Here is the format of rent agreement used in India. In this fast-paced world, where mutual trust is dwindling, you must prepare a property-related agreement employing a legally bound contract in an agreeable format. A rental agreement is no exception.
The agreement identifies the parties, description of the property (address, type, and size), monthly rent, security deposit, the purpose for which property can be used (residential or commercial), and duration of the agreement, etc.
Whether you’re an owner holding property or a tenant looking to rent a property, the notarized rental agreement must be made under the guidance of a “public officer” who verifies the document. This agreement has to be followed by both landlord and tenant.
The terms and conditions of the contract or agreement can be changed according to the understanding between the tenant and the landlord. Unless registered, this notarized agreement is not legally binding.
Therefore, to register the same, the tenant needs to pay stamp duty and registration charges on the contract. In India, 11 month lease period is fancied by most landlords while entering into a property as a guard against the rental laws in India.
For a contract of more than five years but less than ten years, it is 3% of the value of the average annual rent of a year. Moreover, the tenure of the contract or lease can be renewed if the owner of the property wishes top.
Process of rent agreement format?
- Draft a rent agreement according to the terms and conditions.
- Print on stamp paper.
- Attest the agreement before two witnesses.
- Register at the sub-registrar office.
When To Use Rent Agreement?
You can design a rental agreement by using safe and error-free rent agreement format with terms and conditions in the following scenarios:
- While renting a house, apartment, room, or commercial space.
- To have a legal addressed agreement with your landlord or tenant.
- To document & execute general and specific clauses.
- To register the agreement with local officials such as polices or judges.
- Failure to have a rent agreement endorsed by both the parties will lead to legal impotence in the case of any dispute.
- All parties should have a binding rental agreement that accounts for everyday situations and provides remedies to ensure coverage.
What Does A Valid Rent Agreement Should Cover?
- Rent, Deposit and penalty amount
- Maintenance, Electricity and Water Charges
- Damages, Repairs, and Modifications
- Tenant’s Obligations
- Owner’s Duties
- Lease Extensions or Terminations
- Miscellaneous Condition of Limitations
How To Get Your Agreement Enforceable And Legally Valid?
Match the checklist below for an error-free agreement before printing the document:
- The document is needed to be printed on Stamp Paper of prescribed stamp duty value.
- Ensure the landowner and the tenant signs at the bottom of each page at the end.
- Provide name, address, and signature of the witnesses along with the tenant.
- Embody details of ownership, inventory, and registry of the property as an attachment.
Formula to assess the stamp duty payable on a rental lease
Monthly rent x no. of months = A
Advance rent for the period or any non-refundable deposit = B
10% x Refundable deposit x no. of years = C
Total cost of stamp duty = D = A+B+C
Stamp duty = E = 0.25% x D
For example, if you enter into a rental license agreement for 12 months, with a monthly rent of Rs 15,000 and a refundable deposit of Rs three lakhs, you will have to pay a stamp duty of Rs 537.5 (being 0.25% on rent of Rs one lakh and eighty thousand and interest of Rs fifty thousand for one year).
How to register a rent agreement online in Maharashtra?
- Register and log in to your profile.
- Go to the e-filing website.
- Select “District of Property” as ‘Pune.’
- Click “New” to create your profile registered under the e-filing website’s database.
- Post successful creation of the profile, the site redirects you to “Property Details Page.”
- Enter details of property like Taluka, Village, Property type, Unit Area, Address, and other information as available on the e-filing website’s “Property Detail Page.”
- Save the furnished details.
- Upon successful completion, a token number will be generated. Applicants need to use this token number as your user ID for the next login.
In the next step, you need to enter ‘party details.’ Save the details added.
- Fill other party details by clicking “Add: Party Details” and save the changes.
- Click “Next: Rent & Other Terms.”