Rent Agreement in Delhi: Registered vs Notarised & Stamp Duty

What to pick registered rent agreement or Notarized rent agreement?

In short: if you are going for a lease period of less than 12 months, a notarized agreement could work just fine; otherwise, make sure to sign a registered rent agreement. Remember, a notarized rental deed isn’t a replacement for a registered deed. It is advisable to get the agreement registered to be entitled to a legal remedy in case of any dispute. Registration creates a legally enforceable right.

A rent agreement is a legal contract signed between the property owner and tenant, this mentions all the details about the property like dimension, address, etc as well as details of owner and tenant. It includes terms like rent amount, maintenance, the period of the agreement, annual increase, electricity and water charges, the penalty for delays in rent, etc.

As per Section 17 of the Registration Act, 1908, registration is compulsory for certain documents. Section 17(1)(d) specifically requires the registration of “leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent”.

In a layman’s term, if the owner has leased the property for more than 12 months or has collected rent including security deposits for 12 months, the agreement must be registered. Otherwise, an unregistered lease agreement of this kind will not be valid as evidence in court.

Process for Rental Agreement:

1. Prepare the agreement (It is suggested to get the rent agreement drafted by a good documentation lawyer who can make sure that the document includes all the relevant provisions.)
2. Print agreement on the stamp paper of due value.
3. Both party should sign the agreement in the presence of two witnesses
4. Register agreement at the sub-registrar office after paying appropriate fees.

Stamp Duty & Registration Charges in Delhi

Besides the above stamp duty costs, Rs 1,100 also need to be paid towards registration charges.

Stamp Duty Calculator: https://eval.delhigovt.nic.in/

Related links: https://doris.delhigovt.nic.in/menu.aspx

Points to be included inside a rent agreement:

• Duration of the Tenancy
• Lock-in period
• Security deposit and monthly rental
• If there is any Penalty for late payment
• Important charges like electricity, water, cooking gas, telephone, internet, maintenance charges, power back-up charges cleaning charges, whitewash, repairs, etc.
• Provision of parking if applicable
• Inventory of materials(fixtures) being provided on the premises. Like all electrical fittings, AC, geysers, furniture and other fixtures, etc
• Prohibition on making any structural changes(alteration) in the premises
• Safety and security conditions
• General up-keeping and peaceful possession of the premises without causing any disturbances or nuisances
• Provisions regarding pets
• Limits on occupancy/sub-letting (generally prohibited by the landlords)
• The notice period for vacating the premises Conditions for the renewal of the agreement
• Illegal Activities prohibited: Illegal activities prohibited to be carried on in the rented property. If the condition is violated it may entail legal consequences.

Documents for registering the rent agreement

The landlord is required to present the following documents for registration:

• Proof of ownership of property, in original
• Aadhar card
• Another government ID proof: driving license, voter ID card or passport
• 2 passport size photos

The tenant, on the other hand, is needed to present the following documents:

• Government ID proofs mentioning the permanent address.
• Aadhar Card
• 2 passport size photographs

How to register the agreement

Delhi has moved from conventional stamp papers to an e-stamping system operated by Stock Holding Corporation of India Limited (SHCIL). The e-stamped agreement papers can be procured from the e-stamping vendors and the draft can then be printed on these papers.

Once it is done, you can visit the Sub-registrar office respective to your district and register the deed, paying the registration fee through demand draft.

Delhi has a separate Sub-registrar (SRO) office for each district. The office where you must register depends on the location of the property being leased. You can find the correct office and its address for your district through the Delhi Government revenue department’s DORIS portal at https://doris.delhigovt.nic.in/menu.aspx, or by checking with your local district administration.

Rent Agreement Format

A standard rent agreement is drawn up on stamp paper of due value and typically contains the following components, in order:

• Title and date: The heading “Rent Agreement” (or “Lease Deed”) along with the date and place of execution.
• Parties: The full name, parentage, age and address of the landlord (Lessor) and the tenant (Lessee).
• Property description: The complete address and description of the premises being let out, including floor, area and any fixtures or furniture provided.
• Term: The duration of the tenancy, with the start and end dates, and the lock-in period if any.
• Rent and deposit: The monthly rent, the due date for payment, the mode of payment, the security deposit amount and the terms for its refund.
• Maintenance and utilities: Who bears electricity, water, maintenance and other charges, and any agreed annual increase in rent.
• Rights and obligations: The duties of both parties, restrictions on sub-letting and structural alterations, and the permitted use of the premises.
• Notice and termination: The notice period for vacating and the conditions for renewal or termination of the agreement.
• Signatures: The signatures of both parties along with the names, addresses and signatures of two witnesses.

It is advisable to have the agreement drafted by a documentation lawyer so that all relevant provisions are correctly included before it is printed on stamp paper and registered.