Talking about how to create a rental agreement so it would generally involve all the things which are already discussed between a landlord and the tenant. Both the parties just need to go to the lawyer for drafting of their agreement. After drafting comes the stamp duty and registration which is generally taken care by the lawyer only and if we try to get it done then it would require a lot of time and efforts too and the charges may also vary from lawyer to lawyer. These days you can prepare rental agreement leases online which are more economical and faster too.
E Stamp paper is a kind of paper duty which is imposed on several documents to make them legally valid. In different states the stamp duty imposed on rental agreement differs so talking about stamp duty which is imposed in West Bengal is 4% of the whole amount paid and 6% of the consideration of twice the amount or value of average annual rent. In West Bengal e-stamping facilities were introduced in 2012. The state is still planning to entirely switch to e-stamping which means both e-stamp paper and conventional stamp paper are currently in use.
By registering a document it means to check whether the agreement which is prepared is authentic or not, the details provided are correct or not. It also reveals all the matters related to the property under registration. Registration looks into the matter that all the details provided by the party belongs to him/her or is it some sort of forgery. If during the registration process any such problem arises and the registration is overlooked then the document would never be considered valid evidence in court of law it will always be considered as a collateral evidence. So it is very important to take charge of the proper registration process.
The registration charges are to be paid in the sub registrar office and the charges of registration may also vary like that of stamp duty does state wise and also according to each year’s rule of stamp act by the respective state governments.
So mainly there are three types of rental agreement which are discussed below:-
11-Month Rental Agreement – This is the most commonly used rental agreement throughout the country as this agreement is pretty simple to understand and can be easily exercised too.
This kind of agreement does not involve notarization or registration, this one as the name suggests is a simple 11 months agreement between the landlord and the tenant and it would expire after completion of 11 months
Long Term Lease – Now talking about the Long term lease so this type of agreement is not so commonly used agreement as compared to the 11 month rental agreement. This kind of agreement lasts for years and it is more often used for residential purposes. This type of agreement involves a huge sum of money in the beginning only and once the agreement comes to an end the money is returned to the tenant.
Commercial Lease – This is a type of agreement which is specially made for commercial purposes only and here a huge amount of money is required in the beginning and the tenure is also long. This type of agreement usually doesn’t require so much of paper work as compared to the other two agreement and the formalities which are required to be fulfilled vary according to the type of commercial activity.
Clauses are basically a few conditions which are laid down by the Landlord before the contract starts. It is very necessary to disclose various important clauses which are to be mentioned in the agreement in order to avoid future disputes.
Some of the important clauses are:-
Most important clause is the clause in which Monthly rent, maintenance charge and the security deposit is mentioned. This clause carries utmost importance which can avoid so many disputes, this clause should come along with the frequency of payment too.
Lock in Period– This is mainly a time period before which a tenant can not vacate the house. This lock-in period is mainly made to safeguard the interests of a landlord which means that if the tenant rents a property and just after moving in the house says that i’ll vacant the house in a day which would definitely incur loss to the landlord so to ensure no loss to the landlord this thing came into existence.
Permission to allow pets– There are various people who don’t really like pets or maybe don’t prefer them getting at their place so it is again very important for the tenant to know whether his/her landlord allows pets or not.
Consequences of overstay– Overstay basically means that if a tenant stays in the landlord’s property even after the completion of the lease then the tenant would have to pay a certain penalty, whatever is mentioned in the contract already by the landlord.
Consequences of late payments– If the tenant fails to pay the rent on the agreed date then on that condition the landlord would charge a penalty whatever is pre mentioned in the contract.
Food Habits– This is also again a very important thing which is to be mentioned. This says that if the landlord doesn’t like things like non-vegetarian items, alcohol should be made or consumed in the property then this should be mentioned in the contract clearly that these things are strictly prohibited and if it is still done then action would be taken as per the contract.
Now while you’re getting into a contract it is pretty essential that you check the authenticity of your landlord so it is not very common but sometimes it does happen that the the person who is claiming to be the landlord (owner of the property) might just be the caretaker of the property and fooling you. So some of the important things which are to be checked are mentioned below:-