Rent Agreement Copy

Rental Agreement for 11 months is made to avoid the Strict Rental Law which apply for the Lease up to 12 months, that is why also the One Month in the count of 12 months is consider as the month of Notice Period Serving by the Owner.

Now, there is no Stamp Paper system left in Delhi/Karnataka. The Prevailing system of Stamp paper has been replaced by the Government in a year 2011 (in Delhi) and in a year 2007 (in Karnataka). Government has appointed Stock Holding Corporation India Limited (www.shcilestamp.com) as their Central Record Keeping Agency and they are the Only CRA with Government for e-stamping. So, Rental Agreement for Delhi and Karnataka should be made only on e-stamp paper.

Image of e-Stamp Paper:

The prescribed Stamp Duty for Rent Agreement in Delhi is Rs. 50/-, though after introducing  e-stamp paper no fixed denomination is left. You can make Rent Agreement on e-Stamp Paper of any amount, still it is always recommended to make Rent Agreement on a Stamp paper of Rs. 50/- or higher to avoid any misshapen in terms of Legal Crises Later.

It is always recommended to pay the prescribed Stamp Duty to avoid any Legal Crises. For each article there is a different stamp duty set by the Government which varies from State to State. For example- in Delhi the Stamp Duty for Rent Agreement is Rs. 50/- while in Bangalore the Stamp Duty for Rent Agreement is Rs. 20/-.

For example – if you have make the Rent Agreement on Rs. 10/- e-Stamp paper and you approaches to the Court due to any Legal Crises arise then Court can Charge the fine up to 10 times of the stamp duty amount to be paid.

So, it is always recommended to make the Rent Agreement on e-Stamp paper of Rs. 50/-.

Rs. 50 is the prescribed Stamp Duty for the Delhi State and commonly used as well.

In Delhi, the rent and lease are controlled by the Delhi Control Rent Act, 1958. These are the few things which should be know before Renting the Property-

• Check the Details of the Owner who is claiming as a Owner of the Property. Ask for the Ownership Proof and preserve one Photocopy for the same.
• Ask for NOC for Mobile, Gas Connection.
• Tenant Verification at the Local Police Station also needs to be done by the Landlord and it is mandatory as well.
• Discuss all the Term and Conditions carefully with the Owner before entering into an Agreement.
• In Case if any token money paid then ask for the Receipt from Landlord for the same.
• Mention the Name of all the Mature Tenants while drafting the Rent Agreement, so that the Terms and Conditions of Rent Agreement will be applicable on all the Tenants.
• Security Deposit amount in Delhi is to collect of 1-3 months of the rent and this will be refunded by the Owner at the time of vacating the premises.

The Steps include are-

Draft the Agreement – Both the Parties needs to decide the terms and conditions mutually regarding rent, security deposit and other terms included. Decide and draft the Rent Agreement accordingly.

Purchase the e-Stamp paper – Purchase the e-stamp paper of the prescribed value and print the drafted agreement on e-stamp paper. Start printing the Rent Agreement below the line on the e-stamp paper and mention continued to page 2 and attach other pages of Rent Agreement giving the Page Numbers. While giving the Page Number consider the Stamp Paper Page as Page Number 1 and mark other numbers of page accordingly.

Sign the Rent Agreement – After that, the Next Step is Both the Parties have to Sign on every page of Rent Agreement declaring that they are accepting all the Terms and Conditions and also provide two Witnesses.

Make it Attest from Notary Public OR Make it Registered – Now in this matter, It’s the choice of both the parties that mutually whether they want the Agreement attested from Notary Public or want to register it in Sub-Registrar Office. If you are going to make the Rent Agreement for more than 1 year than it’s recommended to make it registered in Sub-Registrar Office with stamp duty as the validity for Notary Attestation in case of Agreement is for 1 year.

Yes, its highly recommendable to include the Details of all the Mature Tenants. If you will not include the details of all the Tenants then the terms and conditions mentioned in Agreement will not be applicable to all the Tenants which can cause problem in future.

Registered Rent Agreement is more secure, however the case depends on these two points-

• If the Agreement is making for 11 months than notarizing it with Notary Public is sufficient and Valid.
• If the Agreement is making for above 11 months then it is recommended to make it register as the validity for Notary Attestation is for 1 year in case of Rent Agreement.

There are few important terms which needs to be consider mutually while drafting the Rental Agreement-

• Allowance of Pets – Make a clause whether the pets will be allowed in Rented Property Or not.

 

• Lock in Period – Locking period prescribes the time period within which any of the parties cannot terminate the contract before the sending of the lock in period, if the party do so then he has to pay the rent for the remaining lock in period. So, it is always recommended to modify this term accordingly and wisely.

 

• Names of all Tenants – The Name of all the adult tenants should be included while drafting the Rental Agreement along with their signature on Agreement.This act will make each tenant to strictly follow the terms and condition set for the rented property.

 

• Limit on Occupancy – There should be a limit set on occupancy that the residence will be use only by the tenants who are involved into the agreement and by their children. This will provide the surety to the owner about the usage of their property and will prevent the unwanted occupants from his property.

 

• Duration Of Tenancy – It should be clearly stated in Agreement that what will be the duration of the Tenancy.

 

• Repairs and Maintenance – It is always recommended to clearly set that what will be the Tenant’s role for the repairs and maintenance and what will be the Landlord’s role and also there should be a term of allowance of owner anytime for Maintenance or for any major repair within the rented property.

 

• Water and Electricity Consumption Bill – It should be clearly stated in Agreement that the water and electricity bill should be paid by the tenant and if ask tenant needs to provide the receipt for the same.

 

• Rent and Other Security Deposit – The Last but most important term for Agreement is that clearly stating the amount of Rent needs to pay every month and also penalty if the tenant fails to deposit the Rent on Time and also about the mode of accepting the rent/payment.

 If the Concerned Rent Agreement is for more than 11 months, than the unregistered rent agreement cannot be used as a evidence in Court. It cannot be used as a proof or claim of any terms and conditions provided. So, it is always recommended to make the Rent Agreement registered to be on safer side to avoid any kind of loss.

HERE ARE THE STEPS TO FOLLOW FOR REGISTERING THE RENT AGREEMENT:

STEP 1: DRAFT THE RENTAL AGREEMENT STATING THE DETAILS ABOUT THE RENTED PROPERTY.

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STEP 2: PURCHASE THE STAMP PAPER ACCORDINGLY TO THE RENT. TO KNOW HOW TO CALCULATE THE STAMP DUTY HAVE A LOOK AT THIS EXAMPLE: WE ARE PROVIDING THE EXAMPLE FOR THE RENT AGREEMENT OF 11 MONTHS.

Lets Assume that the Monthly Rent of the Property is Rs. 10,000/- than Multiply it with 12

(10,000 x  12= Rs. 1,20,000)

Now on the amount 1,20,000 there will be the Stamp Duty of 2%, Calculate 2% of 1,20,000

(2% of 1,20,2000= Rs. 2,400)

OR

If there is Security also with Monthly Rent than on Stamp Duty add Rs. 100/- and the Total will be:

(2,400 + 100= Rs. 2,500)

Now, Purchase the Stamp Paper of Value Rs. 2,500/- for the Rent Agreement up to 11 months.

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STEP 3: NOW ANOTHER STEP IS TAKE THE APPOINTMENT FROM THE E-SUB REGISTRAR BY VISITING TO THEIR ONLINE PORTAL- HTTP://DISTRICTS.DELHI.GOV.IN/AMS/DEFAULT.ASPX

Select your District, Sub- Registrar and Area by proceeding to the above Link, Check the Documents Required and gather the Documents accordingly if the Mentioned Documents are Ready than Click on Yes and in Next Step Enter the e- Stamp Number of your Purchased Stamp paper and Verify it, After the Verification gets Successful you will get the Appointment.

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STEP 4: PURCHASE THE E-STAMP PAPER TO PAY THE FEES OF SUB- REGISTRAR I.E 1% OF TOTAL RENT CALCULATED FOR 11 MONTHS.

(1% of 1,20,000= 1,200)

+

Additional Pasting Fees= Rs. 100

Total= Rs. 1300/-

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STEP 5: VISIT TO THE SUB- REGISTRAR OFFICE WITH ALL THE RELEVANT DOCUMENTS AND E- REGISTRATION PAPER OF AMOUNTED RS. 1,300/-

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We eDrafter also provides the Services for Registration of Documents in which we will handle all these process on your behalf to give you full comfort, To Know more kindly proceed to our this section- Registration of Documents.

•  If the Lease is upto 5 years then the Stamp Duty cost is 2% of the total annual rent and if there is also security deposited then additional Rs. 100/-.
•  If the Lease is from 5-9 years then the Stamp Duty cost is 3% of the total annual rent and if there is also security deposited then additional Rs. 100/-.
•  If the Lease is of above 9 years then the Stamp Duty cost is double of 3%  i.e 6% of the total annual rent and if there is also security deposited then additional Rs. 100/-.

Minimum Registration Fees of Sub-Registrar is Rs. 1,100/- (Rs. 1,000/- and additional pasting fees of Rs. 100/- )also needs to be paid.

Documents required for the Registration process are:-

• One Original Identity Proof of Owner and Tenant.

• Two Passport Size Photograph of each-Owner and Tenant.

• Two Witnesses with their Original Identity Proof.

It depends upon the Appointment as well as on the Status of Application. Usually the Registration process take 2-4 Working Days.