- In India, it is not mandatory to register a rental agreement if the term is 11 months or less than that. However, if the rental agreement is for a period of 12 months or more, it has to be registered with the local Sub-Registrar of Assurances under the Registration Act, 1908. This provides legal evidence of the terms and conditions of the agreement and can be used as proof in case of any disputes between the landlord and tenant.
- Additionally, registration of the rental agreement ensures that the terms and conditions mentioned in the agreement are enforceable by law. Proving an unregistered rental agreements in the court of law as an evidence might be tedious, and would create difficulties in case of disputes.
- Registration of the rental agreement requires payment of a registration fee, which varies from state to state. The registration process involves submitting the agreement along with the necessary documents to the local Sub-Registrar of Assurances.
- It is important to note that registration of the rental agreement is not mandatory if the rental period is less than 12 months. However, it is advisable to have a written agreement to avoid any misunderstandings or disputes between the landlord and tenant.
- The process and cost of registering a rental agreement vary depending on the state or union territory where the property is located.
- In general, the cost of registering a rental agreement ranges from 0.5% to 2% of the total rent amount or property value.
It is advisable to consult with a civil lawyer or use a reputable online legal service to ensure that the rental agreement is properly drafted, registered and complies with all legal requirements.