed the fee structure related to NPS Account, know new fee here
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
