FAQ's

Any person who is legally capable of entering into a contract may act as a witness other that the parties to the agreement.

Total 2 witness. Both the witness should have Aadhaar and PAN number and should be available at the time of execution.

The agreement should contain the provision of termination. Typically, the agreement may be terminated by

• Mutual agreement between the parties or;
• On breach or default by either party of the terms of the agreement or;
• On expiration of the duration of such agreement.

Other than what is agrees under the agreement, on the termination of the agreement, the licensee should vacate the property and the licensor should return the security deposit.

A clause on escalation of license fee can be include in a Leave and License Agreement and it will not convert a license into lease.
However, in a State like Maharashtra if an automatic renewal clause is incorporated in the leave and license agreement which makes the Leave and License Agreement for a period of more than 5 years, then stamp duty will have to be paid as payable on lease agreement.

Maharashtra Rent Control Act, 1999.

As per section 23 of the Registration act, 1908, the document should be presented for registration with 4 months of date of execution.

Stamp Duty is a kind of tax like Sales Tax or Income Tax i.e. an amount you have to pay to the Government when you enter into a particular transaction through an agreement. It is called "Stamp Duty" as the amount is to be paid executing a written document on stamp paper.

The stamp duty varies from State to State and is dependent upon the nature of agreement. It must be paid in full and on time to the Government. In case of delay in payment of stamp duty, penalties are imposed.

The Indian Stamp Act, 1899 as applicable in the respective States or the Stamp Act enacted by the States lay down the guidelines and the method of calculation of the stamp duty.

The sub-registrar can refuse the agreement if full stamp duty has not been paid. The authorities have the right to impound inadequately stamped documents and require the payment of the differential stamp duty together with any penalty, fine or interest. Inadequately stamped documents are also such inadmissible as evidence in Court for purpose of enforcement of such contracts.