Rent Agreement

Legal points before you sign

• Under the Registration Act 1908, a lease of immovable property for more than one year, or from year to year, must be registered. This is why short agreements of 11 months are common and are usually only notarised.
• An unregistered lease that legally needed registration has limited value as evidence in court, so for longer tenancies registration is the safer route.
• Stamp duty is payable on rent agreements under the stamp law of the state where the property is. In Delhi it is calculated on the rent and deposit and the length of the lease, so the value changes from case to case.
• In Delhi, the Delhi Rent Control Act 1958 does not apply to premises let at a monthly rent above a small limit, so most present-day tenancies are governed mainly by the agreement and general law.
• The landlord should be the owner or authorised by the owner. Tenants should ask for proof of ownership, such as the sale deed or an electricity bill in the owner's name.
• Police verification of tenants is required by Delhi Police orders, and landlords are responsible for getting it done.

What affects the total cost

• Stamp duty: depends on the monthly rent, security deposit and duration, and differs between Delhi, Haryana and Uttar Pradesh.
• Registration fee and visit: a registered agreement needs a sub-registrar appointment, with both parties and two witnesses present.
• Notary charges for an 11 month agreement.
• Drafting for special terms, such as commercial use, a lock-in period, fit-out, or company lease terms, takes more work than a standard residential agreement.
• Travel or delivery for getting both parties to sign, especially when the landlord lives in another city.

How long it takes

A notarised 11 month agreement usually takes one to two working days: one to agree the terms and approve the draft, and one to arrange stamp paper and get it signed and notarised. A registered agreement takes longer because a sub-registrar appointment has to be booked, both parties and two witnesses have to attend, and the stamp duty must be paid first. Delays usually come from the landlord and tenant not agreeing on deposit, notice period or maintenance, missing ownership proof, or the landlord being outside the city and needing to sign separately.

Common mistakes to avoid

• Not stating who pays maintenance, electricity, water and society charges. These cause more disputes than rent itself.
• Taking or paying a large deposit without writing down when and how it will be returned and what can be deducted.
• Missing a clear notice period and lock-in clause. Both sides should know how much notice is needed to leave and what happens if someone leaves early.
• Skipping police tenant verification in Delhi. It is the landlord's duty and protects both sides.
• Renewing an expired agreement only by word of mouth. Make a fresh agreement or a written renewal every time, so the address proof and rent terms stay valid.

What you get at the end

You receive the signed agreement on stamp paper, notarised for an 11 month tenancy or registered with the sub-registrar for a longer one. Both parties should keep an original. Tenants commonly use it as address proof for bank accounts, gas connections and some ID updates, and for house rent allowance claims with their employer. Landlords should keep it with the police verification receipt and rent records for tax purposes.

In Delhi NCR

• Delhi agreements use e-stamp paper through SHCIL, and registered leases are done at the sub-registrar office for the area where the property is.
• Delhi Police offers tenant verification online and at police stations; landlords should complete it as soon as the tenant moves in.
• Gurugram and Faridabad properties follow Haryana stamp duty and registration at the local sub-registrar or tehsil, while Noida and Ghaziabad follow Uttar Pradesh rules. Use the stamp paper of the state where the property is.
• For company leases and commercial shops, also check the property's permitted use under municipal and master plan rules before signing.
• Outside NCR, the team can guide you online on drafting and tell you the stamp and registration steps for your state where possible.