What is a Rental Agreement Registration or what is registered rent agreement?
A rental deed is a contact between the Owner of the property and the tenant where a property owner gives the tenant the occupy and utilise the property for the specified purpose. It records all the key elements that the owner and the tenant have agreed to in relating to the tenancy. (It’s a legal document between the land lord and the tenant which explains about the prescribed terms and conditions through which the rented premises is rented out).
Registration of agreement:
If you ask why we need to register a Rental agreement, the answer is that the registration gives the safety. The alteration in the provisions need to be incorporated only through re-registration. Further this gives transparency and trust. Further Registration gives a security to both the parties.
Types of Renal agreement
11 months tenancy agreement: This is the most common one which is widely used by many of us. This is a rental agreement for 11 months of period. Usually the landlord and the tenant use to renew the renal agreement at the end of the 11th month.
what is a rental lease
The Commercial lease agreement: The CA which resembles the commercial lease agreement is the one where the tenancy property is utilised for the commercial purpose. The purpose of the usage should not be for domestic.
Long term Lease agreement: A lease can also be for long term. Here a lump sum of money is deposited to the land lord and while vacating the premised, the same amount will be retuned back by the tenant to the tenant.
Written agreement is always good
A rental agreement may be either written or oral but it is always safe for both tenant and landlord to make the agreement in writing. If there is any dispute between the tenant and the landlord, this written agreement will only be considered as a valid evidence before the court of law.
What are the stamp duty for 11 month rent agreement or Stamp paper
For an rental agreement for a period of 11 months or below need not be registered. Hence it is sufficient that can print the said rental agreement in a stamp paper for Rs. 20/- or above. For a registered rental agreement for company, the stamp duty shall be 1% of rent plus deposit.
Difference between Rental Deed and Lease Agreement
- Period: The major difference between Lease and rental is that the term. Mostly the lease agreement shall be for a period of 12 months or more ie., to say it will always for a longer period. But whereas in case of rental, the period of time shall be very short ie to say 11 months or below.
- Registration of rental agreement: In the case of lease agreement, the registration is compulsory as that is a contract for more than 12 months of period. But whereas the registration process is not needed as in case of Rental deed where the term of agreement is below 12 months.
- Eviction process: The eviction process is complex in case of lease which is not intricate in case of rental.
Important of rent agreement clauses india
Name and address of both the parties
Purpose of utility of the property (Domestic or Commercial)
Term of tenancy & Consideration
List of chattels
Termination notice period