FAQ's
Q1. Which Documents Need Stamp Duty?
A. Documents (in legalese, the term used is ‘instruments’) like on agreement to sell, a conveyance deed, deed documenting exchange of property, a gift deed, a deed of partition, a power of attorney, settlement and deed and transfer of lease – all these attract ‘Stamp Duty’, which is calculated on the ‘market value’ of the property.
Q2. What is Market Value?
A. Market Value is loosely defined as the price of which a property could be bought in the open market on the date of execution of such instrument. The Stamp Duty is payable on the agreement value of the property or the market value which ever is higher.
Q3. Appropriate Authority?
A. This Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property.
Q4. Agreement for Sale/Memorandum of Sale?
A. Stamp Duty is applicable on Agreement for Sale/Memorandum of Sale for immovable property, as prescribed in the Stamp Act of each State. However, it is not compulsory to register Agreement for Sale or Memorandum of Sale.
Q5. Whether Agreement for Sale Can Be Registered?
A. Agreement for Sale or Memorandum of Sale can be Registered, if the parties so desire, within the jurisdictional Registrar of assurance or Sub-Registrar may be prescribed in the rules.
Q6. Immovable Property?
A. It is compulsory to register any transfer of immovable Property recorded in our instrument of Transfer under the provision of Registration Act, 1908.
Q7. Consequences Of Non-Registration Of Documents?
A. In the event of Sale Deed/Conveyance/Transfer Documents, with regards to immovable property of value exceeding Rs. 100/- is not registered, such on instrument is not capable of being admitted in evidence, save and accept after payment of property, before whom such instrument is produced.
Q8. Effect Of Improper Stamping?
A. Any Instrument improperly stamped is not admissible as evidence. And such an instrument is also liable for payment of insufficient Stamp Duty and penalties as may be imposed under the Stamp Act applicable in the state where the property is situated, by the competent authority, before whom such document/instrument is produced.
Q9. How The Deficit Is Recoverable?
A. After exhausting all remedies available (including appeals), if the instrument of Transfer/s/Conveyance is stated to be undervalued and the demand is not paid by the purchaser, the same would be recovered by the Authority appointed under the Stamp Act of each State and the same is recoverable as land revenue dues in several other states. The method of recovery is likely to change from state to state depending upon the Stamp Act as applicable.
Q10. How does one determine the market rental value of a particular property?
A.The market rental value of property can be found out by approaching such people as the brokers, registration authority etc. as there is no prescribed manner for the same.
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Q11. How many months of deposit rent can be landlord ask for?
A.The landlord can ask for a three months deposit rent.
Q12. Is the registration of Leave and Licensor compulsory?
A.Yes, as per Section 55 of the Maharashtra Rent Act, 1999.
Q13. What are the registration charges for a leave and licensor agreement?
A.Presently Registration treats a leave and license agreement like a lease agreement and accordingly determines registration charges.
Q14. Is a leave and license agreement with a bank, PSU, Corporation companies exempt from registration?
A.Section 3 of the Maharashtra Rent Act exempts certain categories of persons. According to that section any premises let or sublet to a bank or any public sector undertaking or a limited company having paid up share capital of one. crore and more is outside the purview of the Maharashtra Rent Control Act.
Q15. If a property is kept vacant for a period of one year, can it be let out at market rent?
A.Yes.
Q16. Now that the Maharashtra Rent Control Bill has come into force and the Pugree has been legalised, what is the percentage of sharing between the landlords and the tenants?
A.No fixed percentage is prescribed by the Act, but the norm is 1/3 share goes to the landlord.
Q17. In case of tenant is not protected by the Rent Act, what is the procedure to ask him to vacate?
A.The general procedure is to send a notice to the tenant, failing which a court case can be filed and it generally takes years to reach a verdict.
Q18. Is there a provision by which a landlord is bound to spend a certain percentage towards the maintenance of his property?
A.No.
Q19. Where does one register new tenancies in Mumbai?
A.With the Registrar of Sub Assurances located at Old Custom House, Shahid Bhagat Singh Road, Fort, Mumbai – 400 001 and at bandra Kurla Complex, Bandra.
Q20. Is one required to register existing tenancies as well?
A.Yes.
Q21. 70% of the tenants are ready to form a society. Is there any new provision in the new rent act for forming a society?
A.There is no new provision in the new Rent Act regarding the prescribed percentage of tenants willing to form a society.
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Disclaimer: The information given is solely for referential purpose and shouldn’t be considered as thumb rule. We hold no responsibility of advice given and people should follow them on their own risk.