Protecting property: Before you decide to let
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The broker may assist you in negotiations, rent finalisation as well as deposit amount, confirming the mode and period of payment, finding the antecedents of the customer, execution of agreement, registration, and police verification. For owners with spare flats that have to be regularly rented out, having a fixed broker is usually beneficial as renewals are regular and in some cases, brokers can be appointed on monopoly basis or sole-renting arrangements. Further, brokers themselves advertise the property through newspapers and websites and their expertise would be invaluable in evaluating the prospects.
When finalising a rental transaction, one comes across three types of legal documents: rental agreement, lease deed and leave and licence agreement. One of the three is executed when a property is given on rent. However, the three types of documents are different in their objectives, but are used interchangeably, which is incorrect.
When a flat is given on a period of 11 months or less, it is governed under the leave and licence agreement. There is no transfer of interest, only permission is granted to stay on the property.
The draft of leave and license agreement is also available on the various websites but there is always something more specific about that particular flat or the owner or the deal which needs to be added to the agreement and that is where the legal expert comes in.
If the tenure is more than 11 months then registration is compulsory. In fact, it is in the best interest of both the parties to register the document irrespective of the tenure as only the registered documents have legal validity in the case of any dispute. The usual practice is that the cost of registration, stamp duty and other legal expenses are equally divided between the licensor and licensee.