Why Should You Get Your Rent Agreement Registered?
Are you willing to get a property for rent? If so, then ensure to consider the rental agreement first. It is a legal agreement that is signed between tenants and property owners. The rental agreement is also known as the tenancy agreement. It is the registration that serves as valid proof regarding a potential dispute.
Top Mistakes To Avoid in a Rental Agreement
Registered and Non-Registered Rental Agreement
The Registered Rental Agreement
- Here the agreement is valid for 12 months or more.
- Submit as proof in court
The Non-Registered Rental Agreement
- The rental agreement is valid for 12 months or less.
- Hard to present in court as evidence.
However, the notary might be notarizing it as a non-registered rental agreement. They might be considered as proof of address and unable to protect the party's rights. Therefore, you can feel free to opt for the non-registered rental agreement without thinking twice.
The main thing is the rental agreements are usually considered for 11 months period, and the registration isn't mandatory. So people can select to enter into the 11-month standard rental agreement. With this, they can easily avoid the compulsory registration requirements.
Multiple ways of Executing the Rental Agreement
There are two different ways of executing the rent agreement is present, and that is
The notarized agreement is something that is a standard rental agreement that is printed on stamp paper. A public notary signs it, and the public notaries are denoted as the majority of lawyers.
Benefits of the Notarized Agreement
- No Stamp Charges: there is no need to pay the stamp charges on such an agreement. Besides that, you might need to pay the notary fee of INR 200/- to INR 500/-
- Simple to the Executive: it is easy to execute the notarized agreement, and feel free to pay a visit to the lawyer's office.
- Minimize theft and Fraud: there are less possibilities of document fraud and theft.
- Witness Documents: it is a document that acts as the witness to the agreement.
The Registered Agreement
The registered rent agreement is the one that is printed on the stamp paper. It is registered with the sub-registrar of the area. The main thing is that it is quite similar to registering the sale deed of the property.
The registration process is the one that can be done online or by person by visiting the sub-registrar's office. In some cities or states, there are some facilities present that offers online registration of these documents.
Registering a rent agreement needs to pay stamp duty along with the registration charges. These charges are based on the amount of rent that is mentioned in the document. These charges vary from one state to another and offer different concessions to women regarding stamp duty.
Benefits of the Registered Rent Agreement
- Admissible in court: according to the registration act of 1908, such an agreement is admissible in a court of law. Besides that, it serves a sense of security to the property owners.
- Verified: The registered rent agreement is the one that the sub-registrar or registrar of the office verifies.
Also Read: Everything You Need to Know about the Rent Agreement
Vital Details Mentioned in the Rent Agreement
- Address, contact details, and name of the landlord.
- The tenant's name, contact details, and address.
- The address of the rental property.
- Lock in period
- Penalty amount (optional)
- Both parties should agree on the annual increase in the rental amount.
- Grounds for contract termination
- Term of contract
Documents needed for Rent Agreement Registration
The Tenants and Property Owners need to know that the listed documents are required for the Registration of the Rental Agreement:
- Aadhar card
- Original ownership documents/title deed.
- 2 passport-size photos of tenants, two witnesses, and landlords.
- The government authorized identity proof like passports, driving licenses, voter IDs, and more.
Also Read: Top Mistakes To Avoid in a Rental Agreement
The rental agreement shows that the tenant and property owners both play a vital role during the process. On top of that, it is a simple and easier procedure that can be completed within the shortest span.