Stamp duty payment:
The first step is to pay stamp duty on the rental agreement. The stamp duty amount is determined by the state government and varies depending on the location, duration, and rent amount of the agreement. The stamp duty can be paid either online or through authorized stamp vendors.
Registration:
After paying the stamp duty, the rental agreement can be registered at the local Sub-Registrar’s office or the office of the Registrar of Assurances. Both the landlord and the tenant must be present at the time of registration, along with two witnesses who can attest to their identities.
Document submission:
The rental agreement must be submitted along with the stamp duty receipt, ID proof of both parties, and two passport-size photographs of each party and the witnesses.
Verification and registration:
The Sub-Registrar or Registrar will verify the documents and may ask for additional information or documents. After verification, the rental agreement will be registered and a copy will be provided to both the landlord and the tenant.
The cost of registering a rental agreement includes the stamp duty, registration fees, and any other charges or taxes imposed by the state government. The registration fees are typically a percentage of the rent amount or the property value, depending on the state. 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 registered and complies with all legal requirements.
Stamp Duty in Tamilnadu
In Tamil Nadu, the stamp duty cost for registering a rental agreement depends on the annual rental value or the lease amount, whichever is higher. The stamp duty rates for rental agreements in Tamil Nadu are as follows:
- For a lease period of less than one year: Stamp duty is 1% of the annual rental value or lease amount, whichever is higher.
- For a lease period of one year or more but less than three years: Stamp duty is 2% of the annual rental value or lease amount, whichever is higher.
- For a lease period of three years or more but less than five years: Stamp duty is 4% of the annual rental value or lease amount, whichever is higher.
- For a lease period of five years or more but less than ten years: Stamp duty is 5% of the annual rental value or lease amount, whichever is higher.
- For a lease period of ten years or more: Stamp duty is 6% of the annual rental value or lease amount, whichever is higher.
It is important to note that the stamp duty rates for rental agreements in Tamil Nadu are subject to change, and it is advisable to check the latest rates with the local Sub-Registrar’s office or consult with a good civil lawyer.