You have to pay stamp duty and registration charges
Do you have to pay L&L agreement charges every time you renew the contract for the tenant?
What are L& L Agreement charges? law
Legal fees vary depending upon the lawyer engaged by you
stamp duty charges depend upon re take , security deposit taken by you
1. L&L Agreement must compulsorily be registered u/s 17 of the Registration Act, for it to be legally enforceable, during times of disputes.
2. Validity of Registration expires with validity period of the L&L Agreement. Hence L&L Agreement CANNOT be renewed BUT a fresh L&L Agreement shall be duly stamp duty paid and registered.
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Yes, it's 50-50% charges not high hardly it's depends upon rent amount the stamp duty and registration charges are applicable by state government. Minimum 3k maximum depends upon rent amount. And it's 50 % share has to pay by owner and tenant.
Usually it is based on understanding between the parties. There isn't a stringent law or norm on it but yes, you both can take alternative responsibility for paying the charges at the time of renewal or divide the cost equally.
Stamp duty on L&L is usually Rs. 300/- except otherwise specified distinct in the state law in India. Drafting charges and execution(notarizing the same) depends on the industry standard of the place of execution of the lease. It also depends on the nature of the property: Commercial or Residential, Area of the property: in sq.mtrs., Tenure of lease and proportion of the market value of the property against the amount of lease rentals decided between the parties.
- As per law, this agreement should be registered after paying the stamp duty . and this agreement is valid for the period which is given in the agreement .
- Hence for renew the said contract , again stamp duty would be attracted.
As per Section 17 of the Indian Registration Act, which applies to the whole of India, every agreement for leases of immovable property from year to year, or for any term exceeding one year, are required to be registered mandatorily.
The Registration fee varies depending on the property situated in Urban Area or Rural Area on Leave and License Agreement
Stamp Duty will be 0.25% on the complete rent and non refundable or 10% (for each year) of refundable deposit
Registration fees will be Rs. 1000/- if your property comes under Corporation and Rs. 500/- if the property is in Rural Area.