What to pick registered rent agreement or Notarized rent agreement?
In the short word- If you are going for a lease period less than 12 months notarized could work just fine otherwise make sure to sign the registered rent agreement. Remember 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.
Accordingly section 17 of registration act 1908
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 must be registered otherwise any lease agreement(Unregistered) wont 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
|Less than 5 year||2% of 12 month avg. rent (A security deposit of Rs 100 will also need to be paid.)|
|5-10 years||3% of 12 month avg. rent|
|10-20 years||6% of 12 month avg. rent|
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. You can locate the address below-
RENT AGREEMENT FORMAT