As a tenant or a landlord, you might have come across situations where you have rented out or taken a property on rent respectively without registering a leave and license agreement. While it might seem like a convenient option to avoid paperwork and legal formalities, it is always advisable to register the agreement. Here`s why.
Firstly, a registered leave and license agreement holds legal weight and can be used as evidence in case of any disputes between the landlord and tenant. In case of any breach of agreement, a registered document would be admissible in court and can be used to take legal actions.
Secondly, a registered agreement protects the interests of both the landlord and tenant. It lays down the terms and conditions of the agreement and specifies the responsibilities of both parties. It also states the duration of the agreement, rent amount and other necessary details. In case of any disagreements or misunderstandings, both parties can refer to the registered agreement to resolve the issue.
Thirdly, a registered leave and license agreement is essential for obtaining police verification and for address proof purposes. It is also required for availing of various amenities such as getting a gas connection, applying for a bank loan, or opening a new mobile connection.
Lastly, it is a legal requirement to register a leave and license agreement under the Registration Act of 1908 as it creates a legal record of the transaction. If you fail to register the agreement, you might face legal consequences such as penalty or imprisonment.
In conclusion, registering a leave and license agreement is crucial for both parties involved in a rental transaction. It provides legal protection, specifies the terms and conditions of the agreement, and acts as proof of address which is essential in today`s times. So, always make sure to register your leave and license agreement for a smooth and hassle-free renting experience.