New Okhla Industrial Development Area (Noida) is one of the well-planned and fastest-growing cities in the state of Uttar Pradesh. It is also a green city, with a large number of IT companies, high-rise buildings, flyovers, wide expressways and proximity to Delhi, making Noida a great region for residents. In comparison to Delhi, the realty market in Noida is less expensive, across segments. You can get properties that range from affordable to ultra-luxury.
If you are looking for a residential property on rent in Noida, selecting an attractive home might not be enough. You also need to be completely aware of the rent agreement process. Often, tenancy disputes occur due to a lack of knowledge about the rent agreement process. So, read on to learn all about making and registering a rent agreement in Noida.
What is a rent agreement?
A rent agreement lays down the terms and conditions agreed upon by the tenant and the landlord. The rent agreement process may change, depending on the rules applicable in a particular city or state. So, it becomes crucial to understand the principles associated with the rent agreement, as per the city and state where you propose to rent a property.
What does a rent agreement include?
A rental agreement must include the following key elements:
- Rent and security deposit: Details regarding the monthly rent and the amount of the security deposit.
- Maintenance, utility, and water charges: Information about who is responsible for paying maintenance fees, electricity, and water bills.
- Damage, repairs, and modifications: Terms related to property damage, responsibilities for repairs, and guidelines on any alterations made to the property.
- Tenant’s responsibilities: A clear outline of the tenant’s duties and obligations.
- Landlord’s responsibilities: The landlord’s responsibilities in maintaining the property.
- Lease renewal or termination: Conditions for extending or ending the lease agreement.
- Special clauses: Any specific conditions or clauses that may not be universally applicable.
What is the process of making a rent agreement?
A rent agreement can be created both, offline and online. Here are the key steps to make a rent agreement in Noida:
- The initial step towards preparing a rent agreement, is to get ‘mutual consent’. Both parties should agree to the terms and conditions.
- The terms and conditions should cover points like security deposits, rent amount, maintenance charges, notice period, rent tenure, etc.
- Print the mutually agreed terms on a stamp paper of due value and read all the points once more, to avoid any discrepancy.
- If all the points are correct and agreed by both the parties, they should sign the agreement in the presence of a minimum of two witnesses.
- Get the deed registered at the local sub-registrar’s office.
Is rent agreement mandatory in Noida?
In line with the Registration Act, 1908, it is obligatory to register the lease agreement when the tenure of the contract is for more than 12 months. The general practice, in Noida, is to make a rent agreement for up to 11 months, to avoid registration. After the lapse of the 11-month term, both parties may decide to renew the agreement.
Is it mandatory to register a rent agreement?
Registration of the rent agreement is not mandatory in Noida, if the rental agreement is for 11 months or lesser tenure. However, it is still prudent to have it registered, to create a legally enforceable right. In a legal dispute, the registered rent agreement can be produced before the court as a legal document.
It would be important to note here that according to Uttar Pradesh Regulation of Urban Premises Tenancy (Second) Ordinance (UPRUPT Ordinance), 2021, the rent agreement should be disclosed to the rent authority within two months of beginning of the lease. Under the same law, it would be mandatory to register all rent agreements. If you want to register the agreement, you have to get it in writing, because oral agreements are not permitted for registration.
See also: Laws related to registration of property transactions in India
How to register a rent agreement in Noida?
It is the landlord’s responsibility to get the rent agreement registered as per the Registration Act. Lease agreements can be registered at the local sub-registrar’s office. During the registration process, the landlord and the tenant need to visit the sub-registrar office, along with two witnesses. If either, the owner or the tenant, or both are unable to be present, they can send their power of attorney-holders for signing the agreement at the time of registration.
Documents required for registration of rent agreement in Noida
Here is the list of documents required for rent agreement registration in Noida:
- Ownership proof: You can use the original/copy of the sale/purchase deed.
- Tax receipt: Tax receipt or Index II is required, at the time of registration.
- Address proof of the landlord and tenant: For example, copy of passport, Aadhaar, driving licence, etc.
- Photographs: Two passport-size photos of the landlord and tenant, each.
- Identity proof: Copy of PAN card or Aadhaar card.
- Agreement on paper: Rent agreement printed on stamp paper.
Benefits of online registration of rent agreement in Noida
Offline rent agreement registration is usually a time-consuming process. People living in Noida can now easily access the benefit of online registration on various platforms. The whole process of online registration is quite transparent and easy to understand. It can save both, time and money. There are some well-known companies offering hassle-free online rent agreement services to their customers. You can use their platforms, for services from finding a home on a rent to getting the rent agreement registered.
What is the cost of rent agreement registration in Noida?
Stamp duty rates for rent agreements vary depending on the lease duration:
- Less than 1 year: 2% of the total annual rent.
- 1 to 5 years: 2% of three times the average annual rent.
- 6 to 10 years: 2% of four times the average annual rent.
- 11 to 20 years: 2% of five times the average annual rent.
- More than 20 years: 2% of six times the average annual rent.
These charges are applicable as per the prevailing registration laws.
Key considerations for drafting a rent agreement in Noida
When preparing a rent agreement in Noida, ensure the following aspects are included to avoid future disputes:
- Rent escalation clause: Landlords can include a clause for annual rent hikes, with the Uttar Pradesh Urban Premises Tenancy (UPRUPT) Ordinance, 2021, capping the increase at 5%.
- Rent receipts: Tenants have the right to receive rent receipts as proof of payment.
- Notice period: The agreement should clearly mention the notice period for both the landlord and the tenant.
- Fittings and fixtures: List all fittings and fixtures to avoid conflicts over property condition.
- Additional provisions: Consider including clauses related to parking, pet policies, structural modifications, and the preferred mode of rent payment (cheque, online transfer, etc.).
- Accuracy in wording: Ensure the agreement is error-free, as incorrect wording can lead to legal disputes that may be time-consuming and costly.
Check out properties for rent in Noida
Housing.com POV
Preparing a rent agreement in Noida is a crucial step in ensuring a smooth and clear relationship between tenants and landlords. By understanding the essential elements that need to be included, the process of drafting and registering the agreement, and the associated costs, you can effectively navigate the rental process. Whether opting for traditional or online methods, it’s vital to cover all necessary details to prevent potential disputes and legal issues. Online platforms, like Housing.com, offer convenient and efficient solutions for creating and registering rent agreements, making the process more accessible and hassle-free. By following these guidelines and paying attention to all the key aspects of the agreement, both tenants and landlords can ensure a more transparent and mutually beneficial rental arrangement.
FAQs
What is a security deposit?
Security deposit is the money collected by the landlord from the tenant, before allowing occupancy of the property. Security deposit is meant to allow protection to the landlord against damages caused to the property and against non-payment of rent by the tenant. When leaving the property, the tenant is entitled to get the security deposit back from the landlord.
Is it necessary to register a rent agreement in Noida?
In Noida, registering a rent agreement is required if the lease term exceeds 12 months, according to the Registration Act, 1908. For agreements under 12 months, registration isn't mandatory but is recommended to ensure legal enforceability and aid in resolving potential disputes.
What are the key documents required for registering a rent agreement in Noida?
To register a rent agreement in Noida, you need documents such as proof of property ownership, a tax receipt or Index II, address proof for both landlord and tenant, passport-size photographs, and identity proof. Additionally, the agreement must be printed on stamp paper.
How can I create a rent agreement online in Noida?
Creating a rent agreement online in Noida involves using platforms like Housing.com. You provide lease details, generate the agreement on stamp paper, e-sign it, and complete the registration process online. This approach is convenient and avoids the need for physical visits to the sub-registrar’s office.
What is the cost of registering a rent agreement in Noida?
The cost of registering a rent agreement in Noida includes stamp duty and registration fees. For agreements less than 12 months, stamp duty is 2% of the total annual rent. For longer agreements, it's 2% of the total rent for the first three years. Additional legal advisory fees may apply.
