Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 froze the rents at 1940 rates or the rates decided by courts. As an alternative, rent controlled properties were allowed to be sold from one tenant to another at something approaching market rates, through the pagdi system. Leave and license agreements worked outside the rent control system. So, in 1973, the Maharashtra government brought the houses previously operated under this under the rent control. The Maharashtra Rent Control Act 1999 replaced the 1947 legislation, however, the control still retains in most part of it.
Maharashtra Rent Control Bill passed in 1999 aimed at uniforming three different rent control laws operating in the state of Maharashtra in a single framework. The Rent Control Act in Maharashtra brought several changes in the Bombay Rent Control Act that previously existed. However, a substantial chunk of the island city of Maharashtra- Mumbai, still comes under the ambit of Bombay Rents, Hotel and Lodging House Rates Control Act, 1947.
Rent Control is a state subject. The model Residential Tenancy Act 2011, is a new rule for property registration in India issued by the Union ministry of housing proposes legislation to cap rentals. The legislation is yet to come as the tenant association in the state have condemned this. They claim that the move will ruin Mumbai’s rental system and will leave many homeless.
It clearly spells that the ownership confers both rights and obligations upon the holder. Therefore, the duties and the privileges of the landlord are clearly spelled.
Fixing and increasing rent: From the date of the commencement of the Act, a landlord can fix the rent and increase the same at a rate of 4% per annum. The rent can be increased by 15% for the purpose of improvements and alterations in the premises. Excluding the repairs done by the Maharashtra Housing and Area Development Authority (MHADA), a landlord is liable to increase the rent by 25% per annum for structural repairs.
Duty to keep premises in good repair: landlords are also accountable to keep the premises good and repairable by the tenant.
Conditions of eviction: a landlord shall be entitled to recover his property if the court feels that the premises are reasonably and required bonafide by the landlord. However, recovery of premises cannot be done as long as the tenant pays the rent and its permitted increase.
Rules relating to the rebuilding of premises
Mandatory registration of leave and license agreement
Tenant’s perspective is protected. In case of his death, any relative residing with him at the premises at the time of his demise steps into his shoes by law.
Stamp duty is a kind of tax levied at the time of registration of a property. Most of the transactions for the payment of stamp duty are done digitally or through demand draft. Union government’s decision to demonetize has reduced the stamp duty collection in Maharashtra by 37%. According to Inspector General of Registration (IGR) Maharashtra, the average earning through property registration and stamp duty charges has come down from 65 crore rupees to 42 crore rupees post demonetization. It is the IGR office that registers all types of property deals; sale and purchase of land, properties, rent and lease agreements. It is the second largest (next to excise) revenue generating department of the state government.
Stamp duty and Registration Laws regulate the rate of stamp duty to pay on various instruments of transfer of immovable property. In Maharashtra, it is done under the ambit of Maharashtra Stamp Act 1958. According to the Act, the stamp duty is equivalent to 7% of the transaction value. The stamp duty has to be paid before or at the time of execution of the document. The document then has to be stamped as otherwise, it might become impermissible in case of a dispute. As per the law, it is the duty of the purchase of a home to adequately stamp the document. However, if the seller is offering a discount on stamp duty, the clause for the same must be incorporated in the agreement.
Before finalizing the document, one must know how to calculate stamp duty. The stamp duty usually varies from 3 to 10 percent depending upon the slab decided by the state. In Maharashtra, stamp duty amount is fixed for different purposes; sale deed, agreement to sell, gift, leave and license agreement, simple mortgage deed, and equitable mortgage. The percentage also depends upon; status of the property, location of the property, age, and gender of the owner, usage and type of property.
Registration of the immovable property should be the top priority. A person is considered a legal owner only after the registration of the property in his name. Once the agreement is registered and duly stamped, no right, title or interest in the immovable property can be transferred. I case of misunderstandings one can refer the document. It is legally binding and thus, one may reach the court of law in case of disputes or breach of the registered agreement. The documents for stamp duty and registration to be submitted to the sub registrar’s office is the original document printed on one side along with two photocopies of the original document. The registration process requires two witnesses and the payment of registration fees. The registration fees are fixed by the state government and is approximately 1% of the market value or the agreement value.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) collects penalties from those who fail to register themselves and their projects within a specific time period. The authority has collected 60 crore rupees as of now (February 2018) from defaulters. The Registration Penalties depend upon the severity of the case, the strength of the property project and the cause of delay in registration. It is usually 10 percent of the property's estimated cost. The MahaRERA puts up a list of the defaulters and the amount of penalty they are liable to pay. Until 2018, the highest penalty charged is 1 lakh rupees.
The Registration and Stamp Department, the state government of Maharashtra has introduced e-registration module in 2014. The module helps to register the leave and license agreements online from anywhere and any-time without visiting the sub-registrar's office. Stamp duty that is usually collected through non-judicial stamp paper method or franking method has to be paid online through RTGS/NEFT. The stamp duty certificate can then be downloaded for the registration process. It would have the details pertaining to date, stamp duty type etc.Apply for Registered Rent Agreement