In some countries, the registration of a rental contract in a public register is mandatory; in other countries, it can be seen as an advantageous instrument for tenants and landlords, particularly with regard to third-party claims. A first right of refusal determines who should have the first opportunity to acquire the lease when the tenant`s business is sold. Otherwise, it could give the tenant the right to buy the property if the owner wishes to sell it. A first right of refusal does not require the acceptance of an offer or the maintenance of offers that do not conform to the current market rate, unless otherwise specified in the contract. However, it is important that the falling sale be made under the same conditions as those that result in the right to a first refusal. In some cases, a registered appraiser may be used to determine a fair market price, which is set in the contract. However, Hungarian land authorities maintain separate records of arable land use (the arable crop register). Leases (and other agreements) for arable land in Hungary (excluding forests) must be declared and registered by the jurisdiction. Nevertheless, the right to use a particular property (whether it is a farm or a non-agricultural agriculture) may be registered in the real estate register on the basis of a contract of use or a court injunction. However, these registrations are never based on leases, but on user agreements in which no consideration is paid for the use of the property. Until a lease is registered at the shelter, it has no validity. It is in favour of both parties to draw up an agreement with certain conditions and to register it.
After the lease is written, the owner should print it on stamp paper. As soon as the tenant and landlord sign the documents in the presence of two witnesses, they must report them to the sub-registry service after payment of the necessary fees. However, due to the strict interpretation of the law, a violation of this legal provision on rent registration can lead to penalties of up to 331 euros. But in this area too, it is customary that, even if the legal registration of leases is not respected by the parties, the register does not impose sanctions and it is really unusual to follow an administrative procedure in this regard. In the context of a rental agreement, “make good” is the procedure by which the tenant influences the repairs of the building after the removal of the goods. In particular, it often refers to repairing damage to walls caused by devices such as wall coverings, but it can relate to any other form of damage. In summary, the decision on whether or not to register a lease depends primarily on the jurisdiction. In countries where voluntary registration is possible, it is essential to properly assess the pros and cons of registration, especially with regard to your position in the pre-contract report. For one-on-one consultation, consideration should always be given to advising a legal practitioner in the relevant jurisdiction. In this article, we have attempted to address some important aspects of stamp duty payment and the registration of leases and the associated risks. In order to promote rentals in India, the government has drafted a draft directive, the Model Tenancy Act, 2020, to make the transaction advantageous to both landlords and tenants. The provisions of this model policy should be the guiding principles for the development of a lease agreement.
According to the union secretary, the policy, which will likely soon replace existing rental housing laws across India, will unlock via a Crore apartment on rental markets in India.