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Is it mandatory to register a rental agreement?

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Rent Agreement
1 2021-05-12T10:34:36+00:00
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In the last two decades people have become familiar with the rent agreement concept. Many people migrate from small towns to big cities for work, livelihood and studies who prefer to stay at a rental property.  Because of the increase in demand many new investors are coming into the market to lease out their property on rent. But before the final call of rent settlement, both parties should understand the importance of online rent agreement registration and how to do online rent agreement registration.   Is rent agreement registration mandatory? According to Registration Act 1908, registration of rent agreement is compulsory. If you are using a notarized rent agreement then the registration is not required. But in case of a registered  rent agreement the document is only valid after paying the stamp duty and has been registered  at the registrar office. Here are the steps for online rent agreement registration on NoBroker 
  • Click on the rent agreement register option and add your contact number.
  • Then you will receive an OTP, fill the OTP on the columns.
  • You can select assistance guidance if you want.
  • Mention the property details
  • Then provide the Landlord details
  • Once you have mentioned the landlord details, provide the tenant details
  • Now mention contract details
  • At last fill the summary of the rent agreement.
  • Once you submit the details, NoBroker will get the rent agreement registered or notarized (as needed) and deliver the hard copy at your doorstep and send an online copy on your email address.
Hope you have got the idea of online rent agreement registration and the answer to the query ‘ Is it mandatory to register a rental agreement’ is YES!
2 2022-05-26T20:18:56+00:00
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Hey, I think all of us have had fears about getting a landlord that doesn’t cooperate with us. As tenants, we tend to think that landlords will charge exorbitant prices when we move in and not return the security deposit when it is time to move out. To make sure, the interests of both the landlord and the tenants are expressed clearly, you need a registered rent agreement.  Whether a rent agreement needs to be registered? According to the Delhi Rent Control Act, 1995, it is mandatory to have the written rental agreement registered by the authority. If the agreement is not registered then the consequences mentioned in the Registration Act, 1908 become applicable. Though, if the rental period is less than twelve months. It is not necessary to get your agreement registered. If you want legally valid rent agreement to be delivered to your doorstep.Check out NoBroker Rent Agreement Services To answer your question ‘is rental agreement mandatory?’. It is 100% legal to stay on a property as a tenant without drafting a lease agreement. In the absence of an agreement, it is assumed that the owner is receiving monthly rent via implied consent of both the parties involved.  If you are still confused about ‘is rent agreement mandatory?’. Read the paragraph given below. I think registering a rent agreement is beneficial for everyone because details about the ownership of the property, rent amount, lease period, and rights of the tenant are mentioned there.  Usually, rental agreements are made for a period of 11 months. Agreements for less than a year don’t require registration by the parties involved. It is considered to be admissible in court as well. A registered agreement is valid for a period of three years. You will have to get a renewal post validity.  This is all from my end on the registered rent agreement. No time looking for suitable tenants ? Leave it to the experts, check out NoBroker Owner Plans. Read more : Does Signing a house rent agreement online require enabling of camera (whether picture will be taken)?    Is it possible for NRI to do rent agreement without doing power of attorney in Pune? ?    What is notary rent agreement?    
2 2022-08-12T10:12:37+00:00
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I have come across many instances where people who are renting out their properties ask is rent agreement mandatory or is it mandatory to get it registered. Well, let me tell you that there are certain things that you should consider.  As per Section 17 of the Registration Act, 1908, it is mandatory to register the rental agreements if the tenure exceeds 12 months.  Create a legally valid rental agreement through experts.
  • However, generally it is seen that an agreement is notarised if the tenure is of 11 months, that is signed by a Public Notary. Majorly lawyers and advocates are the public notaries in India.
  • Executing a notarized agreement is a simpler process than a registered one as it can be done by just visiting the lawyer’s office.
  • It also does not require any stamp duty and registration fees. In this case, for your question: does rent agreement need to be registered, the answer would be no, not necessarily.
  • Only a fee for notary is charged by the lawyer that ranges from Rs 200- Rs 500 as per the locality. 
  • However, it is to be noted that in case of any legal proceedings, the notarized agreement cannot be admissible in the Court, as it does not validate the rental transaction.
  • Nevertheless, there is no legal requirement to notarize a rent agreement in India. 
  • But in the absence of a registered agreement, a notarized agreement is asked for by various utility connections such as cooking gas, telephone, mobile, etc. 
  • Following are the advantages of Notarised agreement:-
  • Easy to execute
  • No stamp charges applicable
  • It also acts as a witness to the agreement.
  • Minises document theft and fraud. 
  • It serves as a real and genuine document.
    • However, if the tenure exceeds 12 months, a rental agreement is registered.
    • The registration can be done online in some cities, or by visiting the sub-registrar’s office.
    • If rent agreement is not registered for a period of over 12 months, the registered rent agreement will not be admissible in the Court in case of any legal proceedings.
  • In some states, like Maharashtra, Telangana, and Andhra Pradesh, it is compulsory to register the rent agreement irrespective of the rental period.
  • One should have the following basic details in rent agreement:-
  • Tenants’ and Landlord’s name, address, contact details 
  • Address of the property which is being leased 
  • Security deposit amount, maintenance charges and monthly rent
  • Annual increase in rent, both the parties should agree to renew the contract
  • Penalty amount, if rent is paid late or disruptive behaviour
  • Lock in period
  • Term of contract
  • Grounds for contract termination
Find the attachment below for Sample of Registered Rent Agreement Read more: What is the difference between lease and rent? Difference between notarized rent agreement and registered rent agreement
1 2022-10-28T11:06:23+00:00
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As a real-estate lawyer, I have observed that in urban parts of India, the tendency of renting has reached its height. More people than ever are seeking rented housing due to the increase in opportunities for education and work. But are you aware of the registration of the rental agreement when you are looking for or living in a leased home or apartment? Is online rent agreement valid? What are the circumstances? The most crucial question is: Is it mandatory to register rent agreement? I will answer all these questions for you. Get your rent agreement drafted and delivered to your home by opting for NoBroker’s legal assistance services.

Is it necessary to register rent agreement?

It is mandatory to register for leasing and rent of immovable property throughout the year or from any term longer than one year, according to section 17 of the Registration Act of 1908. This implies that you must register your rental agreement if it lasts more than a year. Only rental agreements lasting less than a year are subject to the stamp duty fee because registration is not required. The lengths for which a landlord may lease out his property vary. The length of the rental period affects the amount of stamp duty due on the property:
Time Payable Stamp Duty
Rental agreements between 1 to 5 years 2% of thrice the average annual rent.
Rental agreements between 6 to 10 years 2% of four times the average annual rent.
Rental agreements between 11 to 20 years 2% of five times the average annual rent
Rental agreements beyond 20 years 2% of the six times the average annual rent.
DIFFERENCE BETWEEN A REGISTERED AND A NON-REGISTERED RENTAL AGREEMENT
The following are the distinctions between a Registered and Non-Registered Rental Agreement:
Registered Rental Agreement Non-Registered Rental Agreement
Rental agreements for 12 months or more. Rental agreements for a period of fewer than 12 months.
Can be admitted as proof in a court of law. Difficult to present as evidence in a court of law.
A non-registered lease agreement may be notarized by a notary. Even so, it might only be accepted as a kind of address verification and not be adequate to safeguard the parties' interests. On state-issued stamp paper bearing the INR 50 or INR 100 denomination, you can draught a non-registered rental agreement. Registration is not required in an 11-month rental agreement. Tenancy contracts are typically for 11 months, as you may have seen. To bypass the mandatory registration obligation, you might decide to sign an 11-month rental agreement.

Is it mandatory to register rent agreement?

It seems necessary to register your lease agreement. Every agreement to move immovable property that lasts longer than a year must be registered immediately under the Registration Act of India since it applies to the entire country. Additionally, in the event of any litigation, only the registered rental agreement may be used as evidence in court.
Is there any penalty for not registering the rental agreement?
Yes, you might incur a penalty of ten times the original sum in addition to the unpaid registration fees and stamp duty fees if you somehow fail to register the rental agreement with the authorities. Now you know is online rent agreement valid or not. Read More: Is Rent Agreement Mandatory for GST Registration? Can a house rent agreement be for 24 months?
2 2023-01-25T07:24:25+00:00
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To answer your query, is registration of rent agreement compulsory in Maharashtra? I’d say that no matter the length of the lease, all tenancy agreements must be in writing and registered under Section 55 of the Maharashtra Rent Control Act, 1999. One only needs the tenant's and landlord's tax receipts, as well as a few witnesses' documents, such as passport-size pictures, proofs of identification, electricity bills, and property records. Click here to get your rental agreement drafted by NoBroker  In Maharashtra, different areas have different registration costs for tenancy agreements. The registration price, for instance, is Rs. 1000 for properties that are located inside the municipal corporation region. On the other side, it is Rs 500 for rural areas. It is crucial that both the landlord and the tenant register the rental agreement since failure to do so could result in the landlord being punished with three months in jail and a Rs. 5000 fine. Unregistered rent agreement validity period: If the lease is longer than one year, registration is required. If a lease agreement is not registered with the sub-registrar, it is regarded as void and invalid. I hope this answers your query, is unregistered rent agreement valid? While it is the landlord's responsibility to register the agreement, it is the tenant's responsibility to pay the associated fees. I’d like to conclude here about your query, is registration of rent agreement compulsory in Maharashtra. I hope this helps:) Read More: How Much Does Rent Agreement Cost? Is Rent Agreement for GST Registration Mandatory?

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