Rent Agreement should be done for how many months?
According to IGR department of Maharashtra governments online process it is possible to complete rent agreement for a period of 6 months to 60 months. Means up to 5 years duration. It is possible to have a step by step increment in rent amount every year. The total stamp duty will be calculated based on the total rent amount for the tenure of the agreement. The higher the tenure of the rent agreement higher is the cost of the agreement. Usually, the incremental rent amount is 10 to 15% year on year.
So, an optimum tenure for rent agreement should be discussed and agreed between owner and tenant.
Who should bear the cost of the rent agreement, owner or tenant?
The online rent agreement registration process of Maharashtra government allows the owner or tenant or equal sharing between owner and tenant for the cost of the rent agreement. Usually it is observed that equal sharing between owner and tenant is mostly selected. The rent agreement is an important document for both the owner and the tenant. The document provides legal protection to the owner and tenant. High value of owner’s property is safeguarded by the registered rent agreement. At the same time the document is a legal address proof for the tenant which can be used in passport office, banks, employment office etc.
The online rent agreement registration process is valid for Maharashtra only?
Yes, the online rent agreement registration process is valid for Maharashtra only. Rent agreement registration is a state subject and Maharashtra rent control act specifies registration of rent agreement by online mechanism developed by IGR department. It has been operational since 2013.
Activity in other states are governed by their respective laws.
Is there a fixed format for the online rent agreement registration process of Maharashtra government?
Yes, the format of rent agreement is fixed for the online process. It is defined by IGR department of Maharashtra government and is according to Section 24 of the Maharashtra Rent Control Act, 1999.
It covers all important points necessary in rent agreement like:
- Details of owner and tenant.
- Rent and deposit amounts.
- Tenure of rent agreement.
- Maintenance and electrical charges.
- Safe usage of the property.
- Alteration, No-tenancy, inspection rights to the owner at reasonable intervals.
- Lock in period
- Cancellation conditions
- Last clause is a MISCELLANEOUS clause where additional details can be added but this is limited to 1000 characters.