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Below is a list of the most common customer questions. If you can’t find an answer to your question, please don’t hesitate to reach out to us.
What if lease agreement is not registered?
Registration at Land Registry constitutes notice of the lease to all parties and for all purposes. If the lease is not registered, it follows that this notice is not given. The consequence of this is that a landlord may not be able to recover unpaid rent from the guarantor if the tenant fails to pay.
Is it mandatory to register a lease agreement?
According to the Registration Act, 1908, lease agreement registration is mandatory if the leasing period is 12 months or more than that. If a rent agreement is registered then it is also mandatory to pay registration fee and stamp duty.
Do lease agreements need to be registered?
Advocates & Consultants, every lease agreement should be registered because only then it can be used as evidence in the court in case of any litigation. However, as per Section 17 of the Registration Act 1908, it is compulsory to get the agreement registered only if the lease period is more than 11 months.
Is unregistered lease agreement valid?
Any rental agreement unregistered is valid only for 3 years, and it is a valid document to initiate any legal action against the tenant, and registration is optional. “ Any rental agreement for a period beyond one year is to be registered, and it is not three years. Rent control act differs and not the Registration act.
Can rental agreement be registered?
The registered rent/lease agreement is a legally binding document. Non-Registered Agreement: If the rent/lease agreement that you are preparing is for a period of less than 12 months, then, you do not need to register the rent/lease agreement.
What happens if you don't register a lease?
Registration at Land Registry constitutes notice of the lease to all parties and for all purposes. If the lease is not registered, it follows that this notice is not given. The consequence of this is that a landlord may not be able to recover unpaid rent from the guarantor if the tenant fails to pay.
Does a 3-year lease need to be registered?
A lease is not registrable in its own right. But, as it is for a term of more than 3 years, HM Land Registry will, upon application, note it on the Landlord's registered superior title.
When must commercial leases be registered?
Modern commercial leases are normally required to be registered if they're granted for a period of more than seven years. If the period is for less than seven years, then registration typically isn't needed. This is the case for both sub-leases and head-leases.
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