If you are planning to rent a residential property in national capital Delhi, preparing and registering a rent agreement would be crucial to formalise the process. This article will help you understand the whole procedure.
Rent agreement in Delhi: Is it a must?
Rent agreements legally bind the landlord and the tenant to abide by the conditions mentioned in the contract. The general practice in Delhi is to make a rent agreement for up to 11 months. 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 prefer to enter into a leave and license agreement (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.
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Rent agreement in Delhi: Is registration must?
The Delhi Rent Control Act, 1995, mandates a written rent agreement and its registration. If the document is not registered, the consequence under the Registration Act, 1908, becomes applicable.
Registration of rent agreements is not mandatory in Delhi if the rental period is less than 12 months. However, it is still advisable to get it registered, to create a legally enforceable right. Only a registered rent agreement can be produced as legal evidence by the parties to it, for resolving any legal dispute amicably. Since oral agreements cannot be registered, they have no legal sanction.
Rent agreement in Delhi: Process
Here are the steps to create a rent agreement in Delhi:
- The first step towards preparing a rent agreement in Delhi is to reach mutual consent. The landlord and the tenant must give their consent to the terms and conditions for the rent. This should include points such as security deposit, rent amount, maintenance charges, notice period, rent tenure, etc.
- The next step towards preparing a rent agreement in Delhi 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 facility provided by Housing.com to easily complete the steps mentioned above and create an online rent agreement which is quick and hassle-free.
Also read about the importance of revenue stamp on rent receipt
Rent agreement in Delhi: How to register?
It is the landlord’s responsibility to get the rent agreement registered under the Registration Act. To register the rent agreement, you can visit the nearest sub-registrar’s office. Registration of the rent agreement can be done within four months of the creation of the deed. 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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Rent agreement in Delhi: Documents for registration
Following are the documents needed for the registration of a rent agreement in Delhi:
- Original/copy of 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. Carry the original ID cards with you for verification.
- Two passport-sized photos of the landlord and the tenant.
- Identity proof such as a copy of a PAN card or Aadhaar card.
- Rent agreement printed on stamp paper.
Online registration of rent agreement in Delhi
Online registration is now fully operational in Delhi. The online rent agreement process is highly reliable, transparent and cost effective. It can save 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.
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 entire process is contact-less, hassle-free, convenient and cost-effective. Currently, Housing.com provides the facility to create online rent agreements in 250+ cities of India.
Rent agreement registration fee in Delhi
The fee for rent agreement registration in Delhi includes stamp duty, registration fee, the legal advisory fee, etc. In Delhi, you have to get the e-stamped agreement paper and print the rental conditions on it. The stamp duty applicable on the rent agreement is as mentioned below:
- For 11 months: 2% of 12-month average rent
- For less than a five-year rental period: 2% of 12-month average rent
- For five to less than 10-year rental period: 3% of 12-month average rent
- For 10 to 20-year rental period: 6% of 12-month average rent
Apart from stamp duty, Rs 1,100 is payable towards registration charges.
If you hire a legal expert to draft a rent agreement and get the agreement registered, it may cost you extra.
Know about: Rent agreement online
Points to keep in mind when making a rent agreement
Rent agreements are crucial documents for 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 by up to 10% every three years and also in conformation to the Delhi Rent Control Act.
- The tenant is entitled to receive a rent receipt for the payment of rent.
- The notice period by both, the landlord and the renter, should be mentioned in the agreement.
- The 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 Delhi you should clearly cover critical points such as provision for parking, provisions related to pets, permission for structural changes, etc.
See also: DJB bill: How to pay water bills online in Delhi?
FAQs
Who pays for the rent agreement?
The rent agreement cost can be borne by the landlord, or the tenant or shared between both.
Who keeps the original rent agreement?
The landlord has to keep the original rent agreement document.
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.
