Rent Agreements

Key Information Regarding Rent Agreement Registration

Below is an overview of the procedure and the role of the SDM:

1. The Legal Obligation for Registration

Mandatory: In accordance with the Registration Act of 1908, any lease (or rent) agreement lasting more than twelve months must be registered without exception.

Common Practice: For agreements lasting 11 months or less (often referred to as a Leave and License Agreement in certain states), registration is not compulsory but is strongly advised for legal enforceability. Many individuals choose 11-month agreements to circumvent the obligatory registration and the increased stamp duty that comes with longer leases.

2. The Function of the SDM/Sub-Registrar

This office oversees the legal procedure that renders the agreement valid as evidence in a court of law. The actions undertaken by the Sub-Registrar (who may also serve as the SDM) include:

Verification of Execution: Confirming that both the landlord and tenant are present, mentally competent, and willingly acknowledge the execution of the agreement.

Biometric Authentication: Collecting photographs and fingerprints from all involved parties (landlord, tenant, and witnesses).

Document Examination: Verifying identity proofs, ownership documents, and ensuring that the document is printed on the appropriate Stamp Paper (or e-stamp) of the required value according to state regulations.

Record Maintenance: Formally registering the document, assigning it a unique registration number, and storing a copy in government archives.

3. Procedure for Registration

 

The registration process requires the physical presence of the parties at the Sub-Registrar Office (SRO), which often falls under the administrative control of the SDM’s division.

  1. Drafting: Prepare the rent agreement document clearly stating all terms, rent, security deposit, and tenure.

  2. Stamp Duty: Pay the required Stamp Duty on the agreement. This is typically done through an e-stamp paper/certificate. The stamp duty varies by state and depends on the lease tenure.

  3. Appointment: Schedule an appointment online (in states like Delhi) with the relevant SRO/Sub-Registrar (SDM) based on the property’s location.

  4. Submission: On the appointed date, the landlord, tenant, and two witnesses must appear with the printed agreement and all required documents (ID proofs, address proofs, ownership papers, and passport-size photos).

  5. Authentication: The Sub-Registrar (SDM) verifies the documents, and all parties complete the necessary biometric and signature authentication.

  6. Fees: Pay the statutory Registration Fee (which is separate from Stamp Duty).

The final registered agreement is then either collected physically or downloaded from the official portal.