When planning to occupy a residential property on rent in Chennai, you need to be completely aware of the rent agreement process. Any mistake in the rent agreement, can lead to costly tenancy disputes. A rent agreement stipulates the terms and conditions mutually agreed upon between the tenant/renter and the property owner (landlord). The rules and processes related to the rent agreement can vary according to city and state. So, you should understand the rent agreement rules accordingly, depending on which city and state the rental property is located in.
What is the process of making a rent agreement in Chennai?
Here are the steps to create a rent agreement in Chennai:
- The first step towards preparing a rent agreement is to obtain ‘mutual consent’. Both parties, i.e., the landlord and the tenant, must give their consent to the rental terms and conditions. The terms and conditions should include points that cover the security deposit, rent amount, maintenance charges, notice period, rent tenure, etc.
- The next step is to print the terms that have been mutually agreed upon on a stamp paper of due value. Once the agreement is printed, it is advisable for both parties to read all the points once again, to avoid any discrepancy.
- If all the points are correct, both parties should sign the agreement in the presence of at least two witnesses.
- The next step is to get the deed registered at the local sub-registrar’s office.
- You can avail of facilities provided by Housing.com to easily complete the steps mentioned above and create an online agreement which is quick and hassle-free.
Is rent agreement mandatory in Chennai?
The Registration Act, 1908, mandates registration of a lease agreement if the occupancy tenure mentioned in the agreement is more than 12 months. So, to avoid stamp duty and registration fees, people sometimes prefer to make the lease/rent agreement for 11 months. On the expiry of the 11 months period, if the parties agree, they draw a new agreement for the next 11 months.
In Chennai, it is mandatory to register the rent agreement with the rent authority, irrespective of the rental tenure.
See also: Laws related to registration of property transactions in India
Is it mandatory to register a rent agreement in Chennai?
The Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017, (TNRRRL) mandates a written rent agreement and its registration, irrespective of agreement’s tenure. Registration of rent agreement is mandatory in Tamil Nadu even if the rental period is less than 12 months. Only written agreements can be registered and become legally enforceable. Oral agreements cannot be registered and therefore, have no legal sanction.
The absence of a rent agreement or mistakes in the wordings of the agreement, can result in disputes and drag one into long legal cases. If you are planning to rent out your apartment or looking to shift to a rented home, you should carefully make a rent agreement to avoid disputes and a legal battles in the future.
How can you register a rent agreement in Tamil Nadu?
It is the landlord’s responsibility to get the rent agreement registered. To register the rent agreement, you can visit the nearest sub-registrar’s office. According to the TNRRRL Act, it is mandatory to register the rent agreements with the rent authority within 90 days from the date of its execution. At the time of the registration, both parties must remain present, along with two witnesses. In the absence of either or both parties, the registration can be executed by the power of attorney-holders who hold the rights to finalise the agreement.
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Documents required for registration of a rent agreement in Chennai
The following documents are needed for the registration of a rent agreement in Chennai:
- Original/copy of the title deed, as proof of ownership.
- Tax receipt or Index II.
- Address proof of both the parties. It can be a photocopy of one’s passport, Aadhaar card, driving licence, etc. Keep the original ID cards with you for verification.
- Two passport-sized photos of both, the landlord and the tenant.
- Identity proof such as a copy of the PAN card or Aadhaar card.
- The rent agreement printed on stamp paper.
See also: How to conduct TN police verification of tenants
Benefits of online registration of rent agreement in Chennai
Offline rent agreement registration can be a time-consuming process for most people living in Chennai. Online registration is now available in Chennai. The online rent agreement process is highly reliable, transparent and cost-effective. It can save both, time and money. There are some well established companies, which offer hassle-free online rent agreement services to their customers. You can use their platforms, from finding a home on rent to getting the rent agreement registered.
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Online rent agreement facility by Housing.com
Housing.com provides an instant facility to create online rent agreements. The agreement is mailed to the parties, i.e., both, the landlord and the tenant. The agreement can be created from the comfort of one’s home. The process is contact-less, hassle-free, convenient and quite cost-effective, as well. Currently, Housing.com provides the facility to create online rent agreements in 250+ cities of India.
What is the cost of rent agreement registration in Chennai?
The cost of rent agreement registration in Chennai includes stamp duty, registration fee, the legal advisory fee (if you hire a legal advisor), etc. In Chennai, you can get the e-stamped agreement paper and print the rental agreement on it.
Stamp duty on rent agreements vary from state to state.
The stamp duty applicable on the rent agreements in Tamil Nadu, for a period of up to 30 years, is 1% of the rent plus the deposit amount.
Apart from stamp duty, registration charges in Chennai are around 1%, with a maximum ceiling of Rs 20,000.
If you hire a legal expert to draft a rent agreement and get the agreement registered, it may cost you an extra sum.
Points to keep in mind when making a rent agreement
Rent agreements are crucial documents for both, the landlord and the renter. Here are some important points to keep in mind when making a rent agreement:
- The landlord is allowed to include a clause in the agreement that stipulates an increase in rent, in compliance with the TNRRRL Act. If there is an improvement or deterioration in the quality of the rented premises, the rent can be revised upward or downward, on mutual written consent by both parties.
- The tenant is entitled to receive a rent receipt for payment of rents.
- The notice period by both, the landlord and the renter, should be mentioned in the agreement.
- Details of the rent agreement should be mentioned clearly.
- Details pertaining to fittings and fixtures, should be mentioned in the rent agreement.
- While creating a rent agreement in Chennai, you must cover critical points such as provision of parking, provisions related to pets, permission for structural changes, etc. Getting into a legal battle can be a long and painful process.
- According to the TNRRRL Act, the security deposit shall be refunded to the tenant within one month after vacation of the premises, after making due deduction of any liability of the tenant.
FAQs
What is the obligation of the landlord toward the tenant for entitlement of rent receipt?
According to TNRRRL Tenancy Act 2017, all tenants are entitled to get rent receipt.
Are tenants entitled to get a copy of the rent agreement from the landlord?
Yes, tenants are entitled to get a copy of the rent agreement from the landlord.
Amit Sethi is an accomplished professional with a distinguished background, holding an MBA in Finance. As an Independent Journalist and Data Provider with 20 years of invaluable experience, his expertise lies in meticulously covering stories on Real Estate, Personal Finance, Business and Banking. He writes journalistic content for leading media publications in India and also provides analytical data to real estate and fintech companies. Amit is driven by a purpose to disseminate insightful narratives, using verified information to empower individuals with financial literacy. Through his work, he aims to assist people in staying aware and making informed decisions that positively impact their financial well-being. Amit is a fitness freak, a marathoner and likes trekking.
