A rental agreement has important terms and conditions mutually accepted by the tenant and landlord. The registration of a rental agreement is important for it to be legal and valid. With growing tenancy disputes, it is vital to draft a comprehensive rental agreement and register it at the nearest sub-registrar’s office.
Many times, landlords and tenants skip registering rental agreements, sometimes to avoid the registered rent agreement cost and sometimes to save time. In these cases, things are settled verbally, or if a rent agreement is made, it is never registered and is not legally a valid document.
What is a rental agreement?
A rental agreement is a contract signed between a landlord and a tenant stating that the tenant can occupy the landlord’s residential premises for a certain time. It is a detailed document to avoid future disputes on a property, rent, maintenance, and other factors.
What is a registered rent agreement?
When a rent agreement is stamped by the sub-registrar’s office, online or offline, it is considered registered. This is the only way for your rent agreemental to be legal and valid.
Why is a rental agreement important?
For a dispute-free relationship between a landlord and a tenant, it is vital to have a rental agreement, as it protects the rights of both parties. A rental agreement has details like rent, who owns the property, rent agreed upon, the condition of the property (which is how it should remain when the tenant leaves), items belonging to the landlord that the tenant has to leave behind, and much more. A registered rent agreement is an authentic document that can be presented in a court of law in case of a dispute.
When to register a rental agreement?
While it is not mandatory to register a rental agreement for less than one year, it is in everyone’s interest to have them registered. It may be time-consuming, but it assures a better resolution in times of conflict.
Except for Jammu and Kashmir, the Registration Act of 1908 applies to all states. According to the act, a ‘lease’ includes commercial property, residential property, undertakings leased for cultivation, hereditary allowances, fisheries, ferries, rights to ways, lights, and any other benefit arising from the land (excluding timber or crop cultivation).
How to register a rent agreement?
Rental agreements are registered at the sub-registrar’s office. The registration and expiration dates should be at least four months apart.
To register the rental agreement, both the parties – the tenant and the property owner – should sign the documents in the presence of two witnesses and pay the fee. If either of the parties is not present at the time, they must sign the Power of Attorney, granting the attorney the rights of agreement closure.
What is the format of a rental agreement?
Here is a basic format of an 11-month rent agreement.
Rent Agreement
This rent agreement is made on this _ (date) by _______ (name of the landlord) S/o ___ (father’s name of the landlord), Address: _______________________________________ (residential address of the landlord). Hereinafter called the Lessor/Owner, and first party
AND
_________________ (Name of tenant), called lessee/tenant, or second party
The expression Lessor/Owner and the Lessee/Tenant shall mean and include their legal heirs successors, assigns, representatives etc.
Whereas the first party is the owner and in possession of the property No: ___________________________________________________________________________________ (address of rented property) and has agreed to let out the said property to the second party for a monthly rent of Rs. /- (in words) per month.
Now This Rent Agreement Witness As Under:
That the second party will have to pay Rs. /- (in words) as monthly rent, which does not include electricity and water charges.
That the second party shall pay one month’s rent in advance to the landlord that would be further adjusted in the monthly rent.
That the second party shall pay the water and electricity charges on the basis of the consumption to the landlord/owner.
That the second party shall not lease the property to a subtenant under any circumstances without the consent of the owner/landlord.
That the second party shall follow all the rules and regulations, and by-laws set by the local authorities in respect of the leased property and will not get involved or do illegal activities on the leased property.
That this rent agreement is granted for a period of eleven (11) months starting from , and this contract can be extended further with the mutual consent of both parties.
That the second party shall not be permitted to do construction in the rented premises. Besides, he/she could do the installation of temporary decoration, wooden partition/cabin, air conditioners etc. without seeking the permission of the landlord.
That the second party is not allowed to make any alteration to the rented property without the written consent of the owner.
That the second party will have to allow the landlord or his authorised agent to enter into rented premises for its inspection or general checking for any repair work if needed.
That the second party shall keep the premises clean.
That the second party shall bear the cost of day-to-day minor repairs.
That this contract/agreement could be revoked before the expiry of this tenancy period by serving a one-month prior notice.
That both the parties have read and understood this agreement and have agreed to sign the same without any pressure from any side.
In WITNESS WHEREOF
The landlord and the tenant have hereunto subscribed their hand at (place) on this the ______ (date of rent agreement) year first above mentioned in presence of the following witnesses.
Witnesses:
1.
2.
(name of the landlord) ______ (name of the tenant)
Lessor Lessee
Documents required for rent agreement registration
1. Documents by the landlord
- Two passport-sized photos.
- Aadhaar card.
- ID proof (Driving Licence, Aadhaar Card, Voter ID, Passport).
2. Documents by the tenant
- Two passport-sized photos.
- Aadhaar card.
- Voter ID card.
- Passports for people from outside India.
Details required in a rental agreement
A rental agreement should contain the following details:
- Names and addresses of the landlord and the tenant
- Signatures of the tenant and the landlord
- Monthly rental amount
- Security deposit
- Maintenance charges
- Period of stay
- Responsibilities/rights of the landlord
- Responsibilities/rights of the tenant
The registered rent agreement cost
- Stamp duty will vary from state to state. This is the amount paid to buy stamp paper. In Delhi, the stamp duty is two per cent of the average annual rent for a rental agreement for up to five years.
- Some states have an e-stamping facility for rental agreements. Log on to the Stock Holding Corporation of India Ltd (SHCIL) website and check if your state offers this facility. Assam, Uttarakhand, Gujarat, Karnataka, Himachal Pradesh, Maharashtra, Delhi-NCR, Uttar Pradesh and Tamil Nadu allow e-stamping of rent agreements.
How to make a rent agreement online?
Numerous online platforms, like MyGate, offer such services. All one needs to do is to:
- Enter the necessary details (landlord, tenant, property address), terms and conditions (lease duration, monthly rent, security deposit amount, etc.).
- Make a payment of the applicable stamp duty and other charges.
The online rent agreement will be printed on stamp paper of appropriate value and delivered to the relevant address. For a soft copy, one may ask for the online rent agreement to be sent to their email, along with an e-stamp. The rent agreement hard copy delivery time is between three and five working days.
If you have any questions about how to get a rent agreement online, these online platforms have detailed answers to all your queries.
Can an online rental agreement be registered?
The online rent agreement registration is possible in 12 states with their own online registration portals. The landlord has to create a profile at one of these portals, enter all the details, and make payment of the stamp duty and other charges by generating an online challan receipt. During the process, e-signs, photos, thumb impressions, and KYC of both parties are also required.
You can check the registration status by logging into the website and through SMS.
Summary
As India is witnessing a larger population shift to urban areas, a faster and more seamlessly aligned procedure to register rental agreements becomes mandatory. While offline rental agreement registration is the traditional method, online rent agreement registrations have grown in popularity due to their convenience while remaining legal and valid. Choose the method that works for you, but make sure to register your rental agreements.
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