How To Make A Lease Agreement Online In India: A Step-by-Step Guide

Rent contracts are vital files for both property owners and occupants, laying out the conditions of leasing a residential or commercial property. With the introduction of innovation, developing a lease contract online has actually become a convenient and effective process. This blog will direct you through the steps to make a lease arrangement online, explain the relevant laws in India, and clarify key terms such as unregistered lease agreement, signed up lease contract, power of attorney for lease arrangement, and more.


You can speak with Landlord/Tenant Lawyers in your cities for best legal guidance


Understanding Rent Agreements


A rent contract is a legal file that outlines the terms under which a property manager accepts lease a residential or commercial property to a tenant. It consists of information such as the period of the lease, lease amount, security deposit, upkeep duties, and other crucial conditions.


Unregistered Rent Agreement vs. Registered Rent Agreement


- Unregistered Rent Agreement: An unregistered lease arrangement is a document that is not registered with any government authority. It is usually valid for a brief duration (less than 11 months) and is typically utilized for casual rental plans.


- Registered Rent Agreement: A registered rent contract is one that is signed up with the Sub-Registrar's office. It is legally binding and supplies more protection to both parties. Registration is compulsory for contracts surpassing 11 months.


People Also Read: Why you must get your lease arrangement signed up


Steps to Make a Rent Agreement Online


1. Choose a Trusted Rent Agreement Service


The initial step is to pick a trustworthy online platform that offers rent arrangement services. These platforms supply design templates and assistance to produce a lawfully sound contract.


2. Gather Necessary Information


Collect all the needed details needed to draft the agreement. This consists of:


1. Details of the property owner and renter (name, address, contact info)


2. Description of the rental residential or commercial property (address, type, size)


3. Duration of the tenancy


4. Rent amount and payment information


5. Security deposit quantity


6. Maintenance and repair duties


7. Any extra conditions


3. Choose the Type of Agreement


Decide whether you need an unregistered rent arrangement or a signed up lease agreement. For leases longer than 11 months, a registered arrangement is mandatory based on the Registration Act, 1908.


4. Draft the Rent Agreement


Use the online platform's template to draft the lease agreement. Ensure all essential details are consisted of and clearly mentioned. Most platforms provide a rent arrangement draft that you can customize according to your requirements.


5. Review and Finalize


Review the prepared agreement carefully to ensure all details is accurate and all terms are acceptable to both parties. Make any necessary modifications before completing the file.


6. Execute the Agreement


Once the arrangement is settled, both celebrations need to sign it. For an unregistered lease contract, signatures of the property owner and renter, along with witnesses, are adequate.


7. Register the Agreement (If Applicable)


For a signed up rent agreement, follow these additional steps:


a. Stamp Duty Payment


Pay the needed stamp duty, which varies by state. This can often be done online through the state's e-Stamping website.


b. Visit the Sub-Registrar's Office


Both parties (or their representatives with a power of attorney for rent agreement) require to visit the Sub-Registrar's office with the signed agreement and proof of identity. The arrangement will be reviewed, and biometric verification may be needed.


c. Registration


The Sub-Registrar will sign up the arrangement, making it lawfully binding. A copy of the signed up agreement will be supplied to both celebrations.


Legal Considerations and Relevant Laws


The Indian Contract Act, 1872


The Indian Contract Act governs the development and enforcement of agreements, including lease arrangements. It needs that arrangements are made by complimentary permission of the parties and for a legal consideration.


The Registration Act, 1908


This act mandates the registration of lease agreements for durations exceeding 11 months. Registered arrangements offer greater legal defense and are admissible as evidence in court.


The Rent Control Act


Different states in India have their own Rent Control Acts, which regulate the relationship between property managers and occupants. These acts frequently specify lease ceilings, eviction treatments, and other occupant rights.


Power of Attorney for Rent Agreement


In cases where the proprietor or renter can not be physically present to sign the arrangement, a power of lawyer can be utilized to authorize another individual to perform the document on their behalf. This ought to be a registered power of lawyer to avoid any legal concerns.


Differences Between Lease Deed and Rent Agreement


- Lease Deed: Typically utilized for longer-term leasings (generally more than a year). Lease deed registration often associated with industrial residential or commercial properties and requires registration.


- Rent Agreement: Commonly used for domestic homes and shorter-term (as much as 11 months). It can be either signed up or unregistered.


Advantages of Online Rent Agreement Services


Convenience


Creating a lease agreement online conserves time and effort. You can draft, evaluate, and complete the arrangement from the comfort of your home.


Legal Compliance


Online platforms ensure that the agreements are certified with existing laws and policies. This minimizes the threat of disputes and legal concerns.


Cost-Effective


Using online services is frequently more cost-effective than hiring an attorney to draft the arrangement. Many platforms offer budget friendly plans.


Customization


Online design templates are easily customizable to fit your particular needs. You can add or customize stipulations as required.


How to Register a Lease Agreement Online


Step-by-Step Process


1. Choose a Platform: Select an online platform that offers rent contract registration services.


2. Draft the Agreement: Use the platform's template to draft the contract with all essential details.


3. Stamp Duty Payment: Pay the needed stamp task online.


4. Digital Signatures: Some platforms offer the alternative of digital signatures, which can be utilized to sign the contract online.


5. Submission: Submit the signed agreement and needed files to the Sub-Registrar's workplace through the platform.


6. Verification: The Sub-Registrar will validate the documents and register the contract.


7. Receive Registered Agreement: Once signed up, you will receive a copy of the registered contract.


Documents Required


1. Proof of identity (Aadhar card, PAN card, passport, etc)


2. Proof of address


3. Residential or commercial property documents (ownership evidence, tax invoice, and so on)


4. Passport-sized photographs of the proprietor and renter


Creating a lease arrangement online in India is an uncomplicated process that offers convenience, legal compliance, and cost-effectiveness. Whether you require an unregistered rent agreement for a short-term lease or a signed up rent arrangement for a longer period, our expert attorneys will draft a lawfully binding lease arrangement online that safeguards both property owners and occupants. You can quickly tailor the online arrangement to consist of vital terms. By comprehending the appropriate laws and following the detailed guide laid out above, you can make sure that your lease agreement is legally sound and protects the interests of both celebrations involved.