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Everything You Need To Know About Rent / Lease Agreements

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As home ownership may sometimes be unaffordable or inconvenient, a majority of the population in India’s major cities live in rented homes. The follow-up task is to then find a suitable rental property and create and execute a proper rent agreement to make the renting arrangement legal. As the rent agreement remains key to this entire arrangement, the same shall be made with utmost legality and the tenant must know every nitty-gritty about this crucial document.

What is a rent agreement?

A rent agreement is a crucial document that is signed between a landlord and a tenant to initiate and govern a tenancy. This document mentions every detail about tenancy and the terms and conditions of the tenancy. Both parties are governed by such agreement and have to follow the rules mentioned in the rent agreement.

Legal validity of rent agreement

To save costs, tenants and landlords sometimes reach a verbal agreement about the tenancy and avoid executing a rent agreement. Some may also document the arrangement and put terms and conditions with respect to the tenancy but decide not to register the document. This is because both parties tend to avoid to pay the registration charge if a rent agreement is created and registered. Entering into a rental agreement without registration can be said to be illegal and could prove to be a risky arrangement for both parties, especially in case of a future dispute.

It is in the favour of both the parties, to draft an agreement with specific terms and conditions and to get it registered. After drafting the rent agreement, the landlord should print it on stamp paper. Once the tenant and the landlord sign the documents in the presence of two witnesses, they should then get it registered at the sub-registrar’s office, after paying the required fee.

Details to be included in the rent agreement

Key details included in a standard rent agreement are:

  • Names and addresses of the tenant and the landlord.
  • Signatures of the tenant and the landlord.
  • Monthly rental amount and hike.
  • Security deposit.
  • Maintenance charges.
  • Period of tenancy.
  • Responsibilities/rights of the landlord.
  • Responsibilities/rights of the tenant.
  • Penalty for delay in payment.
  • Dispute Resolution.

Stamp duty & E-registration on rent agreement

One has to pay government stamp duty and e-registration fees while getting the rent agreement registered, which will vary, depending on the city where it is registered. The amount of Stamp Duty is paid by way of purchase of the stamp paper of the said value and the amount of e-registration is paid by way of purchase of E-registration fees. In Delhi, the stamp duty is payable at 2% of the average annual rent, in the case of lease / rent agreements for a term of up to five years.

Documents Required

Two passport size photographs of the Landlord and Tenant each; ID proof such as Aadhaar card, Voter’s ID card of all the parties including 2 witnesses; Copy of the computerised House Tax ID; PAN Card of all the parties including 2 witnesses, copy of latest electricity bill; Email ID and Phone Numbers of the parties; Stamp paper and registration fees receipt.

LEGAL ASSIST is a premier global legal management firm and India’s leading legal firm in the field of Property Matters, Inheritance and Succession. The vast experienced team of Legal Assist steps forward to provide a range of services to resolve property issues related to the following – Title Search, Transfer of Property, Property Documentation and Registration, drafting and registration of residential and commercial Rent Agreements, Probate of WILL, Succession Certificate, Surviving Member Certificate, Freehold Conversion, Mutation, Estate Planning. Besides these, we can help you find solutions to any dispute related to property. Feel free to reach us any time!

Sale Deed and its Registration – Step by Step Process

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Sale deed is a legal document evidencing that the sale is complete. It contains details of the buyer, seller, area, location of the property, and consideration details. The sale deed has to be registered with the sub-registrar under whose jurisdiction the property situates but before registration make sure that full consideration is paid. Only registered sale deed has legal value in the eye of law. Section 54 of the Transfer of Property Act, 1885. define “sales” that means the transfer of property or transfer of ownership from the seller to the buyer for the consideration of money paid, partly paid, or promised to pay.

Process of registration of sale deed:

Step 1: Preparation

You must pay the total consideration amount as per the agreement to a sale before registration of the sale deed. Next thing you should remember that there should not be any arrears due on a property, such as previous loans, house tax, society dues, etc. If there are such dues left, then the registrar can refuse to register sale deed.

Step 2: Calculation of Stamp Duty

Stamp duty is payable on the circle rate or actual market value whichever is higher. Stamp duty depends upon on state. In Delhi, stamp duty is 6% for male, 4% for female, and 5% for joint ownership i.e. where the property is purchased jointly in the name of male and female. Along with stamp duty, you need to pay 1% for the registration charges.

Step 3: Payment of Stamp Duty

You can visit the nearest SHCIL/Bank Authorized Collection Centre, pay stamp duty there, and provide your necessary details. SHCIL/Bank Authorized Collection Centre will issue stamp paper. A list of SHCIL/Bank Authorized Collection Centre is available on https://www.shcilestamp.com/.

You can also Purchase stamp paper for the required amount from the Authorized Stamp Vendor in your area. Visit https://www.shcilestamp.com/ to get a list of Authorized Stamp Vendors.

Step 4: Draft and Print Deed

Draft Sale Deed by mentioning buyer, seller and payment details, terms of sale etc. The sale deed should not be conditional and should be drafted in a legal manner.

Step 5: Registration before Sub-Registrar Office

Take an appointment for the nearest sub-registrar for presentation and appearance before the sub-registrar to get the Sale Deed registered.

You can take an appointment online also only for those states which provide an e-stamping facility. For Delhi visit, https://srams.delhi.gov.in/ select your area then click on the yes button if your documents are complete. Enter the e-stamp number and verify your e-stamp number. After verification, you will receive a message in which details of the appointment are provided. On the appointment date, the buyer and seller must be present at the time of registration along with two witnesses. The buyer and seller have to sign each page and witnesses have to sign only a last page. Buyer and seller fingerprints will also be taken at the time of registration.

Step 6: Collection of Registered Sale Deed

Collect token slip after signing the sale deed in the sub-registrar office. Token slip is used for future references and while collecting the original registered sale deed. Original registered sale deed can be collected in 15-20 days after registration. In case of a loan, the bank will directly collect original registered deed from the sub-registrar office.

Documents Required

Duplicate copy of the Sale Deed that needs to be registered; Two passport size photographs of the buyer and seller each; ID proof such as Aadhaar card, Voter’s ID card of all the parties; copy of the computerised House Tax ID; PAN Card of both seller and the buyer, Copy of latest electricity bill; Email ID and Phone Numbers of the Buyer and the Seller; Stamp paper and registration fees receipt.

LEGAL ASSIST is a premier global legal management firm and India’s leading legal firm in the field of Property Matters, Inheritance and Succession. The vast experienced team of Legal Assist steps forward to provide a range of services to resolve property issues related to the following – Title Search, Transfer of Property, Property Documentation and Registration, Probate of WILL, Succession Certificate, Surviving Member Certificate, Freehold Conversion, Mutation, Estate Planning. Besides these, we can help you find solutions to any dispute related to property. Feel free to reach us any time!

PROBATE OF WILL – All you need to know!

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Introduction

WILL has been defined under section 2(h) of the Indian Succession Act, 1925, as “Legal declaration of the intention of a person with respect to his property, which he desires to take effect after his death”. In other words, a WILL is a legal instrument vide which a person disposes off his property to a particular person as per his wish. Generally, WILL takes effect after the death of the person making the WILL. The validity of the WILL is proved by the signature of the testator and the attesting witnesses of the WILL but if there is a probate of will, then it increases the credibility of the WILL.

What is Probate and how long does it take?

Probate is a copy of the WILL duly certified under the seal of the Court to be genuine, authentic and last WILL. Probate of WILL adds a legal character to the WILL, facilitating the executor to distribute estate properly amongst the beneficiary. The entire process of Probate of WILL generally takes minimum six months to complete. However, if there is any objection from the public regarding the WILL, then the Probate of WILL process takes more time to get completed, depending upon the seriousness of the objection.

The Requirement of Probate if there is a WILL?

The rules vary from state to state and particularly, the probate of WILL made in Delhi is not required to be mandatorily probated. However, in normal practical parlance, most of the government authorities and departments have made probate of WILL as one of the requisite, when one relies upon the WILL.

What is the Procedure for Probate of WILL?

The procedure involves the following simple stages:

  1. Making of application to the concerned District Judge through a probate petition which must be duly signed and verified by or on behalf of the applicant and need to be accompanied by an affidavit from one of the witnesses to the WILL.
  2. Publication in the newspaper to call for objections from the general public and issuance of notice to the legal heirs of the testator other than the beneficiary and calling of report from the concerned SDM in respect of the value of the concerned estate.
  3. No objection from the legal heirs of the testator other than the beneficiary.
  4. Evidence of the person filing the probate petition and subsequently, hearing of final arguments.
  5. Passing of judgment for the grant of probate of the concerned WILL.
  6. Submission of requisite court fee, surety bond alongwith surety and subsequently upon acceptance, issuance of Certificate for probate of WILL.

 

LEGAL ASSIST is a premier global legal management firm and India’s leading legal firm in the field of Inheritance, probate of WILL and Succession. During these hard times of Covid-19 where many of us have lost loved ones, the team of Legal Assist steps forward to provide a range of services to resolve property issues related to the following – Title Search, Transfer of Property, Property Documentation and Registration, Probate of WILL, Succession Certificate, Surviving Member Certificate, Freehold Conversion, Mutation, Estate Planning. Besides these, we can help you find solutions to any dispute related to property. Feel free to reach us any time!

Easy to Understand: Probate of Will and Succession Certificate

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Probate of Will and Succession Certificate, both granted by the competent Courts, are of absolute necessity and recommended, especially in the scenario when a deceased person’s estate needs to be distributed by way of Will or by way of Natural Succession. Probate is granted when the deceased person has left a Will. However, the Succession Certificate is granted in both cases, with or without Will.

Requirement of Probate of Will:

Getting the Will probated after the death of the testator, i.e. the person who has written the Will, should be the foremost step that should be taken by the Executor of the Will as it holds utmost importance under many scenarios. Probate of the Will signifies the authenticity and genuinity of the Will made by the testator during his lifetime. In other words, Probate of Will is only a certificate granted by the Court of competent jurisdiction certifying that the Will of the deceased is genuine and valid. In the Will, an Executor is appointed responsible for probating the Will and then distributing and managing the assets as per the testator’s wishes as mentioned in the Will.

If a person is an NRI or an Indian Expat and dies leaving behind a Will abroad bequeathing his movable assets in India favouring his legal heirs, the said Will has to be probated in the said country where the NRI or the Indian Expat lived before his death. Only after the Probation of his/her Will from the Probate Court, the said Will is applicable in India. The beneficiaries can claim the financial assets based on the Will made abroad. A Will that has not been probated abroad has no legal sanctity in India.

Recommended reading: Procedure for applying and documents required for probate of Will in the court.

Probate is legitimate evidence of delegate title and holds great sanctity. There are some cases where the testator had made more than one Wills, or one beneficiary does not admit the existence of Will and may challenge its authenticity. In such circumstances, the Executor of the Will is required to apply for Probate of Will to ascertain Will’s validity and vesting rights in favour of beneficiaries named in the Will. Many of the future works such as Mutation i.e. name of change in the records of the concerned authority, etc. requires getting the Will probated.

Requirement of Succession Certificate:

The Petition for Grant of Succession Certificate can be filed in both cases, with or without the Will. When a person dies intestate, i.e. without making any Will, his legal representatives have to approach the Competent Court for claiming the financial/ movable assets left by the deceased. In simple words, legal heirs can establish a claim over financial/ movable assets like bank deposits, Fixed Deposits, Provident Funds, equity shares, loans, insurance policies or LIC or any other security after obtaining the Succession Certificate from the competent court. The Succession Certificate acts as an assurance of title that helps recover assets and debts due toward the person who is no more and accordingly shields the deceased moneylender from the financial loss.

The individual in whose favour the Succession Certificate is granted can get interest or profits on the movable properties and also receives the right to deal with the same in any manner. The Succession Certificate also implies that its holder now has complete hold over the movable assets of the deceased.

Recommended reading: Procedure for applying and documents required for Succession Certificate in the court

The Succession Certificate is an essential proof of title/ authority, when a person doesn’t make a will, and he/she pass away. Through a succession certificate, the successors of that person can claim their right on the financial/ movable assets.

As far as the jurisdiction is concerned, the District Judge is empowered to grant the Succession Certificate under whose jurisdiction the person who expired had ordinarily resided. In the absence of permanent residence of the deceased, the Succession Certificate can be filed in the jurisdiction of the District Judge where any property belonging to the deceased may be found.

In the Succession certificate, information regarding the person’s death, his/ her surviving representatives who are entitled to claim the movable assets, list of securities, debt, and assets are mentioned. This connotes that the Certificate holder has acquired legitimate authority over the movable assets of the deceased. The Succession certificate is valid and applicable throughout the country. The Court should duly stamp the Certificate for its use and applicability.

LEGAL ASSIST is a premier global legal management firm and India’s leading legal firm in the field of Inheritance, probate of Will and Succession. During these hard times of Covid-19 where many of us have lost loved ones, the team of Legal Assist steps forward to provide a range of services to resolve property issues related to the following – Title Search, Transfer of Property, Property Documentation and Registration, WILL, Succession Certificate, Surviving Member Certificate, Freehold Conversion, Mutation, Estate Planning. Besides these, we can help you find solutions to any dispute related to property. Feel free to reach us any time!

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