Rent agreement process in Delhi: All you need to know-Aquireacres


The rental real estate market in the national capital Delhi is known for its diverse accommodation options ranging from affordable to luxury/luxury segments. If you are planning to occupy a residential rental property in Delhi, in addition to choosing a rental house, you should be familiar with the rent agreement process.

What is the procedure for a rent agreement in Delhi?

Here are the steps to create a rent agreement in Delhi:

  • The first step in preparing a rental agreement is reaching mutual consent. The landlord and tenant must agree to the terms and conditions of the rent. This should include points like security deposit, rental amount, maintenance fee, notice period, rental term, etc.
  • The next step is to print the mutually agreed terms, on stamp paper with the amount owed. Once the agreement is printed, both parties are advised to reread all the points, to avoid any conflict.
  • If all the points are correct, the parties must sign the agreement in the presence of at least two witnesses. The next step is to register the act at the local deputy registrar's office.

Is rent agreement mandatory in Delhi?

Rent agreements legally bind the landlord and tenant to comply with the terms mentioned in the contract. The general practice in Delhi is to enter into rent for a period of up to 11 months. The Registration Act of 1908 requires the registration of rent if the period of occupancy mentioned in the contract is more than 12 months. Therefore, to avoid the stamp duty and registration fee, people prefer to enter into a license and license agreement (rental agreement) for a period of 11 months. At the expiration of the 11-month period, if both parties agree, they draw up a new agreement for the next 11 months.

Is it mandatory to register a rent agreement in Delhi?

The Delhi Rent Control Act 1995 requires a written rental agreement and its registration. If the document is not registered, the result under the Registration Act of 1908 becomes applicable.

Registration of rent is not mandatory in Delhi if the rent term is less than 12 months. However, it is still desirable to register it to create a legally enforceable right. The parties can only present a registered rental agreement as legal evidence to resolve any legal disputes amicably. Since verbal agreements cannot be registered, they do not have any legal sanction.

 How to register a rent agreement in Delhi?

It is the responsibility of the landlord to register the rent under the Registration Act. To register the rental agreement, you can visit the registered office of the nearest branch. The rent can be registered within four months from the date of the creation of the rent deed. At the time of registration, both parties must be present with two witnesses. In the absence of one or both parties, the registration can be carried out through the power of the law holders, who have the right to terminate the contract.

Rent Agreement

Documents required for registration of a rent agreement in Delhi

Following are the documents needed for the registration of a rent agreement in Delhi:

  • The original / copy of the title deed as proof of ownership.
  • Tax receipt or index II.
  • Proof of address for both parties. It can be a copy of the passport, Aadhaar card, driver's license, etc. Take your original ID cards with you for verification.
  • Two passport size photographs of the owner and the tenant.
  • Proof of identities, such as a copy of your PAN card or Aadhaar card.
  • The lease is printed on stamp paper.

Benefits of online registration of rent agreement in Delhi

Online registration is now fully functional in Delhi. The online rental agreement process is highly reliable, transparent, and cost-effective. You can save time and money. There are some well-established companies that offer hassle-free online rental agreement services to their customers. You can use their platforms, from finding a house to rent to registering a lease.

What is the cost of rent agreement registration in Delhi?

The cost of registering a rental agreement in Delhi includes stamp duty, registration fee, legal advice fee, etc. In Delhi, you need to electronically stamp the agreement document and print the rental conditions on it. The stamp duty applicable to the rental agreement is as mentioned below:

  • For 11 months: 2% of the average rent for 12 months.
  • For less than five years: 2% of the average income for 12 months.
  • For a lease term of five to less than 10 years: 3% of the average rent for 12 months.
  • For a lease term of 10 to 20 years: 6% of the average rent for 12 months.
  • Apart from stamp duty, Rs 1,100 is paid for the registration fee.

If you hire a legal expert to write a lease and record the contract, it may cost you an additional amount.

Points to keep in mind when making a rent agreement

Rent is important documents for the landlord and the tenant. Here are some important points to consider when concluding a rental agreement:

The landlord can include a clause in the agreement that increases the rent by up to 10% every three years and also according to the Delhi Rent Control Law.

  • The tenant is entitled to receive a rent receipt for the payment of the rent.
  • The notice period must be established by both the landlord and the tenant in the agreement.
  • The details of the rent must be clearly stated.
  • Details of fixtures and fittings should be mentioned in the rent agreement.
  • When creating a rental agreement in Delhi, you need to clearly cover the critical points such as car parking provision, pet supplies, permitting for structural changes, etc.

Also, read- Rent Agreement process in Mumbai all you need to know -Aquireacres