Landlord or tenant: Who pays for registration of rent agreement 2025 in Delhi-NCR?

Whenever a landlord and a tenant agree on the terms of renting a property, they should formalise the arrangement through a rent agreement. This legally recognised document is crucial in safeguarding the interests of both parties. For instance, the landlord need not worry about the tenant illegally occupying the property, and the tenant is protected from sudden eviction without proper notice from the landlord.

Under the Rent Control Act, landlord-tenant laws come under the jurisdiction of the individual states, meaning that the implementation of these laws can vary from one state to another. While in some states the responsibility of registering the rental agreement may fall on the landlord, in others, it may be the tenant’s responsibility. In this guide, we focus on the process of rental agreement registration in Delhi-NCR and aim to answer the critical question: who is responsible for paying for the registration of the rental agreement in Delhi-NCR—the tenant or the landlord? Read on for a detailed explanation.

Delhi Rent Control Act: An overview

Initially, the Delhi Rent Control Act was designed primarily to protect tenants’ interests. However, over time, the Act has been amended to maintain a fair balance between the rights of tenants and landlords. This change came about due to the rise in incidents such as land grabbing and illegal property possession, which negatively impacted both landlords and tenants.

Who should register the rental agreement in Delhi-NCR?

As per Section 4 of the Delhi Rent Control Act and the Transfer of Property Act, it is mandatory to have a written rent agreement, and the landlord is responsible for the registration of the rental agreement.

The registration costs for a rental agreement include stamp duty and registration charges. However, if the rental property is a company-leased accommodation (CLA), then the company is responsible for covering the stamp duty and registration costs, not the landlord.

In the case of commercial real estate leases, utility consumption such as electricity and water is typically covered by the lessor and may be included as part of the rent. However, this should not be assumed, and it is important to clearly mention the utilities covered in the rental agreement. To avoid disputes, it is also advisable to specify the units of electricity and water that the lessor will cover, beyond which the tenant would be required to pay additional charges.

Rent agreement Delhi-NCR: Stamp duty and registration charges 2025

*where the consideration value is average annual rent payable mentioned in the document

Registration of Rent agreement Delhi-NCR 2025: Documents required

• Details of property ownership: sale deed, property tax receipt etc. 
• Passport size photos of tenant and landlord
• In case of company lease, letter from company regarding the rental agreement. 
• Address proof of landlord
• Address proof of tenant
• Address proof of property on rent
• Demand draft of the registration amount
• Two witnesses and their photos

How to register rent agreement 2025 in Delhi-NCR?

A well-drafted rental agreement is essential for protecting the interests of both the landlord and the tenant. The following clauses should be included in a rental agreement:

1. Assertion of ownership: The landlord must clearly state their ownership of the property.
2. Tenure: The duration for which the property is rented to the tenant.
3. Amenities and utilities: A list of amenities, facilities, and utilities that the tenant is allowed to use.
4. Terms and conditions: These should cover the tenant’s responsibilities, such as the security deposit, notice period if the tenant wishes to vacate before the lease term ends, fines for damage to property, reimbursement of the security deposit, and scenarios where the security deposit can be forfeited.

• Make a draft of the rental agreement that will include:

1. Name and permanent address of the landlord
2. Name and permanent address of the tenant
3. Address of the property to be put on rent
4. Rental time period 
5. Monthly rent, maintenance cost and security deposit
6. Lock-in period 
7. Notice period in case the tenant has to vacate the property
8. Other terms and conditions that the tenant and the landlord want to include

• Once the tenant and landlord details are verified, print the draft agreement on a stamp paper. Note that since traditional stamp paper is not available in Delhi, one has to opt for e-stamping based on the amount mentioned in the guide from a registered stamp vendor with the Stock Holding Corporation of India Limited (SHCIL). Alternate options are ordering online from SHCIL and getting it home delivered or getting e-stamping done by online payment of stamp duty without the presence of a physical stamp paper. Note that this can be done only in cases where stamp duty is upto Rs 500. 
• Once stamp duty is paid, visit the SRO under whose jurisdiction the property falls and register the rental agreement by paying the registration fees. The registration is complete when the landlord and tenant sign the document in front of the SRO in the presence of two witnesses. 

Is penalty levied in Delhi-NCR if landlord fails to register rental agreement?

Under Section 17 of the Registration Act, 1908, it is mandatory to register a lease agreement if the rental period exceeds 11 months. If a landlord fails to register the rental agreement, they will be subject to a penalty of Rs 5,000 or imprisonment for three months, or both.

Why is it necessary for landlord to register the rental agreement in Delhi-NCR?

A registered rental agreement serves as legal proof in case of any disputes with the tenant or issues regarding the property. For example, if a landlord and tenant sign a rental agreement for a period of less than five years and the tenant refuses to vacate the property after the rental term expires, the landlord can approach the Rent Authority to ensure the tenant adheres to the registered agreement’s terms.

If a landlord avoids registering the rental agreement in an attempt to save on stamp duty and registration charges, they will not be able to seek help from the Rent Authority, as it only acts on registered agreements. In such cases, the landlord may be forced to explore alternative and time-consuming legal routes, such as filing a police complaint or pursuing eviction under Section 106 of the Transfer of Property Act, 1882, which could take years to resolve.

Why should a tenant insist on registering the rental agreement in Delhi-NCR?

Tenants in Delhi-NCR should insist on registering their rental agreement because the Delhi Rent Control Act offers substantial protections against unlawful activities, such as unlawful eviction and unjustified rent increases. However, these protections are only valid when the rental agreement is registered.

A registered rental agreement clearly defines the rental period, outlines the tenant’s obligations, and stipulates the conditions under which the landlord can increase the rent. Additionally, it helps protect tenants if they need to vacate before the end of the lease term, as the agreement will specify the required notice period.

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The risks of not registering the agreement is grave. Some people attempt to save money by notarising the rental agreement at a lower cost, assuming it will suffice in case of a dispute. However, this approach is risky—the notarised agreement does not hold legal validity in court. In the event of a dispute, such an agreement will not be enforceable, and the party facing the issue will be left with no legal recourse.

It is advisable to think long-term and not risk the value of a property worth lakhs or crores just to save a few thousand rupees on stamp duty and registration charges. A properly registered rental agreement provides much-needed legal protection for both the landlord and the tenant.

By ensuring the registration of the rental agreement, both landlords and tenants can avoid legal complications and ensure a smooth and transparent tenancy. It is a small investment that pays off significantly in the long run, providing security and peace of mind for both parties.