Rent Agreement

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Rent Agreement


What is Rent Agreement?

A lease agreement is a contract that is signed between the landlord and the tenant whereby the landlord gives the tenant the permission to reside in his residential premises.

The Orissa House Rent Control Act, 1967, is the primary law that governs the setting up of a rental agreement in Orissa.



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What all documents are required to make Rent Agreement online?

In order to make a rent agreement and get it registered, you need to have a copy of the address proof of both tenant and owner along with the witnesses. You may show any of these proofs listed here: Bank Passbook, Aadhar Card, Passport, Ration Card and Driving License as address proof.

What are the different types of Rent Agreements?

There are mainly two types of rent agreements available in India:
  • Lease Agreement:

    A lease agreement is an agreement that gives the tenant an exclusive possession of the property for a pre-defined time period. This type of agreement also gives the power to the tenant to make changes to the property unless specified.

  • Leave and License Agreement:

    Under this type of agreement, the possession of the property and the legal ownership remains with the licensor. In other words, with this type of agreement, a tenant doesn’t have much control over the property.

What are important things to include/check in a Rent Agreement?

One can personalise their lease agreement by adding necessary provisions. But few clauses are to be mandatorily included to avoid any uncertainty in the future. Those are as follows:

  • Accurate details: The details that are given in the rental agreement about the landlord, the tenant and the property to be rented should be best to the ability of both the landlord and the tenant.
  • Lock in period: This is the minimum period before which neither the landlord nor the tenant is allowed to withdraw the rental agreement.
  • Notice period: Notice period is a particular period before which the tenant has to inform the landlord about the termination of the lease agreement.
  • Security deposit: The landlord applies to pay the entire security deposit back to the tenant when the agreement expires. Security deposit serves as a protect to the landlord if the tenant breaks or violates the terms of the agreement.
  • Penalty: The landlord can impose a particular amount as a penalty on the tenant if the rent is not paid within the specified time.
  • Rent: The rent to be paid should be mentioned in the agreement. This ensures that the landlord will not unethically increase the rent in the middle of your stay.
  • Maintenance charges: Maintenance costs are to be paid by the landlord. If the tenant pays it, then he has the right to claim it back.
  • Pets: The landlord can specify in the agreement whether he entertains pets inside the premises.
  • Parking: The agreement should mention if the landlord provides parking facilities to the tenant.

How much stamp duty is payable on Rent Agreements?

The stamp duty payable on rent agreement is calculated on the basis of various factors, such as monthly rent, advance deposit paid, number of years of the agreement, etc.

Is Rent Agreement registration mandatory?

As stated in the Registration Act, 1908 it is mandatory to register a rental or lease agreement which is made for the period of 12 months or more.

Why Rent Agreement is generally prepared for 11 months?

In order to save on the stamp duty and registration charges, some owners make the agreement for the tenure of 11 months. However, it remains valid in the eye of law and can be presented in the court as an evidence.