To give their rental agreement legal validity, a tenant and a landlord sign a contract. The rent agreement is the document that serves this function.

What is a rent agreement?

A rent agreement is a document that is signed between a landlord and a tenant to initiate and govern a tenancy. Rent agreements mention every detail about the two parties — the landlord and the renter, and the terms and conditions of the tenancy. Both parties have to follow the rules mentioned in the rent agreement.

Types Of Rental Agreements

Like in most states in India, Haryana too has three types of rental agreements.

*11- Month Agreement – Such agreements are often signed for residential purposes alone. The duration is typically for 11 months. As its less than a year, most parties skip registration and/or notarization. Such agreements can be renewed with the consent of both parties at the end of the term.

*Commercial Agreement – Signed almost exclusively for business purposes, commercial leases vary greatly in both structure and terms. They are often signed for longer periods of time and the formalities are much different from that for residential leases.

*Long Term Lease – Signed for residential needs, long term leases often quote years as the term of the lease. They involve larger sums of money and do not involve monthly rents in most cases.

Important Clauses to Include In Your Rental Agreement-

Rent, deposit and maintenance charges: These must be discussed in advance and mentioned clearly in the agreement to avoid future confusion.

Permission to keep pets: Some Landlords dislike the idea of animals inside their property. Tenants are advised to discuss this with the owner before you sign the deed.

Consequences of late payments: When the Tenant refuses to make payments on time, the Landlord is free to charge a penalty for each day that the payment was delayed by. This penalty should be spelled out in the contract to ensure that the Tenant is aware of it.

Food habits: Landlords belonging to some religious groups sometimes have difficulties accommodating a Tenant who consumes non- vegetarian food or alcohol or other particular items. If there is a such a condition, the Landlord must make sure that it is included in the deed.

Lock-in period: Lock in period refers to minimum duration in which neither party can terminate the contract.

Overstay: If the Tenant continues to occupy the premises even after the contract term is up, the Landlord may find it difficult to evict such a Tenant. To prevent this, include the overstay clause which will clearly spell out the consequences of overstay.

Drafting the Rental Agreement-

The conventional way to draft a rental agreement would be to approach a lawyer and telling him your requirements. The lawyer would then prepare a rough draft including details of parties involved and the property up for rent. Clauses requested by both parties would be included in the draft and the final version will be reviewed by both Tenant and Landlord.

Stamp Duty & Its Significance

*1.5% of the annual rent+deposit, if the term of the lease is below 5 years.

*3% of the annual rent+deposit, If the term of the lease is 5-10 years.

e-Stamping in Haryana – e-Stamping is a fairly new concept in Haryana. It was introduced recently, March 2015 to be precise. This e-stamping system is yet to replace the conventional stamp papers sold by treasury /banks. This e-stamping system is run by the State Govt. and is different from the one operated by Stock Holding Corporation of India (SHCIL).

Registration & Its Importance

*A registered document will be in the public domain, this means that cases of frauds and forgeries are prevented

*Registration proves that the document was actually prepared and signed by the parties mentioned in it

*Document registrations ensure transparency and clarity of matters

*Once a document is registered, liabilities and debts or other feuds about the property will not be hidden.

In Haryana, the registration charges are as follows –

*INR 5000/- for upto 5 Lakhs

*INR 10000/- for amounts 5-10 Lakhs

*INR 15000/- for amounts 10-25 Lakhs

*INR 25000/- for amounts above 25 lakhs

Documents to be presented by the Owner for registration –

1.Original proof of ownership or title to property

2.Two (2) passport size photos

3.Aadhar card or its receipt while applying for it is mandatory

4.Govt issued ID proof – driving licence, voter’s ID, passport etc.

5.The rental agreement printed on the Stamp paper of due value

Documents to be presented by the Tenant for registration –

1.Two (2)  passport size photos

2.Aadhar card or the receipt received while applying for it, if the person is Indian. If the person is a foreign national, then his/her original passport is required.

3.A board resolution/ authorization letter from the company mentioning the person’s right to register the lease, along with the company seal, if the tenant is a registered Company

4.If one person represents another person for the registration, then a Power of Attorney deed shall be presented.

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