Property

Lease Deed Registration: Everything You Should Know

LegalKart Editor
LegalKart Editor 03 min read 28514 Views
Last Updated: Dec 10, 2023
Rent Agreement Registration is a written agreement between a landlord and a tenant. Know documents & fees required for the online lease deed process.

What is a Lease deed? 

A lease deed is a legally binding document that details the terms and conditions of renting a property and is signed by both the landlord and the tenant of the rented property. Details such as the monthly rent, the length of the lease, the amount of the security deposit, who is responsible for upkeep, and whether or not there are any limits on how the property can be used are included. The lease deed is a legally binding document that serves to protect both the landlord and the tenant, as well as to assist in the prevention of any disagreements or misunderstandings that may arise in the future. Before signing the lease deed, it is essential for both parties to give it considerable consideration and make sure they fully comprehend its contents in order to confirm that they are in agreement with its terms and circumstances. A happy and harmonious renting experience can be created with the help of a lease deed that has been carefully designed to provide clarity regarding the expectations and obligations of both parties. 

Lease Agreement Registration process in 2023

If your lease deed exceeds 12 months, then you require a lease agreement registration. If you have not registered your lease agreement, you cannot present it as proof in a law court. Lease agreement registration also helps in protecting the rights of the parties. A landlord is more comfortable giving his house to a renter if the lease agreement is legally and validly registered. A lease agreement need not be registered if it is only for 11 months. This is why you would see a common practice of leasing out properties for only 11 months. 

Before you start the lease agreement registration process, you need to have a valid rent agreement in place. Your rent/lease agreement should preferably have the following clauses:

  • Duration: You should mention the period for which the lease agreement is being entered into. If the time period is less than 12 months, then you need not register the same. 

  • Amount of rent: You should mention the amount of rent to be paid and the due date on which it is to be paid. 

  • Security deposit: You should mention the refundable deposit, which the landlord would keep as security, and the refund process. 

  • Lock-in period: This is the minimum period for which the parties need to be in agreement. They cannot terminate the agreement during this period. 

  • Notice period: The lease agreement should contain the period of notice each party needs to give to end the agreement. 

  • Usage: the renter needs to maintain the property in good condition.  

  • Terms related to sub-lease of the property. 

  • Rent escalation clause. 

  • Maintenance fees to be paid, if any. 

People Also Read This: Land & Property Registration: All You Need To Know

You will need to go to the office of the Sub-Registrar in the jurisdiction in where the leased property is located in order to register your lease agreement. After signing the lease agreement, you have a window of time of up to four months to register the lease. If you are unable to meet this requirement, you have the option of requesting an extension; nevertheless, you may be subject to a significant fine. During the moment of registration, the presence of the renter and the landlord is required simultaneously. During the process of registering the lease agreement, there should also be a total of two witnesses present. If one of the parties is unable to be there, then they can grant the power of attorney to their lawyer, who will then be able to register the lease deed on their behalf. This is only an option if the other party is also unable to be present. 

In 2023, you need following documents for lease agreement registration: 

  • The original proof of ownership of the property. 

  • Property documents of the property to be leased. A tax receipt can be submitted as a property document. 

  • Two photographs each of the parties and one photograph each of the witnesses. 

  • Address proof copy of the landlord, tenant and the witnesses. You can submit your Aadhaar, bank passbook, passport etc. as your address proof. 

  • The rental agreement printed on the stamp paper of the correct value. 

Stamp duty varies in different states. In Delhi, you need to pay stamp duty at the rate of 2% for lease agreements for a term of up to 5 years and at the rate of 3%, if the lease deed exceeds 5 years. The lease deed registration fees is INR 1100. This fee does not depend upon the value of the property. 

Those who read this Article also Consulted a Lawyer about lease deed registration process. 

Online Lease Agreement Registration

In some states, lease agreement registration may be done online as well. For instance, in Maharashtra lease agreement online registration may be done. Let us examine the process for lease agreement registration online: 

  • You need to first check if online lease agreement registration is possible in the state where you live. 

  • If yes, then visit a government authorised website and create your profile there.

  • You may need to enter certain information such as the location of your property, area of your property, what property type it is, address etc. 

  • Once you have completed this step, you would be given a token number which you will have to use as user ID for logging in next time. 

  • You would then be asked to enter details of the parties to the lease agreement. You need to mention details such as whether you are an individual or a company, what is your occupation, address etc. 

  • Once you have entered all the details, you will be asked if you want to pay stamp duty and lease deed registration fees online. You can pay these charges through an online challan. You need to enter certain information such as address of the property, landlord and tenant’s name, CTS number of the property (for properties already under city survey), location of the property etc. 

  • After you have completed the steps necessary to pay the lease deed registration costs and the requisite stamp duty, you will be needed to schedule a meeting with the sub-registrar. Keep in mind that registering a lease agreement online does not exclude you from having to visit the sub-office registrar's in person at some point in the future. The process of leasing deed registration is simplified as a result of this factor. After you have received the appointment, bring the necessary paperwork with you on the specified date and report to the office of the sub-registrar. Your registration would be completed in its entirety by the sub-registrar. The paperwork that must be submitted in order to register a lease agreement online is the same paperwork that must be submitted in order to register a lease agreement in person.

People Also Read This: Why you should get your rent agreement registered?

While online lease agreement registration is easier than physical registration, it is not prevalent in many states. It is always preferred that you take legal help to draft a lease agreement. A lawyer would guide you through the drafting and registration process and will help you save time.

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