Rent agreement is a legal document that binds tenant as well as the owner of the property in a legal contract. It contains legal terms and conditions, rent details and other terms such as deposit amount. These contracts are legally binding and can be used in court as litigation during legal matters.
Rent Agreement Delhi is mandatory to register the leave and license agreement for a rental period of more than 11 months.
Complete Steps for Rent Agreement Delhi
STEP1. Draft the Rent Agreement Delhi, and include the following details:
- Name and permanent address of owner of the Property
- Name and permanent address of tenant
- Address of property
- Tenure
- Financial factors like security deposit, Monthly Maintenance, etc.
- Notice period before leaving Property
STEP2. After verification from both parties, print this agreement on stamp paper. Procure an E-stamp of stamp duty value and then print the draft agreement. E- stamps are regulated by Stock Holding Corporation of India Ltd.
STEP 3. To proceed with the payment, visit the Sub-Register’s office(SRO) under whose jurisdiction the property comes. Pay the registration charges and sign the documents in the presence of the witness.
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Documents Required for Rent Agreement Delhi
Be careful with your documents and carry these documents with you to the SRO:-
- Ownership details of property ( property document, property tax receipt)
- Passport size photographs of owner and tenant
- If it is a company name, get an authorized letter
- Address proof of property
- Address proof and photo ID proof of tenant
- Address proof and photo ID proof of owner
- Demand draft of registration document
- Two witnesses, along with their ID proofs
These are some must required documents which are required for Rent Agreement Delhi and it would be better if you not miss it.
Stamp Duty on Rent Agreement in Delhi
| Rental Period | Stamp Duty |
| Less Than 1 Year (11 Months) | RS. 50 |
| More Than 1 Year (Less than 5 years) | 2% of the average annual rent |
| More Than 5 Years (Less than 10 Years) | 5% of the average annual rent |
It is simply the duty paid to the government when a transaction or agreement is created. It is completely based on the type of transaction made. It is paid to the government by purchasing the type of stamp paper which is due.
Two types of stamp duty papers are there:
- E stamping
- Normal Stamping
For e- stamping, purchases and forms have to filled online while normal stamping requires one to buy the stamp paper from the offline vendors.
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Types of Rental Agreements Delhi
- 11 month rental – In Delhi, the rentals are for 11 months. Agreements are later revised for another tenure if the relation is to continue. Along with rent charges like the electricity bill, water bill and the maintenance charges are to be paid diligently without any kind of dispute.
- Long term lease – The agreement is drawn for long years, there is no monthly payout but the tenant has to pay a long sum at the end of the tenure. There is no interest paid in this agreement. Other charges are covered by the tenants.
- Commercial rental lease – The registration rental agreement process and format are similar as that of a residential property. Stamp duty and other factors are also similar for a commercial property.
What happens if a rental agreement in Delhi is not registered?
If this happens, then the rental agreement cannot be used in court disputes regarding rental issues experienced by the parties. To avoid any such disputes from happening in future, both the parties should register the rental agreement and sign it with the sub-registrar office.
How to Register a Rent Agreement Delhi
In the end, registering a rental agreement in Delhi is non-negotiable for both tenants and owners alike. It ensures that their rights and duties are listed and known.
Both the parties ensure a peaceful and respectful understanding. Consult a legal aid or expert for understanding the legalities. This ensures respectful handling and clears any kind of misunderstanding. It also ensures that any disputes can be cleared easily during the tenancy.
I would recommend hiring an expert property lawyer for a better understanding the legal constructs of the process. All the best for your contracts.
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Conclusion
A well-drafted rent agreement is actually what one needs in hand in Delhi while renting, as it clearly outlines the duties and expectations by both landlords and tenants to avoid possible misunderstanding and disputes that may arise. A comprehensive Rent Agreement Delhi involves every detail regarding the amount of rent, the schedule for payment, deposition of security, and maintenance responsibilities so that both parties are aware of these regards.
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