Renewal of Leave and License Agreement in Mumbai: A Guide for Tenants and Landlords
If you are a tenant or a landlord in Mumbai, chances are you have had to deal with a leave and license agreement at some point. A leave and license agreement is a legal document that governs the relationship between a landlord and a tenant. It outlines the terms and conditions under which the tenant is permitted to occupy the property, including the rent, deposit, duration of the agreement, renewal options, and other important details.
When the duration of the leave and license agreement is coming to an end, both the tenant and the landlord need to decide whether to renew the agreement or not. In this article, we will discuss the process of renewing a leave and license agreement in Mumbai.
What is a Leave and License Agreement?
A leave and license agreement is a legal document that establishes the terms and conditions under which a tenant can occupy a property. It is a lease agreement that grants a tenant the right to live in a property for a specified period in exchange for rent.
The leave and license agreement is usually for a period of 11 months, as per the Maharashtra Rent Control Act, 1999. The agreement can be renewed at the end of the 11-month period, provided both the tenant and the landlord agree to the terms of the renewal.
How to Renew a Leave and License Agreement in Mumbai?
The renewal of a leave and license agreement in Mumbai is a straightforward process. It involves the following steps:
Step 1: Check the Renewal Clause
While drafting the leave and license agreement, both the tenant and the landlord should include a renewal clause. This clause specifies the terms and conditions under which the agreement can be renewed. Before initiating the renewal process, both parties should review this clause and ensure that they agree to its terms.
Step 2: Negotiate the Renewal Terms
Once both parties have reviewed the renewal clause, they should negotiate the renewal terms. These terms can include the rent amount, deposit, duration of the renewed agreement, and other details. Both the tenant and the landlord should be clear about their expectations and negotiate a fair and reasonable agreement.
Step 3: Draft the Renewal Agreement
After negotiating the renewal terms, the tenant and the landlord should draft a renewal agreement. This agreement should include the terms and conditions agreed upon during the negotiation phase and any other relevant details. The renewal agreement should be signed by both parties and attested by two witnesses.
Step 4: Register the Renewal Agreement
Once the renewal agreement has been signed, it should be registered at the nearest Sub-Registrar`s office. The registration fee is based on the rent amount specified in the agreement. The tenant and the landlord should bring original copies of the previous agreement and the renewal agreement along with two witnesses.
Renewal of a leave and license agreement in Mumbai is a necessary process that should be handled carefully by both the tenant and the landlord. It involves negotiating the renewal terms, drafting a renewal agreement, and registering the agreement at the Sub-Registrar`s office. By following these steps, both parties can ensure a seamless renewal process and a continued harmonious relationship.