Executing a Lease Agreement...

Hi Friends,

Today we can learn how a lease agreement will be executed in the current indian system. The lease agreement which i am talking about was executed in the state of Gujarat.. although the duty might differ... the process would be the same...

A lease agreement is not an ordinary agreement in the sense that one needs to pay a total of 4.9% of the total rent as stamp duty + 1% to the government.

A rent agreement can be done in 2 ways

1. Lease agreement – costly.. but is more worth – 4.9%+ 1% stamp duty
2. Leave and license agreement… can be done on 100Rs. stamp paper…

For eg.
Rent – 10000/mon
Deposit – 60000
Other expenses – 2000/mon

Total – 10000*12=120000, 2000*12=24000, 60000

= 120000+24000+60000 = X * 5.9%
= Y Rs.
= that is the stamp duty we need to pay to the registrar.

Step 1:
Go to the Sub-registrar office… it depends on the location of the property in concern… so if u want to get a lease agreement for a property… at navrangpura… that comes in sheikhpur gam – for which u need to go to Polytechnic sub-registrar office…

Step 2: Get the lease agreement printed… and get the franking worth the same as stamp duty.. So lets say u arrived at a stamp duty of Y Rs. u have to get the franking worth Y Rs.

Step 3: Go to the sub-registrar office with both parties… lessor and lessee… and 2 witnessess… and get the leased done…

So that was … lease agreement in 3 simple steps..

Enjoy!!

~Rajat~