[ecis2016.org] Here are the details of how to register a rent agreement in Gurgaon
Gurgaon, arguably, is the most sought-after employment hub in the National Capital Region. This fuels the demand for rental homes in Gurgaon, now formally known as Gurugram. It also makes it important for the landlords and the tenants to know the nitty-gritties of rent agreement drafting in Gurgaon and registration of the rent agreement in the city.
You are reading: Rent agreement in Gurgaon
When do you need to register a rent agreement in Gurgaon?
Tenants drafting a rent agreement for a tenancy period exceeding 11 months, need to get the rent agreement registered with the sub-registrar’s office. This is the singular reason for which most rent agreements in Gurgaon are drafted for an 11-month period.
Rent agreements with tenancy duration of 11 months qualify to be leave-and-licence agreements and not lease agreements. A tenant is not legally obliged to register such an agreement.
Under Section 17 of the Registration Act, 1908, annual registration of leases of immovable property, or for any term exceeding or reserving a yearly rent, is mandatory. A leave-and-license agreement is governed by the Indian Easement Act, 1882 and is different from a rental or lease agreement. Owing to the period involved, Section 17 of the Registration Act is not applicable on rent agreements drafted for 11 months.
Rent agreements under the provisions of The Indian Easements Act, 1882, have no validity under the rent control laws. This means, rent agreements of 11 months in Gurgaon will not be controlled under the provisions of the Haryana Urban Tenancy Act, 2018.
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What is the process of making a rent agreement in Gurgaon?
Draft the rent agreement
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The tenant and the landlord must reach a verbal agreement about the future tenancy, in order to draft a sample rent agreement and start the formalisation of the tenancy process. The rent agreement must clearly mention all the details about the landlord, the tenant, the tenancy period, the monthly rent, the security deposit and other mutually-agreed upon terms and conditions. It must be noted here that unless something is clearly stated in the rent agreement, it has no legal sanctity even if the tenant and the landlord reach a verbal agreement on the subject.
Buy non-judicial e-stamp paper of relevant value
Since one has to pay the stamp duty and registration charges, in order to get the rent agreement registered in the government’s records of Gurgaon, they must buy e-stamp papers of the required value. (We will discuss the stamp duty and registration charges on rent agreement in Gurgaon in subsequent sections of this article.) The tenant and the landlord have the option to either buy the stamp papers physically or buy e-stamps. You can buy the physical stamps and e-stamps from the e-stamping vendors.
Go for registration
Visit the sub-registrar’s office to register the rent agreement in Gurgaon.
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Rent agreement process in Gurgaon: Key questions
Is rent agreement mandatory in Gurgaon?
The Registration Act of 1908 mandates registration of a lease agreement if the tenancy exceeds 11 months.
What documents do I need to register a rent agreement in Gurgaon?
- Original and copies of the identity proof of the tenant and the landlord.
- Original and copies of the address proof of the tenant and the landlord.
- Demand draft towards registration charges.
- Two passport-size photographs of the landlord and the tenant.
Note: Aadhaar card, Voter ID card, driving licence and passport act as ID card, as well as valid address proofs.
In case of lease/rent deed, who has to pay stamp duty and registration charges in Gurgaon?
In case you have to register the lease/rent deed in Gurgaon, the responsibility to pay the charges would fall on the lessee, i.e., the tenant.
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What is the cost of rent agreement registration in Gurgaon?
Stamp duty on rent agreement (lease) registration in Gurgaon
| Tenancy period | Stamp duty charges |
| Up to 5 years | 1.5% of one-year average rent. |
| 5 to 10 years | 3% of one-year average rent. |
| 10 to 20 years | 3% for consideration equal to twice the amount of the average annual rent reserved. |
| 20 to 30 years | 3% for consideration equal to three times the amount of the average annual rent reserved. |
| 30 to 100 years | 3% for consideration equal to four times the amount of the average annual rent reserved. |
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Registration charges for rent agreement (lease) registration in Gurgaon
A tenant is required to pay the registration charge to register the document. Mentioned below are the rent agreement registration charges in Gurgaon:
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| Rental value | Registration charges |
| Re 1 to Rs 50,000 | Rs 100 |
| Rs 50,001 to Rs 1,00,000 | Rs 500 |
| Rs 1,00,001 to Rs 5,00,000 | Rs 1,000 |
| Rs 5,00,001 to Rs 10,00,000 | Rs 5,000 |
| Rs 10,00,001 to Rs 20,00,000 | Rs 10,000 |
| Rs 20,00,001 to Rs 25,00,000 | Rs 12,500 |
| Rs 25 lakhs to Rs 30 lakhs | Rs 15,000 |
| Rs 31 lakhs to Rs 40 lakhs | Rs 20,000 |
| Rs 41 lakhs to Rs 50 lakhs | Rs 25,000 |
| Rs 51 lakhs to Rs 60 lakhs | Rs 30,000 |
| Rs 61 lakhs to Rs 70 lakhs | Rs 35,000 |
| Rs 71 lakhs to Rs 80 lakhs | Rs 40,000 |
| Rs 81 lakhs to Rs 90 lakhs | Rs 45,000 |
| Rs 91 lakhs and above | Rs 50,000 |
Source: jamabandi.nic.in
Online rent agreement facility at ecis2016.org
ecis2016.org, India’s leading real estate advisory company, allows landlords and tenants to create online rent agreements. ecis2016.org’s contact-less, hassle-free and cost-effective rent agreement facility is available in more than 250 cities in India.
Benefits of online registration of rent agreement in Gurgaon
- Online rent agreements eliminate the necessity to physically draft rent agreements, an advantage in the current climate.
- You get access to the standard rent agreement sample format, which helps to avoid any errors.
- You can insert customised terms and conditions, as per your requirement.
- A paperless way to execute rent agreements, online drafting is both hassle-free and affordable, as the platforms only charge a nominal fee for the service.
Important clauses in rent agreements
For the safety of both, the tenant and the landlord, the rent agreement must clearly mention the details mentioned below:
- Roles and responsibilities of the tenant and the landlord.
- Tenancy period.
- Maintenance charges.
- Rent amount.
- Security deposit.
- Rent revision.
- Terms of eviction.
- Payment of bills and other charges.
- Termination clause.
- Renewal criteria.
- List of fittings and fixtures.
- Registration of agreement.
- Restrictions.
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FAQs
Who pays the stamp duty when a rent agreement is registered?
The tenant pays the stamp duty when a rent agreement is registered in Gurgaon.
Will the Model Tenancy Act regulate rent agreements?
All rents agreements that are drafted for a period exceeding 11 months will be regulated under the Model Tenancy Act that is now being implemented by states in India.
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