Rental Agreement Registration Act

In order to reduce costs, tenants and landlords sometimes agree orally on the lease and avoid the execution of a tenancy agreement. At one point, they also document the agreement and set the terms of the lease, but decide not to register the document. This is due to the fact that both parties must pay a registration fee when a lease is entered into and registered. The lessor is also required to declare his rental income as soon as the lease is final. However, entering into a non-registration lease is illegal and could be a risky transaction for both parties, particularly in the event of future litigation. Before moving forward, it is important to keep in mind that each state has its own right to rent, while certain provisions of the central laws apply. Housing.com has launched a fully digital, contactless service to create leases. If you want to complete the formalities quickly and without any problems, you just have to fill out the details, create the online rental contract, sign the contract digitally and get an electronic stamp in seconds. The tenancy agreement should include the name and address of the landlord and tenant, the terms of the tenancy, the duration of the lease, the rent and the amount of the deposit, the restrictions imposed on both parties, the terms of termination of the contract, the terms of renewal and the indication of other costs, such as maintenance costs, repairs, etc. In some countries where electronic stamping is available for leases, you don`t need to physically purchase stamp paper.

You can register on the website of the Holding Company of India (SHCIL) and verify that the state in which you reside offers this establishment. Currently, Assam, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, NCR Delhi, Tamil Nadu, Uttarakhand and Uttar Pradesh allow electronic signing of leases. The new Tamil Nadu Law made it mandatory to grant written legal status for all tenancy agreements comprising all housing and commercial contracts, with the exception of premises registered under the Factories Act 1948. The Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017 (TNRRL Tenancy Act, 2017) is introduced to regulate the leasing sector in Tamil Nadu`s Municipal Corporation, Municipality and Town Panchayat. The bill also stipulates that tenants staying in a rental unit, as mentioned in the agreement, will be required to pay double the rent for the first two months and four times the rent in the following months. Since only contracts were to be registered for more than a year, many people began to enter into 11-month contracts to avoid the need to register the agreements. The issue of ambiguity in oral treaties had also implicated the courts in the resolution of disputes. A lease agreement provides for a short-term lease, which will be extended later after the deadline expires. Typically, a landlord and tenant enter into a lease for an 11-month period with a regular renewal option. Since the current Rent Control Act largely applies to tenants, but only applies to leases of at least 12 months, the definition of an 11-month pact helps landlords take preventive eviction measures. Due to the archaic nature of the law, the new Standard Rents Act was recommended in 2019.

This was repeated in Section 17 of the Registration Act of 1908. The registration fee for a lease in Maharashtra depends on the rent situation. The registration fee is Rs 1,000 if the property is located below an urban business area and is 500 aff.