Online Lease Agreement in Delhi
Online Lease Agreement in Delhi
Introduction to Lease Agreements Delhi
A lease agreement in Delhi is a document that permits the tenant to use a property owned by a landlord for a specific period in exchange for rent. However, this document does not transfer ownership rights to the tenant. Having a legal document binding the two parties is necessary as it not only mentions a few agreed-upon terms but also safeguards the rights of the invested people.
A typical lease agreement mentions the names and addresses of both parties, a description of the property, the rental amount, and certain terms agreed upon by both parties.
Common Clauses in Delhi Lease Agreements
Clause |
Description |
| Renewal Clause | States that the agreement shall be renewed at the end of the term which might alter a few clauses and terms. |
| Early Termination Clauses | States the conditions under which either the landlord or tenant can end the agreement before its full duration. |
| Pet Policies | States whether the tenant is allowed to keep pets within the premises or not. |
| Smoking Policies | States whether the tenant is allowed to smoke within the premises or not. |
Security Deposits in Delhi
A security deposit is charged at the beginning of the tenancy and is an additional fee charged by the owner as a safeguard for battling unforeseen scenarios that may creep in during tenancy. It is typically collected before a tenant moves in and is held till the end of the tenancy. The legal limit for security deposits in Delhi is 2 months of the rental amount for residential properties and six months for non-residential spaces.
That said, the security deposit needs to be refunded to the tenant in full at the end of the term mentioned in the lease agreement Delhi. However, it is important to note that the owner may refuse to refund or deduct specific amounts from the deposit if the tenant is liable for damaging the property.
This implies that the owner comes and inspects the premises just as the tenant is about to vacate the premises. The owner might deduct money from the deposit on spotting damages like broken windows, cracked tiles, and additional holes in the walls.
What is Lease Duration and Renewal?
Every lease agreement has a set period for which it is valid. This is generally 12 months or more for people in Delhi. The terms of the lease like the rent or other terms and conditions cannot be changed during an active term.
However, if the duration of a lease agreement Delhi runs out and the tenant wants to keep using the property, a new lease agreement should be drafted. In this renewal procedure, the landlord is free to change the terms and conditions, but they should all be agreed upon by both parties.
Delhi Rent Control Act
There are certain provisions in the Delhi Rent Control Act, 1958 which make lease agreements in Delhi unique. However, this act was amended twice, once in 1988 and then again in 2020. The most important points to be noted are mentioned below:
- Drafting and registering lease agreements is now mandatory. The tenant shall be the owner of the first copy whereas the second copy should be submitted to the Rent Control Authority.
- In the case of expiration, it will be considered renewed every month with the same terms and conditions. The tenant, if they wish to prolong their stay, is responsible for paying rent as is owed each month.
- Security deposit limits were also set via this cat. While the commercial rent agreement format Delhi saw a 2 month limit, residential formats will now bear limits of only one month.
- Landlords cannot evict tenants if rent is being paid promptly.
- Landlords cannot evict tenants if they are paying at least the standard rent set by the government.
- Landlords can only increase the rent if renovations are made. The cap on the raise is set to 7.5% of the total renovation cost.
E-Stamping and Stamp Duty for Lease Agreements in Delhi
The registration of lease deed in Delhi sees a notary public stamp the agreement. However, with NoBroker, you can get this done sitting at home thanks to the e-stamping facility.
While registering every lease agreement Delhi, stamp duty is owed to the government. This rate varies between states and the types of agreements as well. The lease deed stamp calculator Delhi states the following:
- INR 50 is owed if the lease term states a period of less than a year.
- If the lease term is equal to or more than a year but less than five years, the stamp duty owed is 2% of the average annual rent.
- If the lease term exceeds five years, the stamp duty collected is equal to 3% of the average annual rent.
It is also important to remember that certain registration and service charges may also apply.
Documents Needed to Draft a Lease Agreement Delhi
ID and address proofs are to be submitted by both parties and they may use the following:
- Aadhar Card
- Driver’s License
- Passport
- Voter’s ID
Additionally, the landlord/owner also needs to prove ownership of the space and to do so. Hence, they need to share the ownership deed and tax receipts about the rental space.
How Can NoBroker Help?
At NoBroker we let you draft and register a lease agreement Delhi online. This not only allows you to do it from home but also eliminates all the middlemen. This especially comes in handy when the tenant and landlord do not stay in the same city. Our database has hundreds of formats you can refer to while drafting your agreement. Our team of legal experts also ensures that everything stays within legal limits. So log in today and take advantage of additional features like Aadhar e-sign, same day delivery, tenant verification and much much more.