LEASE DEED REGISTRATION
A Lease Deed / Rent agreement is a contract wherein the lessee (tenant) agrees to pay a periodic sum of money (rent) to the lessor for the use of an immovable property. A lease deed is generally written whenever an owner gives his property to a tenant on rent for a certain period of time. A lease agreement may be made in respect of a Shop, Office, Flat, Apartment, Builder Floor, Bungalow, Unit in a Commercial Tower or Mall, Industrial Site, farm houses, agricultural lands etc.
How our company can help in the Registration of Lease Agreement :
1. Our legal experts will draft / review your Lease Deed.
2. We will purchase the e-Stamp Paper.
3. We will take the date for the registration of lease in the Sub Registrar office.
4. We will pay the Government registration fee.
5. We will facilitate the registration process at the Sub registrar office.
6. We will collect the registered Lease Deed from the Sub Registrar office.
According to Section 105 of the Transfer of Property Act, 1872, a lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent.A lease of an immovable property from year to year, or for any term exceeding one year or reserving a yearly rent, can be made only by a registered instrument. Therefore, it is compulsory to get a lease / rent deed registered in the sub registrar office if the lease is for a term of 1 year or more.
All other lease of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession.Where a lease of immovable property is made by a registered instrument, such instrument shall be executed by both the lessor and the lessee.
As per latest notification of the Govt. of India, it is now compulsory for the Embassies, High Commissions, Ambassadors, Consulates, Foreign Citizens and Foreign Nationals staying in properties in Delhi to get the Lease Agreement / Rent Deed registered as soon as possible.
Important points to note in relation to registration of Lease Agreement in Delhi are :
1. Stamp duty is payable @ 2% of the average annual rent in the case of lease agreements for a term upto 5 years and @ 3% of the average annual rent in case of agreements for a term greater than 5 years, but upto 10 years.
2. Registration fee is payable through a Bank Pay order.
3. Both the Lessor / Landlord(s) and Lessee / Tenant(s) have to present themselves before the Sub Registrar for the execution and registration of the Lease Agreement alongwith their two passport size photographs and identification documents such as Aadhaar Card, Voter ID Card, Passport etc.
4. The Presence of two witnesses alongwith identification documents such as Aadhar Card etc is also required in the Sub Registrar Office.
Cost Involved in Registration of Lease Deed in Delhi:
The below table provides the approximate total expenditure involved in the registration of lease deeds for terms of 3 years, 6 years and 9 years for different monthly rates:-
Monthly Rent 3 years 6 years 9 years
Rs. 50,000 Rs.17,000-Rs.19,000 Rs.25,000-Rs.27,000 Rs.27,000-Rs.30,000
Rs. 2,00,000 Rs.55,000-Rs.58,000 Rs.74,000-Rs.77,000 Rs.90,000-Rs.95,000
Rs. 5,00,000 Rs.1,27,000-Rs.1,30,000 Rs.2,00,000-Rs.2,07,000 Rs.2,10,000-Rs.2,22,000
Lease Deed registration in Delhi
We provide services for Drafting & registration of Lease Agreement all over Delhi.
FAQs on Registration of Lease Deed in Delhi
Q. Is it compulsory to get the lease deed registered?
A. It is compulsory to get the lease registered if its term exceeds one year. However, even in case of lease deeds for 11 months, it is always in the interest of the parties to get it registered in the Sub Registrar Office.
Q. Can Rental agreement be registered by paying a stamp duty of Rs.50 or Rs.100?
A. No, the Rental agreement can be registered only after purchasing the E-Stamp Paper for the correct Stamp Duty amount.
Q. What is the Rate of Stamp Duty payable on a Lease Agreement?
A. Stamp Duty is payable @ 2% of the average annual rent for lease upto a term of 5 years and @ 3% of the average annual rent for lease for a term greater than 5 years but upto 10 years.
Q. What is the Registration Fee for registration of Lease agreement?
A. The registration fee of Rs.1,100/- is payable for the registration of a Rent agreement irrespective of the amount of rent.
Q. Can lease deed be registered online?
A. No, it is not possible to get a Lease agreement registered online. Both the parties need to visit the Sub Registrar office to get it registered.
Q. Where should I get the Lease Deed registered ?
A. The lease deed should be registered in the office of the Sub-Registrar having jurisdiction over the area in which the property is situated.
Q. Can the deed be registered in the absence of the landlord?
A. The landlord will have to visit the registrar office for the registration of Lease Deed. This cannot be avoided.
Q. Can lease agreement be registered for leasehold properties?
A. Yes, lease agreement can be legally registered for lease hold properties as well. You may contact us for more details.
Q. For what all purposes is registered Lease Deed required?
A. A registered Lease agreement / deed is required as proof of address / residence in case of application for Passport, Bank Account, Telephone / Mobile Connection, Admission of children in School etc.
Q. Can lease deed be registered for properties located in commercial towers and complexes on the basis of unregistered builder buyer agreement / sale agreement / power of attorney?
A. Yes, a lease deed can even be registered on the basis of unregistered Builder Buyer Agreement or Agreement to Sell. You may contact us for more information.
Q. The property that I have taken on lease is jointly owned by two persons. Will both the owners have to visit the sub registrar for the registration of lease deed or only one person will be sufficient?
A. Yes, both the joint owners/landlords will have to personally visit the sub registrar office for the registration.
Important Clauses in a Lease Agreement:
Some of the common points that are to be considered while drafting a Lease Deed / Rent Agreement are as follows:
• Description of the Parties to the lease
• Term of the Lease
• Monthly Rent payable
• Date and mode by which the rent is payable
• Purpose of lease – whether for residential or commercial purpose
• Security deposit and the interest to be paid on it, if any
• Additional Facilities provided by the Lessor
• Monthly maintenance charges and who bears it
• Other charges such as tax and parking fee, and who pays them
• Access to common terrace and common areas
• Whether the lessee can sub-lease
• Indemnity Provisions
• Grounds for termination of the agreement
• Fixtures and fittings provided by the lessor and their maintenance
• Rent escalation clause specifying when the rent can be increased and at what rate
• Who will bear the routine repair and maintenance expenses of the house or flat – both minor and major repairs
• In case the lease deed needs to be registered, distribution of the stamp duty and registration expenses
• Notice period that needs to be given by either party to terminate the lease
Some important Judgements
• It was held in Nilkantha Pati v. Khitish Chandra, (1951) AIR Cal 338, that where the lessee loses possession of any portion of the property due to any act or default on part of the lessor, the lessee can suspend payment of rent till restoration of the possession.
• The Supreme Court held in Dashrath v. Kashinath, (1993) AIR SC 2646, that where the premises were used by the tenant for doing business of a different kind from what was permitted under the lease agreement, in violation of the conditions of the lease, the tenant was liable to be evicted on that ground.
• As per recent orders of FRRO & Govt. of India, it is now mandatory for the Embassies, High Commissions, Ambassadors, Consulates, Foreign Citizens and Foreign Nationals to get the Rent Deed registered in Delhi within 4 months time from the date of execution of Rent/Lease Deed.