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How Rent Agreement Is Made in Delhi

If you`re looking to rent a property in Delhi, one of the most important documents you`ll need to familiarize yourself with is the rent agreement. A rent agreement is a legal document that outlines the terms and conditions of a rental agreement between a landlord and a tenant.

In Delhi, rent agreements are typically drawn up and executed on a stamp paper, which is a special type of paper that has a pre-printed stamp duty on it. The stamp duty is a tax that is levied by the state government on the rental agreement, and it varies depending on the value of the property and the duration of the lease.

To make a rent agreement in Delhi, you`ll need to follow these steps:

1. Draft the agreement

The first step is to draft the rent agreement. The agreement should include details such as the name and address of the landlord and tenant, the duration of the lease, the rent amount, the security deposit, and any other terms and conditions that both parties have agreed to.

2. Print the agreement on stamp paper

Once the agreement has been drafted, it needs to be printed on a stamp paper. The value of the stamp paper depends on the rent amount and the duration of the lease. For example, if the rent is less than Rs. 50,000 per month and the lease duration is less than 11 months, a stamp paper with a value of Rs. 20 is required. If the rent is more than Rs. 50,000 per month or the lease duration is more than 11 months, a stamp paper with a higher value will be required.

3. Get the agreement signed by both parties

Once the agreement has been printed on stamp paper, it needs to be signed by both the landlord and the tenant. The signatures should be witnessed by two witnesses, who should also sign the agreement.

4. Register the agreement

The final step is to register the rent agreement with the Sub-Registrar`s Office. The registration fee is 1% of the total rent for the lease duration, and it needs to be paid by the landlord. Once the agreement has been registered, both parties will receive a copy of the registered agreement.

In conclusion, making a rent agreement in Delhi is a straightforward process, but it requires careful attention to detail. By following the steps outlined above, you can ensure that your rent agreement is legally binding and provides clear and concise terms and conditions for both parties.