A lease that is for more than a year, from year to year, or that reserves annual rent must be registered under section 107 of the Transfer of Property Act. But what if lease agreement is not registered? An unregistered lease may severely affect the enforcement of the right. Such an act will not be allowed to be used as proof.
What If There is Non Registration of Lease Agreement?
Failure to register a lease agreement in India can lead to several legal and practical issues. Some of them are.
An unregistered lease agreement may not be legally enforceable in court. This means that if a dispute arises, a court may not recognize the agreement as valid evidence.
Failure to pay the required stamp duty on the lease agreement results in penalties and fines.
Without registration, tenants may face difficulties in asserting their rights, such as protection against eviction or claiming security deposit refunds.
Landlords may also face challenges in enforcing the terms of the lease, such as collecting unpaid rent or evicting tenants for breach of contract.
Unregistered agreements can lead to property disputes, as there is no official record of the tenancy terms and conditions.
To avoid these issues, it is important to register lease agreements.
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What are the Conditions of Lease Agreement
What If Lease Agreement is Not Registered?
Gunjan77
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2025-03-19T14:26:14+00:00 2025-03-19T14:26:15+00:00Comment
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