Question

why are rent receipts from lessees important for unrecorded retirements of property (land)?

Answer 1

why are rent receipts from lessees important for unrecorded retirements of property (land)?

All these things are done based on Residential Tenancies Act.

1. First of all, lessor is to make sure that the locality in which the property is located influences the decisions of recording or not by consulting a proper attorney.

2. In some areas, leases for less than 30 years are not subject to recordation taxes and in some areas leases for less than 7 years and not subject to recordation taxes where in some leases less than 5 years are not subject to recordation taxes which is subject to the criteria mentioned in point 1.

3, Rent receipts are important because of some of the landlord still receive the payment in offline mode and this record is mainly useful for the landlord/lessor is any thing might go wrong is claiming out his rights.

4. And also, it simplifies by tracking the monthly receipts and gets you a clear idea of what has been going on and what necessary steps are to be taken in order to get a view of receipts and payment.

5. Also, the lessor is to record them in order to file tax returns if he/she exceeds more time period of lease mentioned in the appropriate states whether it qualifies for recordation taxation or not if he/she extends the lease period in the mid way or or the other in order to be safe from the necessary consequences he/she is to face skipping this necessary step/