Table of Contents
- Legal validity of rent agreement
- Rent agreement format in English and Hindi
- Documents needed for rent agreement registration
- Details to be included in the rent agreement
- Stamp duty on rent agreement
- e-stamping of rent agreement
- Rent agreement: Important terms and conditions
- Is it compulsory to register a rent agreement?
Since home ownership may sometimes be inconvenient or unaffordable, a majority of the migrant working population in India’s major cities live in rented homes. For this, the tenant signs a rent agreement with the landlord, which includes the terms and conditions that shall be binding on both the parties.
To promote rental housing in India, the government has formulated a draft policy, to make the transaction beneficial for both, landlords and tenants. The provisions laid under this model policy, should be the guiding principles while drafting a rent agreement.
Legal validity of rent agreement
Until a rent agreement is registered with the sub-registrar’s office, it has no legal validity. It is in the favour of both the parties, to draft an agreement with specific terms and conditions and to get it registered. After drafting the rent agreement, the landlord should print it on stamp paper. Once the tenant and the landlord sign the documents in the presence of two witnesses, they should register it at the sub-registrar’s office, after paying the required fee.
Rent agreement format in English and Hindi
Click here to check out the format of a rental agreement in English.
Click here to check out the format of a rental agreement in Hindi.
Documents needed for rent agreement registration
Details to be included in the rent agreement
Key details included in a standard rent agreement are:
- Names and addresses of the tenant and the landlord.
- 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.
Stamp duty on rent agreement
You have to pay a stamp duty while registering the rent agreement, which will vary, depending on the city where it is registered. This amount is paid, by purchasing the stamp paper of value you owe to the government. In Delhi, the stamp duty is payable at 2% of the average annual rent, in the case of lease agreements for a term of up to five years. In Noida, one has to pay 2% of the annual rent as stamp duty, for rent agreements of up to 11 months.
e-stamping of rent agreement
In some states, where the e-stamping facility for rental agreements is available, you do not have to physically buy the stamp paper. You can log on to the Stock Holding Corporation of India Ltd (SHCIL) website and check, if the state where you reside offers this facility. Presently, Assam, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Delhi-NCR, Tamil Nadu, Uttarakhand and Uttar Pradesh, allow e-stamping of rent agreements.
Rent agreement: Important terms and conditions
Security deposit and token amount: The agreement must clearly mention the security deposit and what happens to it, when you leave the premises. It should also mention the token amount that the landlord has received from you.
Number of occupants: The agreement must state what happens, if your family members join you in future.
Repairs: The agreement must mention who will bear the costs associated with wear and tear.
Maintenance: The agreement must clearly state who will be liable to pay the monthly maintenance charges.
Visitors: The agreement must include a clause on who can visit you and at what time.
Pet policy: Do check out if your landlord will allow you to keep pets, if you were to adopt one.
Conditions to vacate your property.
Damages to property and its consequences on the tenant.
Rules on subletting.
Is it compulsory to register a rent agreement?
Note here that notarised rent agreements are not the same as registered documents. In case of a dispute between the landlord and the tenant, the court will not admit a notarised agreement as proof. Hence, it is important to get the rent agreement duly registered.
Why rent agreement is for 11 months?
The Registration Act, 1908, makes it mandatory for a lease agreement to be registered, if the leasing period is more than 11 months.
What should be included in a rental agreement?
The rent agreement should include the names and address of the landlord and tenant, terms of the tenancy, period of tenancy, rent and security deposit amount, restrictions on both parties, conditions for termination of the agreement, conditions for renewal and details of who should bear other charges such as maintenance charges, repairs, etc.