Rent Agreement
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What is a Rent Agreement?
A rent agreement is a written contract between the property owner (the landlord) and the tenant who rents the property. It also contains the terms and conditions under which the property is rented, such as its description (location, kind, and size), monthly rent, security deposit, property’s usage (residential or commercial), and the agreement’s duration. Terms and conditions can be discussed beforehand, but the landlord and the tenant are bound by them once signed. It also lays forth the terms under which the contract can be cancelled.
The lease agreement form, as a legal document, is highly vital. The rent agreement online protects the rights of both parties and prevents future disagreements. During the lease term, there may be various disagreements between the landlord and the tenant. Such disputes could be tackled well through a contract. It offers the landlord’s property security and protects tenants against unreasonable demands.
The rental agreement document also provides the tenant with the ownership of the property for a set length of time. As we all know, verbal agreements are not enforceable by law, and it is usually a good idea to sign a written contract. Another crucial aspect is that it serves as a piece of legal evidence that can be presented for several identity proofs.
Rent agreements can be set for whatever time the parties desire or agree. It can be renewed according to the conditions of the agreement. The rent agreement’s length is usually 11 months, which is to get over the rigorous rental rule which applies to lease agreements of up to 12 months. Also, an important point to remember is that, according to the Registration Act 1908, any property leased to a tenant for more than 11 months must be registered. Hence, a property on the agreement for a few months or less than 11 months does not require registration.
An online rent agreement protects you from misunderstandings, doubts, and disagreements about renting or leasing property. Get into an actual rental or leasing agreement if you want to experience calm and transparency along the way. This agreement contains essential elements, such as property information, rent due, advance deposit, and property-related terms and restrictions.
One must be vigilant about several aspects while signing a rent agreement online, such as the format, registration process, the house rental agreement form, the lease agreement form, the notice period, etc.
This type of legal agreement may appear perplexing at first glance, so here’s a breakdown of the rent and lease agreement form, style, distinctions table, importance, and house rent form, among other things.
Why is Rent Agreement Necessary?
A legally binding and registered rent agreement is necessary for the harmonious relationship between the parties (landlord and the tenant) as it safeguards their rights from fraud, future disregard, doubts, fights, and legal issues. Getting into a genuine and registered rent agreement or lease agreement form helps the owner and the tenant have a more calm, transparent, and formal relationship. The lease agreement form consists of some extremely dominant information like the property’s details, rent you agreed upon, the advance deposit, and restrictions (if any) regarding the property.
To create a rent agreement online or a lease, then it also assures the tenant of the security of living at the property with pre-agreed terms and conditions and all other details without expecting surprises.
Also, the agreement benefits the owner by giving them a certain type of legal hold over the property. Another important advantage of registering a rental agreement is that it serves as legal proof and can protect the landlord in the event of a future legal issue. When a significant asset, such as a residential property, is involved, the landlord requires a document that protects them legally in the event of a future disagreement or resistance from the other party.
Why is it Important to Register a Rent Agreement Online?
A rent agreement can be easily created online on Squareyards.com. One can acquire a quick rent agreement by simply filling out the needed information online. After completion, the online rental agreement document will be mailed to both the landlord and the renter. Both sides must sign the same document.
The online rental agreement process is convenient but also cost-effective and important. Squareyards.com offers flawless online rent agreement registrations and allows both parties to sign the contract digitally. Once all the documents have been uploaded and all other services have been made, the rental agreement document will be prepared online. Now both parties must sign the same. The parties can digitally sign the agreement or have it mailed to them.
The online process of creating the rent agreement removes all the doubts of misinformation or false claims. And this all can happen in just a flash without wasting any time by going to a court and standing in queues to get the stamps etc. One can just sit at home and relax, and squareyards.com will do the rest.
Types of Rent Agreements
When a property is rented, be it commercial or residential, several legal documents such as a rent agreement, lease agreement form, or licencing agreement define the relationship between the landlord and the tenant to curb unnecessary disputes in the future.
So, what does an agreement mean? A lease agreement form is a legal document that spells out the terms and circumstances of a lease or rent partnership between two people, i.e. (the owner and the tenant). There are different agreements for renting or leasing a property, as stated earlier. The rental agreement document comes under the Rent Control Act, and the Leave and License agreement comes under the Indian Easement Act.
An agreement consists of some basic property details, the details of the owner and the tenant, the term of the agreement, and the amount to be paid as rent. The three types of rental agreements are as follows:
Rent Agreement
A rent agreement is a written contract between the property owner (the landlord) and the tenant who rents the property. It contains the terms and conditions under which the property is rented, including its description (location, kind, and size), monthly rent, security deposit, usage (residential or commercial), and agreement duration.
The rent agreement can be acquired for a shorter period of only 11 months. If the agreement exceeds the time of 11 months, then it is necessary to get a registered agreement.
The Transfer of Property Act, Specific Relief Act, Evidence Act, and Registration Act, among others, are significant legislation that governs the tenancy agreement, and one should be thorough with all of these to be on secure ground.
Lease Agreement
A lease agreement is usually for a more extended time than a rent agreement. A lease agreement form is a contract between the landlord and the tenant that grants the tenant the right to use the property for a specified period of time (generally more than 12 months).
This agreement binds the landlord and the tenant for the agreed-upon duration, from 30 to 99 years.
A lease also generates an interest in the transferable property and creates rights that can be inherited.
The lease agreement assures that the lessee does not evict the premises unless it is indicated explicitly in the agreement. A legal notice might also be served on the lessee. To be valid in a court of law, a lease deed must be stamped and registered (in case of disputes).
According to tenancy law, the person who receives the rent is the landlord. In a dispute, the person allocated to receive the rent has the authority to take all legal steps necessary to have the agreement either precisely performed or the property removed by instituting appropriate legal actions in a court of law.
Leave and License Agreement
A Leave and License Agreement is a legal instrument that allows the licence holder to use the Licensor’s property. However, the property is granted under a Leave and License agreement rather than a tenancy arrangement. Therefore, the property right would be invalid without it.
The leave and license agreement come under the Indian Easement Act 1882, and it is not similar to the lease or rent agreement.
Difference Between Rent & Lease Agreement
| Basis of Comparison | Lease | Rent |
|---|---|---|
| Definition | Leasing is a contract in which one party grants the right of the property to the other to use it as an asset for a fixed amount of time. | Renting means allowing someone else to use your asset for a given time for a predetermined price. |
| Time Span | Long Term | Short Term |
| Standards of Accounting | AS-19 Accounting Standards | No Particular Standard is required or applicable |
| Involvement of Parties | Lessor and Lesse | Landlord and Tenant |
| Conditions for Maintenance | The responsibility for maintenance is entirely on the Lessor | Owner/Landlord is the only one responsible for maintenance of the property |
| Considerations | Rentals according to the Lease | Rent |
| Changes | Once the contract gets signed, it can’t be changed further | The terms of the contract can be modified by the landlord. |
| Buying Offers (if applicable) | The lessee receives an offer to acquire the leased asset for a residual value after the lease period. | Not Applicable |
What is the Process of Creating the House Rent Agreement Online?
Making a rental agreement online is available through a variety of internet sites. Squareyards.com offers a service which is fast and efficient. While the processes may differ depending on the platform, the basic procedure includes the following elements:
1. Fill in the information on the landlord, tenant, property address, and lease terms, such as lease period, monthly rent, and security deposit amount, among other things. Depending on your preferences, you can choose between a lease arrangement and a leave and licence agreement.
2. You will need to preview the created agreement to ensure that all the details entered are correct. Once you preview the details, the payment shall be made on the platform using any acceptable payment method, such as UPI, debit card, etc. The appropriate stamp duty charge (which you may have to calculate), convenience charge, and delivery price (which vary by platform), as well as the applicable Goods and Services Tax, will be included in the payment (GST).
3. The platform will have the online lease agreement printed on proper stamp paper and mailed to you. If you prefer a soft copy, you can have the e-stamp and the online lease agreement emailed to you. The online hard copy of the rent agreement usually takes 3-5 business days to arrive.
Squareyards offer online rental agreements that allow you to sign the contract digitally. After the payment for the service has been made and the agreement has been formed, the signatures of both parties will be asked. Following that, both parties will have the option to share the agreement and digitally sign it. The online rental agreement can be downloaded after both parties have signed the agreement. You can also avail free rental agreements in India.
NOTE: Digital signatures are legally recognised under Section 5 of the Information Technology Act of 2000.
Documents Required for Rent Agreement
While getting a tenant agreement online, one needs to have the following documents handy:
- The property’s original proof/evidence of ownership or title.
- Index II, or the tax receipt for the property to be leased, can be used for Property documentation
- Two photographs of each party and one photograph of each witness
- Copy of both parties’ and witnesses’ proof of address. Any of the following documents can be used to prove your address: a passport, an Aadhar card, a ration card, a bank passbook, or a driver’s licence.
- Map of the leased-out property’s route
Rent Agreement Format
The following is a basic rental agreement sample (also known as tenant agreement sample) used widely in India. It’s important to note that this is an 11-month lease arrangement.
What is the Stamp Duty on Rent Agreement?
Stamp duty is a tax levied by the government on various property transactions. You must pay stamp duty when you buy a home or sign a rental agreement. Section 3 of the Indian Stamp Act, 1899, mandates the payment of stamp duty.
What is E-Stamping in the Rental Agreement?
E-stamp paper or E-stamping is a method of electronically paying stamp duty to the government. The government has replaced the conventional paper and franklin stamping approach with a digital plan to ensure a quick and trouble-free payment process. This service is currently available in 22 Indian states.
Frequently asked questions
Is the rent agreement generated online valid?
Online rent agreement which has been executed on stamp paper & has been signed by both the parties is legally valid and can be used as address proof.
Do I need to visit any government office?
No, We will conduct the whole process for you online or at your home. We will save you from the hassles of going to government offices
Can I add extra clauses apart from the ones mentioned in the online rent agreement?
Along with the set of clauses that are already in the rent agreement, some customised clauses can be added during the rent agreement creation flow.
What are the documents required to make the online rent agreement?
You don’t need to have any document with you while creating the rent agreement online but during the Biometric verification all parties involved (Tenants/Landlords/Witnesses) must have:
1. Passport-size photographs.
2. Photocopy of identity proof (PAN card, Aadhar card, election card, passport, etc.).
3. Original identity proof for verification.
How is the rent agreement delivered to me?
The rent agreement will be delivered either through mail or to your register address.
How much does it cost for creating the online rent agreement?
The cost of creating a rent agreement depends on a lot of factors like the duration of the rent agreement, monthly rent, refundable security deposit, etc. You will get to know the exact cost while creating the rent agreement
