Are you planning to rent a property in Delhi? Well, one of the essential steps that you need to take is to draft a rent agreement. The rent agreement is a legal document that outlines the terms and conditions of the rental agreement between the landlord and tenant. In Delhi, it is mandatory for both parties to register the rent agreement and pay the appropriate fees. In this article, we will discuss the cost of registering a rent agreement in Delhi.
The cost of registering a rent agreement in Delhi varies depending on various factors. The registration fee for a rent agreement is calculated as a percentage of the total annual rent paid by the tenant. The registration fee is usually 1% of the total annual rent. In addition to the registration fee, you will also need to pay stamp duty, which is calculated as a percentage of the total rent paid for the duration of the lease.
The stamp duty in Delhi is 2% of the average annual rent of the property for a lease term of up to five years. For a lease term of more than five years, the stamp duty is 3% of the average annual rent. The stamp duty is payable at the time of registration of the rent agreement.
Apart from the registration fee and stamp duty, you may also need to pay legal fees if you hire a lawyer to draft the rent agreement. The legal fees can vary depending on the complexity of the agreement and the lawyer`s experience.
It is important to note that the tenant and the landlord share the cost of registration. The landlord is responsible for paying the stamp duty, while the tenant is responsible for paying the registration fee. However, the landlord and tenant can mutually agree on the cost-sharing arrangements.
In conclusion, the cost of registering a rent agreement in Delhi varies depending on various factors, including the total annual rent paid, lease term, stamp duty, and legal fees. As a tenant or landlord, you should be aware of the cost implications of registering a rent agreement to avoid surprises. It is recommended to consult a legal expert to ensure that your rent agreement is legally sound and registered correctly.