Registered Rent Agreement या Notarized - क्या सही रहेगा? - YouTube

Press the bell icon while subscribing to the channel

So that you will get the notification of the latest finance video.

Namaskar, my name is Mukul and you are welcome to the Asset Yogi

Most of us sign a rent agreement at some point or another

Whether as a landlord or as a tenant

A question arises whenever we sign a rent agreement

Whether we leave it as it is, the owner and tenant have signed it

We all know that if there is a legally binding agreement

And two parties have agreed to that then that agreement becomes valid

All of you know that.

The second option that is suggested to us is to get it notarized.

What are the advantages and disadvantages of getting it notarized? We will talk about it

The third option that we have heard is that you can get the agreement registered

In the sub registrar's office.

And most people do not get the agreement registered

Because in that, stamp duty and registration charges are charged.

The charges are a bit higher than getting it notarized.

What does our law say about this?

What type of agreement can be notarized?

What type of agreement has to be registered compulsorily?

We will talk about this in this video.

What are the benefits and disadvantages of both types of agreement?

And if you want to get register your document

Then what will be the expense of its registration charges and stamp duty?

We will also see that.

I will take the example of Delhi. So keep watching this video.

Music

Firstly let's understand

What is the rent agreement?

A rent agreement is a legal contract

Which is signed between the property owner and tenant.

In that, all the details of the property are written.

Address, location, etc

What is its size?

Where is the property located?

And then the details of the owner and the tenant come under that

And then the terms and conditions are written

What will be the monthly rent?

How much will be its annual increase?

What type of maintenance charges will be and who will pay them?

Who will pay the electricity and the water charges?

And if there is a rent default then what will happen in that case?

So all these terms and conditions are written. In fact, I have made a video about this

You can watch my video on the rent agreement, how you should

draft a proper rent agreement. So now you have drafted a rent agreement

Now we have the remaining three options. We will discuss them.

The first option that you have is you both have signed and you leave it as it is

And you have kept one copy as an owner

And you've given one copy to the tenant. But in this case,

No third party is involved.

If you get it notarized then the public notary verifies both parties.

All the details are written on the register and put the date

If there occur some dispute of any type then you can

Say it in court that there is a notarized document

And the court can call the notary also.

Now the question that arises here is that

What type of document should you get notarized?

If your rental agreement is for 11 months, then you can get it notarized

That is valid. In fact, we will see the clauses according to Registration Act 1908

Or if your lease agreement is for 12 months or more

Then you have to get it registered.

I will show you the clauses quickly that what our Registration Act says.

First of all, we will see Section 17

of the Registration Act 1908

It is given in this that document of which registration is compulsory

If you see in subsection 1 then you will get all the documents.

Following documents shall be registered.

So all these documents are given here.

And if you come in Subsection D, then you will know that

What is the period over which the least deed will exceed

Then it will be compulsory for you to get it registered.

Leases of immovable property from year to year

This means the lease which is renewed year by year

Or that lease whose term means its period

is more than a year

I will highlight it a bit. If the period of any lease is more than 12 months.

Then it is compulsory to get it registered.

And along with that, if in any lease the rent is collected

for more than a year whether as a security deposit

or directly as rent.

Then its registration is also compulsory.

So you have understood this thing that if the lease period

is more than 12 months then you should get it registered.

Now we will see Section 49

If there is a document which you are told to get registered

And if you don't get it registered then what will happen

See it is clearly mentioned in this section,

No document is required by Section 17

to be registered shall be received as evidence

of any transaction affecting such property

or conferring such power unless it has been registered.

This means a document which you have to compulsorily register under Section 17

Like your lease agreement for more than 12 months

If that is not registered

So in that case, it cannot be produced as evidence in court

So to summarise, we can say

Unregistered lease agreements of more than 12 months period

are not valid as evidence in court.

That's why if you have an agreement for more than 12 months

Then it is compulsory to get it registered.

So we have understood if we are signing a lease for a long time

12 months or more than that

Then it is necessary for us to get the document registered

Many people try to avoid this registration fee

See, if you are getting a lease of 2 years, 3 years, or 4 years

Then the registration charges are not much

I will show you a quick calculation

We will take an example of Delhi

We will take an example of a 3-year lease

And we will see what the actual charges are.

We will take the example of Delhi, we will see how much is the lease period and stamp duty.

If the lease period is less than 5 years then 2% of the 12-month average rent

This is a stamp duty charge and registration charges are separate from this.

Now, how we will see this 12-month average rent. We will see its calculation.

For 5 to 10 years, the stamp duty is 3% of the 12-month average rent

And for the 10 to 20 years, the stamp duty is 6% of the 12-month average rent

Registration charges are extra which is 1000 Rs

And other than that you have to give pasting charges of 100 Rs

Now let's take an example. Assume a lease of 3 years is signed.

So how will you do its calculation? Assume the average rent for the first year is

18000 Rs per month. In the second year, your monthly rent is let's say

19, no we will take 20 here.

We will consider an increase of approximately 10%. We will consider it 20000 Rs per month.

And in the third year, your rent would be 22000 Rs per month

So see, what is your average rent here?

The average rent would be 20000 Rs per month

So if we calculate the average month of 12 months

Then we will multiply it by 12. So if you multiply 20000 by 12

Then your rent would be 2,40,000 Rs

This is the average rent of the year.

So the stamp duty you have to collect is according to the 2%

Because the lease period is less than 5 years. So if you do 2%×240000

So it will be 4800 Rs

So this is your stamp duty.

Other than this, you have to pay the registration charges

Registration charges are 1000 Rs. Other than this you have to

pay pasting charges which are 100 Rs. So if you add these

Then it will be Rs 5,900 in total

Stamp duty & registration charges

Other than that, if you contact any lawyer

Then he will charge you some legal fees

Let's say we will consider

He will charge approximately 2100 Rs to make it a round figure

So your total expense of stamp duty and registration charges

will be approx 8000 Rs

So in this way, you can calculate your

stamp duty and registration charges in Delhi.

It depends mainly on your rent whether it is your residential property or commercial property

Similarly, you can calculate the stamp duty

in other states too.

In fact, calculators are available online on government websites.

I will show you quickly about Delhi. Similarly, you check about other states too

So see, if you type stamp duty calculator Delhi

on Google. Then you have to click on the very first result.

doris.delhigov.nic.in

You will go on that and then you have to click on the second option

to calculate the stamp duty. We will click on the evaluation

Firstly you will select your sub-registrar

Whoever is the sub-registrar of your area. I will select southwest for example

Locality, let's say we will select Dwarka Sector 10

You will select the deed which you want to calculate.

So we will select a lease in our case.

Sub deed name, we will select lease up to 5 years

We will take the same example and we will calculate for the lease of 3 years.

We will submit it. So you have to enter all the other details.

Let's say, select any gender male or female.

You will put your deed amount.

So pay attention to the deed amount

You have to put monthly rental, average monthly rental

So you will put whatever the average monthly rent is for 3 years

So ours was 20000 Rs

So I have put that here. After that, see, it will give you the calculated stamp duty

So your stamp duty is 4800 Rs

Registration fees are Rs 1000 as we have seen

Pasting charges are 100 Rs. So the total amount is 5900 Rs

Plus whatever your legal fees will be

So in this way, you can calculate this online in Delhi

You can also calculate online in other states too

Nowadays, online calculators are available in all the states

In fact, I have made videos on many of them. You can watch them.

As we have seen that if your period is long, then the charges are not too much

In fact, they make you safe.

So I am not saying that if you have signed an agreement

So it has no legal validity. It's not like that

Two people have signed an agreement

So the court will see that agreement in one form or the other.

But as we have seen as per the Registration Act 1908

It will not be considered as evidence as a rent agreement

in any type of dispute. And in these cases

Mostly the bias is towards the tenant

So if the landlord wants to evict his tenant

If he wants to throw him out for some reason then it becomes very difficult.

That's why if your lease period is long if that is more than 12 months

Then get it registered.

You can notarize your 11-month rent agreement

They are legally valid. You have got the information in this video which can be useful for you.

If you liked this video then like and share

Many people are signing the rent agreement around you then suggest this video to them.

If you have suggestions related to this video or the channel

Then you can comment below.

I read all your comments daily so tell me how you like the channel and how the video was.

Or if you want to suggest any topic then you can comment in the comment section.

If you haven't subscribed to the channel yet then subscribe and press the bell icon

Because I keep coming with these types of finance-related informative videos

So you will get the notification

So let's meet in the next informative video

Till then keep learning, keep earning

And be happy as always.