New Rental Rule from July 1: No Digital Stamp? Pay ₹5,000 Fine!
Landlord / Tenant

New Rental Rule from July 1: No Digital Stamp? Pay ₹5,000 Fine!

Introduction: A Big Change in India’s Rental Landscape

From July 1, 2025, landlords and tenants across India will witness a major transformation in how rental agreements are processed. Under the new government rule, failing to use a digitally stamped rental agreement will attract a penalty of ₹5,000. This seemingly simple update carries deeper implications—not just for compliance, but for transparency, legal validity, and security of rental transactions in India.

Whether you're a landlord leasing out a flat or a tenant moving into a rented home, this new rule directly impacts you. The focus is clear: digitize rental agreements to minimize fraud, speed up processes, and strengthen legal accountability.

People Also Read: How to Make a Rent Agreement Online in India: A Step-by-Step Guide

What Is the New Rental Rule from July 1?

The rule mandates that all new rental agreements must be digitally stamped via authorized platforms starting July 1, 2025. If you fail to comply, a fine of ₹5,000 will be levied on the landlord or property owner. This is part of a broader initiative under Digital India and aims to modernize how property agreements are created and validated.

Earlier, many rental contracts were handwritten or printed on paper with physical stamp papers attached. However, such documents are often:

  1. Easily lost or damaged

  2. Vulnerable to tampering

  3. Not registered or legally enforceable

With digital stamping, all documents are:

  1. Created online

  2. Legally valid

  3. Authenticated using secure government-approved platforms

  4. Stored digitally with traceable records

People Also Read: Understanding Tenant Rights: Protection Against Unlawful Eviction by Landlords

Why Is Digital Stamping Being Made Mandatory?

1. To Prevent Rental Fraud

Physical stamp papers can be forged or reused. There have been numerous cases of:

  1. Duplicate agreements

  2. Backdated stamps

  3. Fake landlord or tenant identities

Digital stamping ties each rental agreement to a unique identity (via Aadhaar/PAN) and transaction ID, eliminating the scope for forgery.

2. Legal Enforceability

Digital agreements with e-stamps are considered legally binding documents under the Indian Evidence Act, 1872. They are admissible in court without further validation.

3. Boost to Transparency

All digitally stamped documents are traceable and cannot be altered. This enhances trust between landlords and tenants and provides clarity on rent terms, duration, and renewal clauses.

4. Convenience for All Parties

The process is fully online—no more long queues at the stamp office or Sub-Registrar’s office. Users can generate, review, sign, and store the document from their mobile or desktop.

People Also Read: Gruha Jyothi Scheme, 2024: How to Avail Free Electricity for Your Home

What Is a Digital Stamp?

A digital stamp is an electronic version of a traditional stamp paper used for legal agreements. It is issued via licensed government portals and carries:

  1. A unique stamp number

  2. Time and date of issuance

  3. Purpose of stamping (e.g., Rental Agreement)

  4. State of issue and denomination value

  5. Verification QR code or digital watermark

In the context of rental agreements, this replaces the need for buying physical stamp paper from a vendor.

People Also Read: A Comprehensive Guide to Registered Rent Agreements in India

Key Benefits of Digital Stamping for Rental Agreements

 

Benefits for Landlords Benefits for Tenants
Faster registration process Legal security from unfair clauses
Prevents fraud and disputes Easy to verify and retrieve agreement
Secure cloud storage of documents Better clarity on rent terms
Saves costs in the long term Enforceable in court
Accessible anytime, from anywhere Encourages standardized rental norms

 

People Also Read: The Ultimate Legal Advice Checklist For New Homeowners

 

Who Is Affected by the New Rule?

Landlords

  1. Must switch from paper-based rental agreements to digitally stamped ones.

  2. Must use authorized online platforms for agreement generation.

  3. Can be fined ₹5,000 if they fail to comply.

Tenants

  1. Benefit from increased legal safety.

  2. Should insist on digital agreements for clarity and protection.

  3. May face issues if the agreement is not properly stamped.

Property Brokers/Agents

  1. Must educate landlords and tenants about the digital stamping process.

  2. Should assist in generating proper digital agreements.

People Also Read: Gst Applicability On Rent Of Residential Propert

Comparison: Old Method vs. New Digital Method

 

Feature Traditional Method Digital Stamping
Stamp paper Physical, from vendor Online via government portal
Risk of forgery High Low
Cost Often inflated Transparent and fixed
Legal validity Often questionable Fully enforceable
Time taken 2-5 days 30 minutes to 2 hours
Accessibility Local and limited Global and cloud-based
Amendment flexibility Difficult Easy with version control

 

People Also Read: What Is A Lease Agreement

Step-by-Step: How to Digitally Stamp a Rental Agreement

Here’s how you can comply with the July 1 rule:

Step 1: Choose an Authorized Digital Stamping Platform

Use state-approved or government-licensed platforms such as:

  1. SHCIL (Stock Holding Corporation of India Ltd.)

  2. State-specific portals (e.g., Maharashtra eStamping, Karnataka Kaveri Online)

  3. Trusted legal tech platforms like LegalKart

Step 2: Fill in Rental Agreement Details

  1. Names of landlord and tenant

  2. Property address

  3. Duration of lease

  4. Rent amount and payment cycle

  5. Security deposit details

  6. Maintenance responsibilities

  7. Termination clauses

Step 3: Upload KYC Documents

Required documents include:

  1. Aadhaar/PAN of both parties

  2. Electricity bill/property tax receipt (for address proof)

  3. Photographs (passport size)

Step 4: Pay Stamp Duty Online

Stamp duty differs by state and property type. Common slabs:

  1. Maharashtra: 0.25% of the total rent + deposit for 11 months

  2. Delhi: Fixed ₹100 stamp duty for rental agreements up to 11 months

  3. Karnataka: ~0.5% of annual rent + deposit

Once payment is made, you’ll receive a digital stamp certificate instantly.

Step 5: Add Digital Signatures

Parties can sign using:

  • Aadhaar-based eSign

  • DSC (Digital Signature Certificate)

  • OTP-based authentication

Step 6: Download and Save Your Rental Agreement

You’ll receive:

  1. A PDF of your rental agreement

  2. A digital stamp certificate

  3. A verification link

Save this for future reference or legal use.

People Also Read: Why you should get your rent agreement registere

What Happens If You Don't Comply?

Starting July 1, failure to use digital stamping for your rental agreement can result in:

  1. Fine of ₹5,000 per instance

  2. Agreement being treated as legally defective or invalid

  3. Difficulty in enforcing clauses in court

  4. Risk of disputes and eviction complications

In some states, repeat offenders may face additional penalties under the Indian Stamp Act.

Common Misunderstandings and Clarifications

"Digital stamping is expensive and technical."

Clarification: Most digital platforms charge only the official stamp duty + a nominal processing fee. No hidden costs.

"I still have a valid old rental agreement—do I need to switch?"

Clarification: Existing agreements need not be changed mid-term. But upon renewal, the digital stamping rule applies.

"This is only for commercial rentals."

Clarification: The rule applies to both residential and commercial rental agreements.

"I don’t trust online portals with my personal data."

Clarification: Government-authorized portals follow strong data encryption protocols and comply with the IT Act, 2000 and Data Protection Bill 2023.

Why This Change Is a Big Deal for Real Estate

The ₹5,000 penalty isn’t just about enforcement—it’s a push towards systemic reform.

Aligns with Digital India

This move supports paperless governance, smart recordkeeping, and e-citizen services.

Attracts Institutional Investors

Clear, tamper-proof rental documentation builds confidence for REITs, investors, and foreign companies investing in Indian real estate.

Helps State Governments Earn More Revenue

Digital stamps prevent under-reporting and fake documentation, helping the government collect accurate stamp duty and registration fees.

States Already Using Digital Stamping Effectively

Many Indian states have adopted digital stamping successfully:

  • Maharashtra – Fully integrated e-registration of rent agreements

  • Karnataka – Kaveri portal enables online documentation and verification

  • Delhi – Simple flat-fee stamping with Aadhaar integration

  • Tamil Nadu – Digitally signed tenancy agreements accepted in civil courts

Now, with the July 1 mandate, a uniform digital framework is being rolled out nationally.

What Should You Do Next?

For Landlords

  1. Switch to digital agreements immediately for any new rental

  2. Keep documentation like Aadhaar, PAN, and utility bills handy

  3. Use LegalKart or a verified platform for e-stamping and agreement drafting

For Tenants

  1. Ask your landlord for a digitally stamped agreement

  2. Read all clauses carefully before signing

  3. Save your e-agreement copy for future proof

For Legal Support

If you’re confused or need expert help, contact verified legal consultants through platforms like LegalKart. They offer:

  1. End-to-end rental agreement drafting

  2. State-specific stamp duty calculations

  3. Legally valid formats with eSign integration

Future of Rental Laws in India: What’s Next?

The digital stamping mandate is likely just the first step. Expect future reforms such as:

  1. Mandatory e-registration of rental agreements

  2. Online rent control compliance

  3. AI-based rent dispute resolution

  4. Standardized rental formats across states

These steps would not only reduce manual errors but also make India’s rental ecosystem globally competitive.

Conclusion: Go Digital or Pay the Price

The July 1 rule marks a clear shift toward digitization and legal accountability in rental transactions. By mandating digital stamping and imposing a ₹5,000 fine for non-compliance, the government has made its intentions clear—make rental agreements secure, transparent, and accessible to all.

Whether you are a landlord or tenant, this is not a change to delay. Embrace the digital future today and avoid last-minute hassles. Legal compliance is not just a formality—it’s your protection against future disputes.

A Comprehensive Guide to Registered Rent Agreements in India
Landlord / Tenant

A Comprehensive Guide to Registered Rent Agreements in India

Renting a property involves several legal steps, one of the most crucial being the creation of a rent agreement. A rent agreement lays down the terms and conditions agreed upon by the landlord and the tenant. While a simple, unregistered rent agreement might suffice for short-term rentals, a registered rent agreement is essential for longer-term leases and offers greater legal protection. This blog will provide a detailed guide on registered rent agreements in India, explaining their importance, the process of drafting rent agreement online and registering them, and the services available to assist you.

What is a Registered Rent Agreement?

A registered rent agreement is a legal document that records the terms and conditions under which a property is rented out, and it is registered with the Sub-Registrar's office. Unlike an unregistered rent agreement, a registered one is legally binding and provides stronger legal standing in the event of disputes.

Importance of a Registered Rent Agreement

  1. Legal Validity: A registered rent agreement holds greater legal validity and is enforceable in court.

  2. Dispute Resolution: It provides a clear reference for resolving disputes between the landlord and tenant.

  3. Proof of Residence: It serves as a valid proof of address for tenants.

  4. Clarity of Terms: It ensures that all terms and conditions are explicitly stated and agreed upon by both parties.

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

Drafting a Rent Agreement

Key Components of a Rent Agreement Draft

When drafting a rent agreement online, ensure that the following key components are included:

  1. Details of the Parties: Full names, addresses, and contact details of both the landlord and the tenant.

  2. Description of the Property: Address and description of the rental property.

  3. Rent and Deposit: Amount of rent, due date, payment method, and security deposit.

  4. Lease Duration: Start and end dates of the rental period.

  5. Maintenance and Repairs: Responsibilities for maintenance and repairs.

  6. Termination Clause: Conditions under which the agreement can be terminated by either party.

  7. Renewal Clause: Terms for renewing the lease agreement.

  8. Signatures: Signatures of both parties and witnesses.

How to Register a Rent Agreement

Steps to Register a Rent Agreement

Registering a rent agreement involves several steps. Here's a step-by-step guide on how to register a rent agreement:

  1. Draft the Agreement: Use a rent agreement draft template or hire a professional to draft the agreement.

  2. Stamp Paper Purchase: Purchase non-judicial stamp paper of the appropriate value. The stamp duty varies by state.

  3. Execution of the Agreement: Both parties must sign the agreement in the presence of two witnesses.

  4. Appointment with Sub-Registrar: Schedule an appointment with the local Sub-Registrar's office.

  5. Submission of Documents: Submit the signed agreement, along with required documents such as identity proof and address proof of both parties, and proof of ownership of the property.

  6. Payment of Registration Fees: Pay the registration fee, which also varies by state.

  7. Verification and Registration: The Sub-Registrar will verify the documents and register the agreement. Both parties may need to be present for biometric verification.

  8. Collection of Registered Agreement: After registration, collect the registered rent agreement from the Sub-Registrar’s office.

Required Documents for Registration

To register a rent agreement, you typically need the following documents:

  1. Identity Proof: Aadhaar card, PAN card, passport, or voter ID for both landlord and tenant.

  2. Address Proof: Utility bill, Aadhaar card, or bank statement for both landlord and tenant.

  3. Property Documents: Proof of ownership or authority to lease the property.

  4. Photographs: Passport-sized photographs of both parties.

  5. Rent Agreement: The signed rent agreement on stamp paper.

Rent Agreement Services

Online Rent Agreement Services

With the advancement of technology, several online platforms now offer rent agreement services, making the process convenient and efficient. These platforms provide templates, assist with drafting and registration, and even handle the submission of documents. 

Benefits of Using Online Services

  1. Convenience: Create and register rent agreements from the comfort of your home.

  2. Time-Saving: Avoid long queues and multiple visits to government offices.

  3. Professional Assistance: Get help from legal experts to ensure the agreement is legally sound.

  4. Digital Storage: Keep a digital copy of the agreement for easy access.

How to Use Online Rent Agreement Services

Using online rent agreement services typically involves the following steps:

  1. Select a Platform: Choose a reliable online platform that offers rent agreement services.

  2. Fill in Details: Provide necessary details such as the names of the landlord and tenant, property address, rent amount, and lease duration.

  3. Draft Agreement: Use the platform’s template to draft the agreement, making sure all details are accurate.

  4. Review and Edit: Review the drafted agreement and make any necessary edits.

  5. E-Stamping and Payment: Pay for the e-stamping and registration fees online.

  6. Execution and Submission: Sign the agreement digitally (if available) or physically, and submit the required documents.

  7. Registration: The platform will handle the registration process with the Sub-Registrar's office.

  8. Receive Registered Agreement: Once registered, you will receive a copy of the registered rent agreement.

People Also Read: Lease Deed Registration: Everything You Should Know

Conclusion

A registered rent agreement is a crucial document that provides legal protection and clarity for both landlords and tenants. Understanding the process of drafting and registering a rent agreement can help ensure that all parties are protected and that the rental relationship runs smoothly.

By utilizing rent agreement services, especially online platforms, the process becomes more convenient and efficient. Whether you are a landlord looking to lease your property or a tenant seeking a new home, having a registered rent agreement in place is essential for a hassle-free renting experience.

Remember, while creating a rent agreement might seem like a straightforward task, it is always advisable to seek professional assistance to ensure that all legal requirements are met and that the agreement is fair and comprehensive.

How to Make a Rent Agreement Online in India: A Step-by-Step Guide
Landlord / Tenant

How to Make a Rent Agreement Online in India: A Step-by-Step Guide

Rent agreements are essential documents for both landlords and tenants, outlining the terms and conditions of renting a property. With the advent of technology, creating a rent agreement online has become a convenient and efficient process. This blog will guide you through the steps to make a rent agreement online, explain the relevant laws in India, and clarify key terms such as unregistered rent agreement, registered rent agreement, power of attorney for rent agreement, and more.

You can consult Landlord/Tenant Lawyers in your cities for best legal advice

Understanding Rent Agreements

What is a Rent Agreement?

A rent agreement is a legal document that outlines the terms under which a landlord agrees to rent a property to a tenant. It includes details such as the duration of the lease, rent amount, security deposit, maintenance responsibilities, and other important conditions.

Unregistered Rent Agreement vs. Registered Rent Agreement

  • Unregistered Rent Agreement: An unregistered rent agreement is a document that is not registered with any government authority. It is usually valid for a short duration (less than 11 months) and is often used for informal rental arrangements.

  • Registered Rent Agreement: A registered rent agreement is one that is registered with the Sub-Registrar's office. It is legally binding and provides more protection to both parties. Registration is mandatory for agreements exceeding 11 months.

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

Steps to Make a Rent Agreement Online

1. Choose a Reliable Rent Agreement Service

The first step is to select a reliable online platform that offers rent agreement services. These platforms provide templates and guidance to create a legally sound agreement.

2. Gather Necessary Information

Collect all the necessary information required to draft the agreement. This includes:

  1. Details of the landlord and tenant (name, address, contact information)

  2. Description of the rental property (address, type, size)

  3. Duration of the tenancy

  4. Rent amount and payment details

  5. Security deposit amount

  6. Maintenance and repair responsibilities

  7. Any additional terms and conditions

3. Choose the Type of Agreement

Decide whether you need an unregistered rent agreement or a registered rent agreement. For leases longer than 11 months, a registered agreement is mandatory as per the Registration Act, 1908.

4. Draft the Rent Agreement

Use the online platform's template to draft the rent agreement. Ensure all necessary details are included and clearly stated. Most platforms provide a rent agreement draft that you can customize according to your requirements.

5. Review and Finalize

Review the drafted agreement carefully to ensure all information is accurate and all terms are acceptable to both parties. Make any necessary revisions before finalizing the document.

6. Execute the Agreement

Once the agreement is finalized, both parties need to sign it. For an unregistered rent agreement, signatures of the landlord and tenant, along with witnesses, are sufficient.

7. Register the Agreement (If Applicable)

For a registered rent agreement, follow these additional steps:

a. Stamp Duty Payment

Pay the required stamp duty, which varies by state. This can often be done online through the state's e-Stamping portal.

b. Visit the Sub-Registrar's Office

Both parties (or their representatives with a power of attorney for rent agreement) need to visit the Sub-Registrar's office with the signed agreement and proof of identity. The agreement will be reviewed, and biometric verification may be required.

c. Registration

The Sub-Registrar will register the agreement, making it legally binding. A copy of the registered agreement will be provided to both parties.

Legal Considerations and Relevant Laws

The Indian Contract Act, 1872

The Indian Contract Act governs the formation and enforcement of contracts, including rent agreements. It requires that agreements are made by free consent of the parties and for a lawful consideration.

The Registration Act, 1908

This act mandates the registration of lease agreements for periods exceeding 11 months. Registered agreements offer greater legal protection and are admissible as evidence in court.

The Rent Control Act

Different states in India have their own Rent Control Acts, which regulate the relationship between landlords and tenants. These acts often specify rent ceilings, eviction procedures, and other tenant rights.

Power of Attorney for Rent Agreement

In cases where the landlord or tenant cannot be physically present to sign the agreement, a power of attorney can be used to authorize another person to execute the document on their behalf. This should be a registered power of attorney to avoid any legal issues.

Differences Between Lease Deed and Rent Agreement

  • Lease Deed: Typically used for longer-term rentals (usually more than a year). Lease deed registration often associated with commercial properties and requires registration.

  • Rent Agreement: Commonly used for residential properties and shorter-term rentals (up to 11 months). It can be either registered or unregistered.

Advantages of Online Rent Agreement Services

Convenience

Creating a rent agreement online saves time and effort. You can draft, review, and finalize the agreement from the comfort of your home.

Legal Compliance

Online platforms ensure that the agreements are compliant with current laws and regulations. This reduces the risk of disputes and legal issues.

Cost-Effective

Using online services is often more cost-effective than hiring a lawyer to draft the agreement. Many platforms offer affordable packages.

Customization

Online templates are easily customizable to suit your specific needs. You can add or modify clauses as required.

How to Register a Rent Agreement Online

Step-by-Step Process

  1. Choose a Platform: Select an online platform that offers rent agreement registration services.

  2. Draft the Agreement: Use the platform's template to draft the agreement with all necessary details.

  3. Stamp Duty Payment: Pay the required stamp duty online.

  4. Digital Signatures: Some platforms offer the option of digital signatures, which can be used to sign the agreement online.

  5. Submission: Submit the signed agreement and required documents to the Sub-Registrar's office through the platform.

  6. Verification: The Sub-Registrar will verify the documents and register the agreement.

  7. Receive Registered Agreement: Once registered, you will receive a copy of the registered agreement.

Documents Required

  1. Proof of identity (Aadhar card, PAN card, passport, etc.)

  2. Proof of address

  3. Property documents (ownership proof, tax receipt, etc.)

  4. Passport-sized photographs of the landlord and tenant

Conclusion

Creating a rent agreement online in India is a straightforward process that offers convenience, legal compliance, and cost-effectiveness. Whether you need an unregistered rent agreement for a short-term lease or a registered rent agreement for a longer duration, our expert lawyers will draft a legally binding rent agreement online that protects both landlords and tenants. You can easily customize the online agreement to include essential terms. By understanding the relevant laws and following the step-by-step guide outlined above, you can ensure that your rent agreement is legally sound and protects the interests of both parties involved.

By leveraging technology and online rent agreement services, landlords and tenants can simplify the process, avoid potential disputes, and enjoy a hassle-free renting experience.

Lease Deed Registration: Everything You Should Know
Property

Lease Deed Registration: Everything You Should Know

Renting a house or a commercial property requires a formal lease agreement, such as a rent agreement online or a commercial lease agreement. This agreement, known as a lease deed, sets out the terms and conditions between the landlord and the tenant. To ensure the enforceability of the terms, lease deed registration is essential. Here’s an overview of the key aspects of lease deed registration:

Lease Agreement Registration

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 can get your lease agreement registered at the office of the Sub-Registrar of Assurances; in whose jurisdiction the leased property is situated. You need to register the lease within four months of signing the lease agreement. If you fail to do so, you may ask for an extension, but a hefty penalty may be levied. Both the tenant and the landlord need to be present at the time of registration. Two witnesses should also be present at the time of lease agreement registration. If one of the parties is unable to be present, then they can give the power of attorney to their lawyer and their lawyer can get the lease deed registered on their behalf. 

Following documents are required for registration of a lease deed: 

  • 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. 

  • Once, you have paid the lease deed registration fees and the required stamp duty, you will need to book an appointment with the sub-registrar. Remember, that a lease agreement registration online, does not mean that you will not have to go to the sub-registrar’s office. It just makes the process of lease deed registration easier. When you get the appointment, go to the sub-registrar’s office on the said date with all the relevant documents. The sub-registrar would finalise your registration. Documents required for online registration of lease agreement are the same as those required for physical registration of a lease agreement. 

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.

Soumya Shekhar
Soumya Shekhar 03 min read 43913 Views
Why you should get your rent agreement registered
Property

Why you should get your rent agreement registered

Looking to rent out your house to someone? Make sure that you enter into a rental agreement first. A rental agreement is a legal contract signed between the landlord and the tenant. A tenancy agreement registration serves as valid proof in case of any potential dispute. If you are renting a property for at least 12 months or more, it is mandatory to have a registered rental agreement. However, if the rental agreement is set up for less than a year, it is not legally required to have a registered rental agreement.

DIFFERENCE BETWEEN A REGISTERED AND A NON-REGISTERED RENTAL AGREEMENT

The differences between a Registered and a Non-Registered Rental Agreement are as follows:

Registered Rental Agreement

Non-Registered Rental Agreement

Rental agreements for 12 months or more.

Rental agreements for a period of less than 12 months.

Can be admitted as proof in a court of law.

Difficult to present as evidence in a court of law.

A notary may notarize a non-registered rental agreement. However, even then, it may be admissible only as proof of address and may not be sufficient to protect the parties' rights. You can prepare a non-registered rental agreement on INR 50 or INR 100 Stamp paper issued by the state.

Hence, in an 11-month rental agreement, registration is not mandatory. You would have noticed that typically, tenancy agreements are for 11 months. You may choose to enter into an 11-month rental agreement to avoid the compulsory registration requirement.

People Also Read This: Lease Deed Registration: Everything You Should Know

RENTAL AGREEMENT REGISTRATION

If the rental agreement is drafted for 12 months or more, then a rental agreement registration becomes essential. You can register a rental agreement at the registrar’s office in that city. The registration fee of a registered rental agreement differs from state to state. The registered rental agreement is legally binding on both the parties and is admissible as proof in a court of law.

A landlord may rent out his property for differing periods. Stamp duty on the rented property depends upon the time for which the property is rented:

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.

 

Only the rental agreements of more than one year should be registered. For other rental agreements that are of less than one year (for example, 11 months), notarizing it with the notary public and paying the stamp duty is good enough and credible.

Now that we have understood the basics of rental agreement registration, let us understand the procedure for registration of a rental agreement:

  • Get a rental agreement drafted by a lawyer.
  • If you are the tenant, you need to get the rental agreement printed on a specific value stamp paper.
  • Both tenants and landlords need to sign at the designated places on the rental agreements.
  • Get the signature of two witnesses who are not related to either the landlord or the tenant.
  • After this, both the tenant and the landlord must be physically present at the sub-registrar’s office of their sub-locality.
  • Both tenants and the landlord, and two witnesses need to carry their two passport-sized photos and ID cards for verification and validation.
  • Any third person or any agent cannot carry out the registration of the rental agreement.
  • As soon as you pay the stamp duty, the registration is complete.

The registration fee for a rental deed agreement is typically around INR 1100. The rental agreement registration fee is payable regardless of the rental amount or the property value. The stamp duty charges are also applicable to the registration fee for the rent agreement.

Documents Required for Rent Agreement Registration

Following documents are required for a registered rent agreement:

  • Original ownership documents or title deed.
  • Two passport-sized photographs (tenants, landlords, and two witnesses).
  • Aadhar card
  • A government authorized identity proof (voter Id, passport, driving license, etc.)
  • If the tenant is a company, then an authorization letter from the company is required. This authorization would validate the tenant’s right to register.

Online Rental Agreement Registration

In today’s world, whether it is about buying products or choosing services, most individuals look at nowhere else but the internet. The same situation can also be seen when it comes to making a Rental Agreement. However, there are only a few states in India which allow online rental agreements. Let’s find out how registering rent agreement online works.

Process for Online Rental Agreement Registration:

The process to get an online registered rent agreement is as follows:

  • Firstly, visit the authorized government website.
  • Find out the online rent agreement option on the main page.
  • Choose your jurisdiction from the given list.
  • Provide your details required in the form.
  • Fill in the details of the other party.
  • Submit the details of tenant, identifiers, and landlord
  • Now move to the next step, i.e., rental agreement information, and fill in the details

The documents required for an online registered rent agreement are:

  • PAN card and Aadhar number of tenants, landlord, and two witnesses.
  • A biometric scanner to scan thumb.

People Also Read This: All You Need To Know About Drafting Lease Agreements?

How to Create a Rent Agreement Draft?

A registered rent agreement sample is typically available online on many websites. A rental deed agreement should contain the following elements:

  • Names and addresses of the landlord and the tenant.
  • A brief description of the property.
  • The date by which the rent would need to be paid.
  • What would be the mode of the rent payment?
  • Exit options.
  • Amount of refundable security deposit and how and when would it be refunded?
  • What utilities are provided to the tenant?
  • What facilities can the tenant use?

A rent deed means a contract between the landlord and the tenant, and hence, it should serve not only as proof of the tenancy but also as an instrument to protect the parties' rights. Hence, it is preferred that you consult a local lawyer before drawing up a rental deed agreement and get clarity regarding registration, stamp duty, etc.