Rent Agreement

Rent Agreement

on Stamp Paper is provided by Virtual Office in Delhi

Rent Agreement by Virtual Office
Rent Agreement by Virtual Office

WHAT THINGS SHOULD BE KNOW BEFORE RENTING THE PROPERTY?

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

  • Check the Details of the Owner who is claiming as an 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 Terms and Conditions carefully with the Owner before entering into an Agreement.
  • In Case if any token money paid then ask for the Receipt from the 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 to 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.

WHAT ARE THE STEPS INCLUDING FOR DRAFTING THE RENT AGREEMENT?

The Steps include are-

Draft the Agreement – Both the Parties need 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 the page accordingly.

Sign the Rent Agreement – After that, the Next Step is for Both Parties have to Sign on every page of the 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 then 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.

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IS IT MANDATORY TO INCLUDE THE DETAILS OF ALL THE TENANTS WHILE DRAFTING THE RENT AGREEMENT?

Yes, it is 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 the Agreement will not be applicable to all the Tenants which can cause problems in the future.

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WHICH ONE IS MORE SECURE, NOTARIZED RENT AGREEMENT OR REGISTERED RENT AGREEMENT?

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

  • If the Agreement is making for 11 months then 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.

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WHAT ARE THE IMPORTANT TERMS WHICH NEEDS TO BE CONSIDER WHILE DRAFTING RENT AGREEMENT?

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There are few important terms that need to be considered 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 – The 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 does 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 the Agreement. This act will make each tenant strictly follow the terms and conditions set for the rented property.
  • Limit on Occupancy – There should be a limit set on occupancy that the residence will be used only by the tenants who are involved in the agreement and by their children. This will provide surety to the owner about the usage of their property and will prevent unwanted occupants from his property.
  • Duration Of Tenancy – It should be clearly stated in the Agreement that what will be the duration of the Tenancy.
  • Repairs and Maintenance – It is always recommended to clearly set 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 the Agreement that the water and electricity bill should be paid by the tenant and if ask the tenant needs to provide the receipt for the same.
  • Rent and Other Security Deposit – The Last but most important term for the Agreement is clearly stating the amount of Rent needs to pay every month and also a penalty if the tenant fails to deposit the Rent on Time and also about the mode of accepting the rent/payment.

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WHAT CONSEQUENCES CAN BE FACED IF WE WILL NOT MAKE OUR RENT AGREEMENT REGISTERED?

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

HOW TO REGISTER THE RENT AGREEMENT?

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

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


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.

Let us Assume that the Monthly Rent of the Property is Rs. 10,000/- then 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 1,20,000= Rs. 2,400)

OR

If there is Security also with Monthly Rent then 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.

If anyone is having any questions about Stamp Paper, you can send your query on our Email at the end of this page.

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The Stamp Paper is to be purchased by the Tenant or it can also be purchased by the owner if you pay the cost.  The owner of the premises will sign on the Stamp Paper. The following Rent Agreement is printed on a separate sheet of paper. This page will also be signed by the owner of the premises.

After the Stamp Paper and this page of rent agreement reach you, you are required to return it back after your signature has been affixed on it.

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