What is Rent Agreement? Why Rent Agreements are made for 11 months?
A lease agreement, as we know, is a contract between two parties, For example (a lessee and the lessor here, the lessee being the one who is renting/leasing the property in South Delhi, and the lessor, the owner of property in South Delhi), wherein, specific conditions are mentioned about renting or leasing the property. It is a legal agreement which gives the lessee the right to occupy the property for the tenure mentioned on it, but does not give them the right to own it.
The leasing agreement also carries specifications, instructions and conditions the lessor has laid down and accepted by both parties, during the tenure of their occupancy in the property.
How to make rental agreement online?
- Draft a Rent Agreement with customized terms like name & address of both parties, monthly rental, security deposit, agreement period, etc.
- Get a notary stamp paper of Rs. 100/- if the agreement is for 11 months and a stamp paper as per your monthly rent if it is for more than 11 months.
- Then, the rent agreement should be read thoroughly by both parties.
- The agreement should be mutually agreed upon and signed by the owner and tenant in front of a witness each.
- If the agreement is for 11 months, it can be signed at home or office of property dealer with a sign and stamp by a notary officer. There is no need to register it with a sub-registrar.
- But if the agreement is for more than 11 months say 2 years, it needs to be signed at the office of a sub-registrar of where the concerned property is situated.
Rent Agreement FAQs
Why rent agreement is of 11 months?
So that the stamp duty and other charges can be avoided. According to the Registration Act, 1908, lease agreement registration is mandatory if the leasing period is 12 months or more than that. If a rent agreement is registered then it is also mandatory to pay registration fee and stamp duty.
How much rent agreement cost?
The rent agreement notary can be done on 100 Rs stamp paper as well as on 500 rupees stamp paper, but the stamp paper is; 2% of the total average annual rent plus Rs 100 (for the security deposit paid) if the least stretches up to 4 year time period; 5% of the value of the average annual rent for a lease of 5-10 years; 5% of double the value of average annual rent for lease of 10-20 years period.
How to make rental agreement online?
- Draft the agreement.
- Print the agreement on Stamp paper of due value.
- The owner and the tenant should sign the agreement in the presence of two witnesses.
- Register the agreement at the sub-Registrar office paying the appropriate registration fees.
What are the Documents required for registration?
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.
What is the difference between lease and rent?
A lease agreement or a rental agreement is a vital legal document that should be completed prior to a landlord renting property to a tenant. While both agreements are similar in nature, they are not the same and it is important to understand the differences.
Lease Agreement vs Rent Agreement
The key difference between lease and rent is their duration.
The length of the lease and the amount of monthly rent are documented and cannot be changed. This ensures that the landlord cannot arbitrarily just raise the rent and the tenant cannot just leave the property whenever they want without repercussion.
The lease agreement is effective for the specific time stated in the agreement and is then considered ended. If the tenants wish to remain in the property, both parties must enter into a new lease agreement.
Rent Agreement
A rental agreement differs from a lease agreement in that it is not a long-term contract and usually occurs on a month-to-month basis. This month-to-month lease agreement expires
Sub-registrar office respective to your district and register the deed paying the registration fee through demand draft. You can locate the address below-
Interested in leasing your property in South Delhi, click here!
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Disclaimer: This above write-up is a collections of from online and offline information sources put together to make a sequence of events in no intended order, by the writer for purely for informative purposes. Hence the writer makes no claims and is purely reproducing events with intent of data-sharing only thus cannot be deemed legal.
