Do you want to rent your home to someone? Be sure to sign a lease first. A lease is a legal contract signed between the landlord and the tenant. The registration of a rental agreement serves as valid proof in the event of a possible dispute. If you are renting a property for at least 12 months or more, it is mandatory to have a registered lease. However, if the lease is entered into for less than one year, the law is not required to have a registered lease. A notary can notarize an unregistered lease. But even then, it may only be admissible as proof of address and may not be sufficient to protect the rights of the parties. You can prepare an unregistered rental agreement on state-issued INR 50 or INR 100 stamp paper. See also: Arbitration clause in leases and how it can help landlords and tenants To be on the safe side, parties to a lease should inquire either with the land registry or with lawyers, if registration is required. A rental document is usually executed in counterparts, both of which are sent to the stamp office of the Tax Department for stamping within 30 days of the execution date. The laws that govern the registration of documents in the land register are mainly contained in the Land Registry Ordinance (the laws of Hong Kong). Strictly speaking, the Land Registry Ordinance does not contain any provision requiring the registration of documents.
It only describes the consequences of non-registration. Therefore, the question should be: Why should some tenancy documents be registered in the land registry? Maintenance: The agreement must clearly indicate who is responsible for paying the monthly maintenance fee. Deposit and symbolic amount: The agreement must clearly mention the deposit and what happens to it when you leave the premises. It should also mention the symbolic amount that the owner received from you. You will have to pay a stamp duty when registering the rental agreement, which will vary depending on the city in which it is registered. This amount is paid by purchasing the stamp paper you owe to the government. In Delhi, stamp duty is 2% of the average annual rent, for leases with a maximum duration of five years. In Noida, you have to pay 2% of the annual rent as stamp duty, for rental contracts of up to 11 months. The process of obtaining a registered lease online is as follows: the owner of a domestic property must also submit a notice of new rental or renewal agreement (Form CR109) to the Rating and Evaluation Commissioner for confirmation within 1 month of the execution of the rental document. A landlord is not entitled to maintain a rent refund claim under a tenancy document (in the event that the tenant does not pay the rent) if the Commissioner does not approve Form CR109. However, a landlord who does not submit the form within one month can do so later after paying a fee of $310.
The registration fee for a rental agreement is usually around INR 1100. The lease registration fee is payable regardless of the amount of rent or the value of the property. The stamp duty fee also applies to the rental registration fee. To reduce costs, tenants and landlords sometimes enter into a verbal lease agreement and avoid signing a lease. Sometimes they also document the agreement and set the terms regarding the rental, but choose not to save the document. This is because both parties are responsible for paying the registration fee when a rental agreement is created and registered. The landlord is also required to declare his rental income as soon as the lease is legally binding. However, entering into a lease without registration is illegal and could prove to be a risky venture for both parties, especially in the event of future litigation.
Now that we have understood the basics of registering leases, let us understand the procedure for registering a lease: according to the provisions of the draft Model Law on Rents, 2019, landlords cannot increase the specified rent for the entire period for which a lease was signed. For example, if the lease expires after 11 months, the landlord cannot increase the monthly rent during that period. Only after the expiration of this period and at the time of registration of the new rental agreement is the owner legally allowed to increase the interest rate, which usually does not exceed 10% of the existing amount. In addition, the landlord must notify the tenant three months in advance before increasing the rent under the bill. Leases for a period of less than 12 months. A registered lease template is usually available online on many websites. A lease must contain the following: If the rental document is a lease, it must also be registered with the land registry within 30 days of the date of execution, otherwise it will lose priority under the Land Registry Ordinance (Cap.128 of the Laws of Hong Kong). Further information on the registration of rental documents can be found under the corresponding questions and answers. The main purpose of registering documents with the Land Registry is to inform the public about all documents relating to land in Hong Kong and to establish a priority system for documents relating to a particular property. Once a document is recorded, it is assumed that the public has become aware of its existence and content. The date of registration also affects the priority of a party`s rights in a particular asset. A written lease, which is an instrument that concerns the land, is of course registrable with the land registry office.
Therefore, with an 11-month lease, registration is not mandatory. You would have noticed that leases are usually valid for 11 months. You can subscribe to an 11-month lease to avoid the registration requirement. If the lease is written for 12 months or more, a lease registration becomes essential. You can register a rental agreement with the registration office of that city. The filing fee for a registered lease varies from state to state. The registered lease agreement is legally binding on both parties and admissible as evidence in court. Number of residents: The agreement must specify what will happen if your family members come to you in the future. In today`s world, whether it`s buying products or choosing services, most people don`t look anywhere else but the internet.
The same situation can also be observed when it comes to signing a lease. However, there are few states in India that allow online leases. Let`s find out how registering a rental agreement online works. A rental deed means a contract between the landlord and the tenant and should therefore serve not only as proof of the lease, but also as an instrument to protect the rights of the parties. Therefore, it is best to consult a local lawyer before drafting a rental agreement and get clarification on registration, stamp duty, etc. The lease must include the names and addresses of the landlord and tenant, the terms of the lease, the rental period, the rent and the amount of the deposit, the restrictions imposed on both parties, the conditions for terminating the contract, the conditions for renewal and details of who should bear other costs such as maintenance costs, repairs, etc. Click here to check the format of a rental agreement in English. Visitors: The agreement must include a clause on who is allowed to visit you at what time. Until a lease is registered with the sub-registrar`s office, it has no legal validity.
It is in the interest of both parties to draft an agreement with specific conditions and register it. After drafting the rental agreement, the owner must print it on stamp paper. Once the tenant and landlord have signed the documents in the presence of two witnesses, they must register them at the Deputy Registrar`s office after paying the required fee. The Registration Act of 1908 requires the registration of a rental agreement if the term of the lease is longer than 11 months. Please note that notarized rental agreements are not identical to registered documents. In the event of a dispute between the landlord and the tenant, the court will not allow a notarized agreement as evidence. Therefore, it is important that the lease is properly registered. In some states where the electronic stamp feature is available for leases, you do not need to physically purchase the stamp paper. You can register on the website of the Stock Holding Corporation of India Ltd (SHCIL) and see if the state where you live offers this option.
Currently, Assam, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Delhi-NCR, Tamil Nadu, Uttarakhand and Uttar Pradesh allow electronic stamping of leases. To promote rental housing in India, the government has formulated a draft policy, the Model Tenancy Bill, 2020, to make the transaction beneficial to both landlords and tenants. The provisions established under this model policy should be the guiding principles for drafting a lease agreement. According to the union`s housing minister, the policy, which is expected to soon replace existing rental housing laws across India, will be unlocked through a crore unit in India`s rental housing markets. Repairs: The agreement must specify who bears the costs associated with wear and tear. The bill also stipulates that tenants who extend their stay in rented accommodation, as mentioned in the agreement, are required to pay twice the amount of rent for the first two months and four times the rent for the following months. .