Is registration of the rental contract mandatory?

NEW DELHI: The trend of a rented life has flourished at its zenith in urban areas of India. With an increase in educational and employment opportunities, more and more people are looking for rented accommodation more than ever.

So, while searching or living in a rented house or on an apartment, do you know the rental contract record? You've done it? What are the conditions? And the most important; Is it essential to register a rental contract?

Registration of a rental agreement

According to Section 17 of the Registration Act of 1908, it is essential to register for leases and rentals of real estate from one year to another or for any term beyond one year.

This implies that if your lease is more than one year old, you must register it. For rental agreements of less than one year, only the stamp duty applies, since registration is not mandatory.

Is it necessary to register a rental contract?

Apparently, it is imperative to register your rental agreement (for more than one year). The Registration Act of India is associable to all of India, which means that any real estate agreement (which exceeds the period of one year) is basically required to register instantly.

In addition, only the registered lease agreement can be used as evidence in court in case of any litigation.

Is there a penalty for not registering the rental agreement?

Yes, if you do not register the rental agreement with the authorities in any way, you may end up paying 10 times the original amount (plus pending registration fees and stamp fees) as a fine.

Where to go to register a rental contract?

To register your rental agreement, you must visit the under-registration office in your locality or city. It should be noted that both the tenant and the owner must be physically present for the registration process together with the witnesses. Prior to this, you would need your rental agreement to be printed on a stamp paper.

Documents required for the rental contract registration

  • Proof of original property or evidence
  • The original title of the property.
  • Road map of the leased property
  • Proof of address of the owner, tenant and witnesses
  • For proof of address, any of the documents such as driving license, bank book, passport, ration card and Aadhar card is valid
  • Two passport-sized photographs of the landlord and the tenant.
  • A passport-sized photograph of each witness

Rental contract registration fees

Generally, Rs 1100 is the charge to pay for registering a rental agreement apart from the rental amount or the value of the property.