Renewal of Rent Agreement

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INTRODUCTION

When the end of a lease is on the horizon, you have a decision to make. If the current tenant wishes to stay longer, you can choose between renewing a lease agreement and finding another tenant. Finding a new tenant can be a time-consuming and costly process that involves marketing the property, sorting through applications, showing the unit, and screening potential renters. The longer it takes to find a new tenant, the more expensive the process becomes.

PROCESS

Draft the agreement

  1. Print the agreement on Stamp paper of due value.
  2. The owner and the tenant should sign the agreement in the presence of two witnesses.
  3. Register the agreement at the sub-Registrar office paying the appropriate registration fees.

ADVANTAGES / FEATURES

Drafting The Agreement

To draft the rental agreement, you need to do the following

Discuss important matters like rent, security deposit, maintenance charges etc
Prepare a rough draft with details like names of parties involved and address of the property clearly mentioned
Add important clauses to the document
Purchase stamp paper of recommended value, print your draft on the stamp paper. Alternatively, you can use our Rental Agreement Service and we will do it all for you.
Place signatures of both tenant and landlord, in the presence of two witnesses
Register the deed at local Sub-Registrar office
Stamp Duty & Registration

Stamp Duty – It is the duty paid to the Government whenever an agreement or transaction is created. Stamp Duty is calculated on the basis of the value of the transaction. It is paid to the Government by purchasing Stamp paper of due value.

There are two kinds of Stamp papers: the traditional Stamp paper and the e-Stamp paper.

Registration

Registration of the lease/rental deed in Delhi has certain procedure that needs to be followed by all.

Charges related to registration:

For a lease up to 4 years, the Stamp paper cost is 2% of the total average annual rent plus Rs.100 for the security deposit paid. For Five years to less than ten years – 5% of the value of the average annual rent. For ten years and more to less than twenty years – 5% of double the value of average annual rent
A Demand Draft (DD) of Rs. 1100 needs to be taken for the Registration charges.

DOCUMENTS REQUIRED

Documents to be presented by the Owner for registration:

  1. The original proof of ownership or title to property
  2. 2 passport size photos
  3. Aadhar card or its receipt while applying for it is mandatory
  4. ID proof – driving licence, voter’s ID, passport etc
  5. The rental agreement printed on the Stamp paper
  6. DD of Rs.1100 towards registration charges

Documents to be presented by the Tenant for registration:

  1. 2 passport size photos
  2. Aadhar card or the receipt received while applying for it, if the person is an Indian. If the person is a foreigner, then original passport is needed.
  3. If the tenant is a company, then the person coming for the registration should bring a board resolution/ authorisation letter from the company mentioning the person’s right to register the lease, along with the company seal.
  4. If one person represents the another person for the registration, then the Power of Attorney deed should be brought.

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