In recent years, the real estate market in Haryana has grown rapidly, which has led to an increase in the number of people who rent out their properties. Renting out your property to someone can be a great way to earn extra income, but it`s important to make sure you have a legal agreement in place that protects both parties involved. One such legal agreement is a Leave and License Agreement, which is commonly used in Haryana.
A Leave and License Agreement is a legal document that allows a licensee (the person who is renting the property) to occupy a property owned by a licensor (the person who is renting out the property) for a specific period of time. The agreement outlines the terms and conditions of the lease, including the rental amount, security deposit, and any additional fees associated with the property.
In Haryana, Leave and License Agreements are governed by the Haryana Registration and Regulation of Societies Act, 2012. According to this act, all Leave and License Agreements must be registered with the Sub-Registrar of the area where the property is located. Failure to register the agreement can lead to legal disputes and penalties.
One of the most important aspects of a Leave and License Agreement is the rental amount. In Haryana, landlords are not allowed to charge more than two months` rent as a security deposit. Additionally, the rental amount must be fixed and cannot be increased during the period of the agreement unless both parties agree to it in writing.
Another important aspect of the agreement is the duration of the lease. In Haryana, a Leave and License Agreement cannot exceed 11 months. If the lease is for a period longer than 11 months, it must be registered as a lease deed under the Indian Registration Act, 1908.
It`s also important to note that a Leave and License Agreement is not the same as a rental agreement. A rental agreement gives the tenant the right to possess the property, whereas a Leave and License Agreement only gives the licensee the right to use and occupy the property for a specific period of time.
In conclusion, if you`re thinking about renting out your property in Haryana, it`s important to have a legally binding agreement in place. A Leave and License Agreement can provide both the landlord and the tenant with important protections and ensure that the relationship between the two parties is clear and transparent. Make sure to consult with a lawyer or legal professional to ensure that your agreement is drafted correctly and in compliance with all applicable laws.