Is Rent Agreement Mandatory In India
In India, it is not mandatory to certify an overly notarized lease. As long as it is printed on stamped paper and signed by both parties and by two witnesses, it is considered binding. However, if you want to authenticate it by a notary, you can do so. The role of the notary is to verify everything in the document and certify the document as soon as it turns out that the document and the filing are authentic. If the agreement contains a security deposit, add Rs100 and Rs1.100 as a registration fee, bringing the total cost to Rs 6,240. The fees of lawyers or other intermediaries for all documents are not taken into account. Housing.com has launched a fully digital, contactless service to create leases. If you want to complete the formalities quickly and without any problems, you just have to fill out the details, create the online rental contract, sign the contract digitally and get an electronic stamp in seconds. To prepare a lease, all clauses must be thoroughly reviewed. To enter into a valid and strong lease, one can even refer to the standard leases available online.
As a step-by-step guide help form an agreement to protect the interests of both parties. The agreement thus developed will avoid misunderstandings or differences of opinion in the future. The lessor must provide a copy of the tenancy agreement to each tenant who signs it. The tenant can even request a free replacement copy from the landlord. Certification usually involves verifying and assigning a seal of authenticity for a document. This is done by a notary appointed under the Notaries Act. Registration on the other side when registering the document with a local sub-registrar`s office. Procedures for both are governed by different laws and can therefore be considered as two totally different procedures. To register the contract, you will need some basic documents from the tenant, landlord and witnesses, such as a passport-sized photo.
B, a photocopy of proof of identity (for example. B PAN card) and the electricity bill or real estate document such as index II or receipt of taxes from the property that is rented. Most leases are signed for 11 months so they can avoid stamp duty and other fees. Under the Registration Act of 1908, registration of a lease is mandatory if the tenancy period is more than 12 months. If an agreement is registered, stamp duty and registration tax must be paid. For example, in Delhi, for a lease of up to five years, stamp paper costs 2% of the total annual rent of one year. Add a flat fee of Rs100 if a security deposit is part of the agreement. For a lease of more than 5 years but less than 10 years, it represents 3% of the value of the average annual rent for a year. For 10 years and more, but less than 20 years, it is 6% of the value of the average annual rent of a year. The stamp paper may be in the name of the tenant or landlord. In addition, a flat-rate registration fee of EUR 1,100 million must be paid by the draft application (DD). These are just the basic things expected in a lease.
However, if the parties concerned have more clauses, they are free to add clauses of their choice as long as both parties agree. To rent a property, the parties sign a lease agreement that describes the terms of the contract.