Note here that notarized certified rentals are not identical to registered documents. In the event of a dispute between the landlord and the tenant, the court will not accept a notarized agreement as proof. It is therefore important to register the rental agreement correctly. Draft agreement – Both contracting parties must decide the terms of rent, deposit and other conditions. Decide and design the lease accordingly. The lease form related to notarized certification is non-binding and is usually made for mutual understanding. They can be easily printed on stamp paper and shown to the official, he only has to check and confirm. In order to promote rentals in India, the government has drafted a draft directive, the Model Tenancy Act, 2020, to make the transaction advantageous to both landlords and tenants. The provisions of this model policy should be the guiding principles for the development of a lease agreement. According to the union secretary, the policy, which will likely soon replace existing rental housing laws across India, will unlock via a Crore apartment on rental markets in India. The registration fee for rental contracts in Karnataka is 1% of the deposit.
While many people forget the importance of paying a correct stamp duty and registering the document, these factors cannot be ignored. If the corresponding stamp duty is not paid, the parties may have to pay, in the event of a dispute, 10 times the original value as a fine. There is no longer a buffer paper system in Delhi/Karnataka. The dominant stamp paper system was replaced by the government in 2011 (in Delhi) and in 2007 (in Karnataka). The government has appointed Stock Holding Corporation India Limited (www.shcilestamp.com) to its Central Record Keeping Agency and they are the only rating agency with the government for electronic stamps. Therefore, the lease for Delhi and Karnataka should be made only on e-stamp paper. See also: Compromise clause in leases and how it can help landlords and tenants For example, if you have made the lease on paper 10/e-Stamp and you go to court for litigation, the court can calculate the fine up to 10 times the amount of tax on stamps to be paid.