Number of occupants: The agreement must indicate what happens if your family members come to see you in the future. Maintenance: The contract must clearly state who must pay the monthly maintenance fee. If the term of the lease is increased to one year or more, the parties involved in the transaction must pay stamp duty and registration fees. Under Section 17 of the Registration Act, 1908, registration of real estate leases is mandatory from year to year or for a period in excess of or maintaining an annual rent. This section will therefore apply to one-year leases, which will significantly increase rental costs. In such cases, the tenant must bear stamp duty and registration fees. Repairs: The agreement must mention who bears the costs associated with wear and tear. Under Delhi`s Rent Control Act, for example, landlords can increase their rent by 10 percent after three years – the common practice is to increase rent by 10% each year. When reconstituting the unit with the prior permission of the tenants, landlords can increase the rent amount by up to 15 per cent of the cost of the supplements made in the property. If you have ever rented a property or lived in a rented house, you must have signed a rental agreement. Have you ever wondered why most leases are valid for 11 months? Often, neither landlords nor tenants nor even real estate agents know why. Let`s see.
Note here that notarized certified rentals are not identical to registered documents. In the event of a dispute between the landlord and the tenant, the court will not accept a notarized agreement as proof. It is therefore important to register the rental agreement correctly. Most leases are signed for 11 months so they can avoid stamp duty and other fees. Under the Registration Act of 1908, registration of a lease is mandatory if the tenancy period is more than 12 months. If an agreement is registered, stamp duty and registration tax must be paid. For example, in Delhi, for a lease of up to five years, stamp paper costs 2% of the total annual rent of one year. Add a flat fee of Rs100 if a security deposit is part of the agreement. For a lease of more than 5 years but less than 10 years, it represents 3% of the value of the average annual rent for a year. For 10 years and more, but less than 20 years, it is 6% of the value of the average annual rent of a year.
The stamp paper may be in the name of the tenant or landlord.