What is Rent Agreement?

A rent/lease agreement is the legally binding document that establishes a contractual arrangement between the tenant and the property owner. A rent agreement, also known as a lease agreement, is a legal document between a landlord and a tenant that specifies the terms and conditions for renting a property. It includes details such as the parties involved, property description, rent amount and payment terms, security deposit, duration of tenancy, responsibilities for utilities and maintenance, usage rules, termination conditions, and legal provisions. This document ensures clarity and protection of rights for both parties involved in the rental transaction.

It encompasses several terms and conditions, including:

1. Property specifics
2. Monthly rental and security deposit particulars
3. Duration of the tenancy
4. Penalties for late payment of rent
5. Inclusive charges such as electricity, water, parking, repairs, etc.
6. Notice period for property vacation

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Importance of Registering Rent Agreement

Registering a rental agreement is crucial for both parties involved, serving as critical evidence in case of disputes between tenants and landlords. According to Section 55 of the Maharashtra Rent Control Act 1999, a rental agreement can be executed either as a Notarized Agreement or a Registered Agreement. Notarized agreements, which are signed by a lawyer on stamp paper, serve for document verification but may not be admissible in courts during disputes. In contrast, registered agreements, printed on stamp paper and registered at the sub-registrar’s office, are stored in the government database, providing easy online access and holding legal validity as proof. It is recommended to opt for registration at the sub-registrar’s office, a process available both online and offline throughout Maharashtra.

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What Is the Duration of The Rental Agreement?

The rental agreement may extend for a maximum period of five years. However, if the lease duration exceeds eleven months, it becomes essential to register the rental agreement. To circumvent applicable stamp duty and registration charges, many individuals limit the leasing period to eleven months.

It is important to note that there is no obligatory requirement to restrict the agreement duration to eleven months. Conversely, opting for longer durations can prove advantageous for both landlords and tenants.

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How To Register the Rent Agreement in Maharashtra?

The registration process for a rental agreement is straightforward. However, for convenience, the IGR department in Maharashtra offers two registration options: physical registration or online registration.

In both options, it is essential to complete the biometrics or obtain signatures from the landlord, tenant, and two witnesses.

Steps for Physical Registration of Rent Agreement:

1. Draft the rent agreement, including the terms and conditions, preferably with the assistance of a lawyer
2. Print the drafted agreement on stamp paper
3. Visit the sub-register office along with all involved parties. Here is list of all sub-registrar offices in Pune
4. Pay the necessary registration charges and stamp duty fees to complete the registration process at the sub-registrar office
5. Both the tenant and landlord must sign the rent agreement in the presence of witnesses and the sub-registrar

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Steps for Online Registration of Rent Agreement:

1. Visit the official website: https://efilingigr.maharashtra.gov.in/ereg/
2. Choose the district of the property, capture thumb impressions using a thumb scanner, create a password, and proceed to the next step.
3. Input property, tenant, landlord, and witness details on subsequent pages.
4. Enter rental details and make online payments for stamp duty and registration charges to generate the document.
5. After reviewing all details in the generated document, capture photos and thumb impressions of all parties for verification.
6. Input Aadhar details for all parties and click on the ‘Verify KYC’ button.
7. Once verified, view the PDF version of the document and submit it after confirming accuracy.
8. Upon submission, receive a Token Key that can be utilized to download the agreement and payment slips.

Note: An online webcam and a registered biometric device are essential for this process.

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Cost of a registered rent agreement in Maharashtra

The cost of a registered rent agreement in Maharashtra comprises:

1. 0.25% of the consideration value.
2. Registration charges, which are INR 1000 for urban areas and INR 500 for rural areas.

The stamp duty for rent agreement registration in Maharashtra is regulated by the Bombay Stamp Act, 1958. It is mandated to be stamped at a fixed charge of 0.25 percent of the total rent for the specified duration.

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What if the owner and tenants are in different locations?

In the event that the owner and tenants are in different locations, the rent agreement can still be executed using Aadhaar authentication.

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Documents Needed for Rent Agreement Registration in Maharashtra:

For Physical Registration:

• Proof of original property ownership.
• Address proof copies for the landlord, tenant, and two witnesses (e.g., Aadhar card, Ration Card).
• Two passport-size photographs of both the tenant and landlord.
• One passport-size photograph for each witness.

For Online Registration:

• Aadhar copies of the owner, tenant, and two witnesses
• Light bill or index 2 of the property
• Power of Attorney (POA) document if the registration is done through POA

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