What is the Difference Between a Notarized Agreement and a Registered Agreement in a House Rental Deal?

The difference between registered and notarized rent agreement is that a notarized agreement is a rental document which is signed in front of a notary to establish its authenticity. On the other hand, a registered rental agreement is an agreement between the tenant and landlord on a stamp paper registered with the sub-registrar of the area. It is formed in case the rental tenure is for more than 11 months. 

Difference between registered rent agreement and notarized agreement is as follows:

Let’s explore the differences between a notarized rent agreement and a registered rent agreement in the context of house rentals:

Notarized Rent Agreement:

• Process: A notarized rent agreement is printed on a stamp paper and signed in front of a public notary (usually a lawyer or advocate).

• Verification: The notary verifies the identities of both parties (landlord and tenant) and endorses the document.

• Simplicity: Simpler to execute; no stamp duty or registration fees required.

• Admissibility in Court: Notarized agreements are not admissible in court during legal proceedings.

Registered Rent Agreement:

• Process: Prepared on a stamp paper and registered with the sub-registrar of the area.

• Verification: Thoroughly verified by the registrar/sub-registrar.

• Legal Protection: Provides greater legal protection and security.

• Admissibility in Court: Registered agreements are admissible in court according to the Registration Act, 1908.

Choose Wisely:

• If simplicity and cost-effectiveness are priorities, opt for a notarized agreement.

• For stronger legal validity and security, consider a registered rent agreement.

I hope this helps!

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To help you understand the difference, let me help you with the meaning, functions, advantages, and disadvantages of each of them.

Notarized Agreement:

A notary or a notary public is a public-commissioned official. The official is supposed to serve as an unbiased witness to the signing of the agreement. In India, majorly the Notary Public are lawyers and advocates. The following documents should be notarized:

• General Will

• Power of Attorney

• Partnership Deed

Functions of a Notary Public: 

• It verifies the type of agreement

• It identifies and verifies all the parties

• It makes sure that the parties getting into the agreement are competent for the agreement, i.e., are of sane mind.

• It endorses the agreement by signing it

Advantages of a Notarized Agreement

• It is easier to execute than a Registered Agreement. You just have to visit the lawyer’s office.

• You don’t have to pay any stamp duty or registration fees.

• The notary acts as a witness to the agreement. 

• A notary stamp signifies the parties involved in signing the agreement to be real and genuine.

Disadvantage of a Notarized Agreement

• A notarized agreement is not admissible in a court of law. 

• There is no legal mandate to notarize an agreement in India.

A Registered Agreement:

An agreement printed on stamp paper and registered with the regional Registrar or Sub-Registrar is known as a registered agreement. A copy of the registered agreement is maintained in the government database and a Unique Identification Number. Registration of an agreement can be done either online or by visiting the office of the Registrar/Sub-Registrar. The following documents should be registered:

• Rent Agreement

• Sale Deed for Land or Building

• Other such Real Estate Agreements

Advantages of a Registered Agreement

• The Agreement is thoroughly verified before registration, by the Registrar/Sub-Registrar.

• It is admissible in the court of law according to the Registration Act, of 1908.

• It ensures a sense of security for the owners of the agreement

Disadvantage of a Registered Agreement

• For the registration of an agreement, you need to depend on the government bodies.

• You need to pay the registration and stamp duty fees which are in general represented by a percentage of the total value of the agreement.

I hope this helps you understand the difference between both these agreements.

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The key differences between

notarized vs registered rent agreement

is as follows:

Notarized Agreement:

• A notarized agreement is a document which is signed and authenticated by a notary public.

• It is not mandatory for rental agreements. It adds an extra authenticity and also useful for evidentiary purposes in case of disputes.

• It involves the registration authorities. It is a private agreement.

• It is less expensive and involves less paperwork than registered agreements.

Registered Agreement:

• A registered agreement is a rental agreement. It is registered with the local sub-registrar office.

• It provides legal sanctity to the agreement and gives protection to both the landlord and the tenant.

• Registered agreements are mandatory in some Indian states and cities, while in other states, they are not obligatory.

• It involves paying a registration fee and stamp duty.

This is the difference between registered rent agreement vs notary rent agreement

.

It wasn’t until I started living on my own in Bangalore that I realised that there is a difference between notary and registration when it comes to rent agreements. While negotiating with my landlord, whom I connected with through NoBroker, the terms of my rental agreement he asked me if I would want to get a notarized rental agreement or registered agreement. I didn’t know what to say to that. He explained that registered rent agreement can be presented as a legal proof in the court of law whereas a notarized rent agreement can’t be. Apart from that, there were some other differences in terms of pricing, stamp paper, validity, etc.

Difference between registered rent agreement and notarized rent agreement

As mentioned by everyone here, a registered rent agreement is admissible in court while a notarized agreement isn’t. 

I personally feel that if you are entering into tenancy of less than 12 months then you won’t be required to get your rent agreement registered. You can simply execute a rent agreement in the presence of a notary by paying somewhere between Rs. 200 - Rs. 500. But one drawback is that if, God forbid, you get into a legal hassle, this rent agreement will not be admissible in court. 

A registered rent agreement obviously gives one a sense of security and assurance as it is legally valid and recognized. It is printed on a stamp paper and is duly registered in a Registrar’s office. Each and every detail in the registered rent agreement is verified by the SRO. Any rental 11 months should be defined in a registered rent agreement. 

I have signed a notarized rent agreement for I and the landlord, both of us are no trouble makers and our arrangement is unlikely to go beyond 11 months. I hope your doubts about the difference between registered and notarized rent agreement are now resolved.

Hey,

When I moved into my 2BHK, I had to sign my house rental agreement. I was told that I have the option to either notarize or register the agreement. I will share rent agreement notary charges and the difference between the two below. 

• A notarized agreement is a valid legal document that is signed in the presence of a notary public.

• The notary public verifies the identity of the signatories and witnesses the signing of the document.

• A notarized agreement is considered valid in a court of law, but it may not be sufficient as evidence in court.

• A notarized agreement may require periodic renewal.

• Notary charges may vary by state/city and can range from a few hundred rupees to a few thousand rupees.

• Notary agreement validity is forever. Though  a notarised agreement has validity of 3 years in court of law. If there is any negative clause stated in the agreement then the limitation period gets extended.

• A registered agreement is a rental agreement that is registered with the local government authority.

• To register an agreement, you will need to pay a registration fee and stamp duty, which varies by state/city.

• The agreement is then recorded in the government's database, which makes it a more reliable form of evidence in a court of law.

• Continuing with notary vs registration. A registered agreement provides greater protection to both parties and is recommended for long-term rental agreements.

• Registration charges may vary by state/city and can range from a few thousand rupees to tens of thousands of rupees.

In Karnataka, rent agreement notary charges for my rental agreement were 650 rupees. You can speak to a local notary and bargain if needed.

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Creating an agreement is one of the most important things that need to be done while renting out a property. People often get confused between a rent agreement and a notarized agreement and sometimes they don’t even know whether a notarized agreement valid in court or not.

It is just a rent agreement that is printed on a stamp paper and signed by a Public Notary. In our country, public notaries are mainly advocates and lawyers.

In the case of notarized agreements, the notary verifies the documents and identities of both tenant and landlord and endorses the document by signing on it. For this process, both parties need to present before the notary.

It is much easier to execute a notarized agreement than a registered agreement as it can be done by just going to the office of a lawyer, and you don’t need to pay any registration fees and stamp duty for this. You just have to pay a fee (Rs. 200 to 500 approx.) for the notary to the lawyer.

In case of any legal proceedings, notarized agreements can’t be admissible in the Court, as they don’t validate the rental transactions. They just verify the documents attached along with the agreement.

It is a rent agreement that is printed on stamp paper and registered with the area’s sub-registrar. The registration process can be done in person by going to the office of the sub-registrar or online. You can even make a registered rent agreement from the comfort of your home through NoBroker.

In case of any legal proceedings, the registered rent agreements are admissible in the court, unlike notarized agreements. However, if the rental agreement isn’t registered, the provisions of the Rent Control Acts of the central government and several state governments ain’t applicable.

Renting out a property is a major source of income for many people, especially for the elder people who use their life savings to buy a property to enjoy the rental income after retirement. That’s why renting out property needs to be dealt with great caution and care, to prevent legal hassles in the future.

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Now you know whether notarized agreement valid in court or not.

I am living in a rented property for 5 years now. My landlady and I share a great reputation. In the first year of my living, we entered into a rent agreement which we signed in front of a notary and my landlady gave me a copy of that agreement. I was okay with the location and overall living conditions so I asked her if she was comfortable to extend my stay for next 3 years. She said okay. We contacted the broker and asked him if he would help us. He said it would cost us more. So I decided to look up why and that is when I finally found out the difference between notary and registered rent agreement.

I think I can help you know the difference quite easily. 

Many people have explained here that a registered rent agreement is an agreement signed between landlord and tenant in the sub registrar’s office with his stamp. But what do you think are its advantages? 

Yes it is admissible in court and gives a sense of security. But the major thing is that the sub registrar or sub registrar thoroughly check the content of the agreement. If they spot any discrepancies, they will not go ahead with the stamping. 

Again, an agreement signed by landlord and tenant in the presence of a notary who acts as an unbiased witness to the arrangement. The advantages of notarized agreement if you ask, of course it is easy to execute, nominal and establishes the genuinity of the document just like a registered document.

A notarized rent agreement is valid but it is not admissible in court.

Pretty much everything mentioned in other comments is valid but I think you should also know that in terms of authenticity, Notarized agreement is recorded just as a shirt description manually by the notary. But a registered rent agreement is recorded in the Government database properly as a copy is entered officially making it a proof of transaction between both the parties.

I know for a notarized rent agreement you have to pay barely Rs. 500 and Rs. 3000- Rs. 5000 for a registered rent agreement. But in my honest opinion, a registered rent agreement is a good option to keep yourself secure. 

I hope my point of view helps you arrive at the right decision.

Are you a responsible landlord? A responsible landlord is a person who makes sure to prepare the rent agreement before delivering his/her house keys to the tenants. There are two processes to prepare a rental agreement: notarized

rent agreement and registered rent agreement. In this anwer you will understand notary agreement vs registered agreement which is the better choice.

 If we talk about  notary agreement vs registered agreement which is better, both have there own pros and cons that are described below

This is the difference between notary and registration. Hope your doubts are clear by reading this answer. 

A notarized agreement or a notarized rental agreement is a document verified by a notary declaring the authenticity of both parties signing the documents. Notarization is helpful in averting frauds.

Whereas, a registered rental agreement is a rental agreement on a stamp paper that is registered with the sub-registrar of the area. A registered rent agreement is admissible in the court for legal proceedings. A rent agreement is required to be registered with the sub-registrar if the rental period is for more than 11 months. 

The major differences between a notarized agreement and a registered rental agreement are:

1. A notarized agreement is not admissible in court, a registered rental agreement is admissible in court

2. The cost of a notarized document is lower than the registered rental document; stamp duty and registration charges are applicable.

3. A notarized agreement is not a mandatory document, on the other hand, a registered rental agreement is compulsory for a period above 11 months.

Notarized rental agreement is generally made for immovable property by the tenant or the owner. It is not binding and is actually made for mutual understanding. The process is very easy compared to the registered rental agreement. Notarized rental agreements can be easily printed on stamp paper under the guidance of a public officer or a notary public just need to verify it and confirm it and can authenticate the document. 

The stamp duty of rent agreement paid is low in the notarized rent agreement. Another advantage of a notarized agreement is that when rental agreement is immediately required between the landlord and tenant, the notarized rent agreement can be quickly made. This is accepted as proof of residence in maximum states of India.

According to the Transfer of Property Act it is mandatory for all rental agreements  for a period of more than 11 months to be registered. There is no such compulsion in case of notarized agreement.

 A major advantage of a registered rental agreement is that any act involving the government like passport application, for renewal of passport, claiming HRA deduction etc. a registered rent agreement is required.  A notarized agreement can only be treated as a valid proof ID address and the cases such as getting a new phone connection or a Wi-Fi connection etc. it is valid. 

Also a copy of the registered rental agreement is always in the government records where as in notarized agreement only minor details are present. In case of major disputes the government records are the best proofs. 

Though the charge and procedure for registering the rental agreement is more detailed compared to notarized agreement, the benefit is also higher and safer than notarized rental agreement.. 

NOBROKER provides legal guidance regarding Registration of the rental agreement. The tenants and landlord both can be stress free and the entire legal procedure is duly followed by NOBROKER.