Laws for rental properties in Rajasthan – Stamp duty
How is the Rental Agreement made in Jaipur, Rajasthan?
- Review what clauses and terms are to be included in the rental agreement and have a blueprint of the document.
- Print the blueprint on Stamp paper of state-approved value.
- Register the document at local Sub-Registrar office.
Preparation of the Rental Agreement
The definite measure as such does not vary much from that of other states. It begins with the occupant and proprietor discussing what would be the rent, maintenance charges and what conditions should be added into the agreement.
This is carried by either one of the party approaching a lawyer to make the final version of the lease agreement. The lawyer then locates a Stamp vendor and he gets the deed printed on Stamp paper of whatever value the State requires. Both parties who are involved sign on the document, along with their two witnesses. The deed is afterward gets registered at local Sub-Registrar office.
Moreover, these ways are widely inculcated, the cost may vary depending on what the lawyer charges his fees.
Pre Requisites of Stamp Duty
Stamp Duty is a tax that is levied to make any document legally valid. If in case somebody fails to pay the required Stamp Duty, the penalty for it will incur an additional fine up to ten times the actual Stamp Duty. The Stamp Duty charges for Rajasthan are 5% leasing a property with duration less than 20 years.
The requirement of Stamp Papers
Rajasthan has been stamp papers as early as 2011. After that, many centers across popular states have come up with issuing an e-Stamp paper. Also, the e-Stamp papers are available, some sections still resort to conventional Stamp papers, especially in the lesser developed cities.
Registration of The Rental Agreement
Registration is a process to stay safe from forgeries and frauds. If a document is registered, it means that the entities that are been mentioned in the document are the ones who have duly signed the documents and it also helps to prove that the document has not been forged. Registering a document for a property can provide details about feuds/ pending cases about it.
The charges for Registration in Rajasthan of the rental agreements are charged at 1% of the value.
Various types of rental agreements
Rajasthan is the state which usually used the following types of rental agreements:-
Rental Agreement of 11 Month: Among one of the most common types of rental agreements, this agreement is used mostly always for residential properties. The term for this contract is 11 months as the name describes with the option to renew should depend on both parties wish. Registration and Notarization are usually escaped for this agreement.
Commercial Lease: Commercial leases are signed only for business purpose. It could be between an individual and a business or between business and business. Both ways, this kind of lease do not have the standard format as it depends upon the needs of the business. The commercial lease also incur some huge money being paid upfront and also sometimes high rent charges. As this is much like a business deal, registration and notarization are never looked out.
Long Term Lease: Long-term leases are signed for residential purpose. The term of the lease is quite longer than a year. This lease may require some amount in a lump sum to be paid quickly although the amount is refundable and is kept in the form of deposit.
Essential Clauses that have to be included in Rental Agreement
There are various clauses that are mentioned in the rental agreement; here are some rules that should never be skipped in rental agreement-
- Maintenance charges, Rent, and security deposit: The total amount for each of the expenses must be entered separately in the contract so that there is no chance of any confusion.
- Pets: If the owner does not like entertaining pets in his area, he is expected to mention that in the contract. If such a clause is not included, you cannot do anything if the tenant has kept the pets.
- Late payment penalty: It is ok for the owner to charge a fine if the tenant has made any delays in making rent payments. Further nature of actions of such a penalty has to be mentioned clearly in the rental agreement.
- Breaching the contract: If either party disagrees from the contract or breaches it or tries to alter it , the consequences of the same must be mentioned out in lease agreement.
- Food Culture: If the owner wishes to prevent the non-vegetarian food and the consumption of alcohol/ narcotic drugs in his property, it shall be done through the contract.
Security deposit or any kind of advance is paid for a few months’ worth of rent collected in advance from the tenant. This is collected as a caution against any incidents like damage to the property or any kind of non-payment of rent. If no such incident occurs, the owner is expected to refund the amount back to the tenant deduction the valid deductions from the deposit
Advance in the form of Token Money
Another amount which can be collected from the tenant, with in view of his intention of blocking the property of the tenant. Once the owner collects the token money in advance, the property is to be considered been booked for the tenant. The owner must then remove the advertisement to generate more interests from different tenants. The money is usually nonrefundable and among them any of the party wants to back out after paying the token money in advance they will have to compensate for the losses incurred by the other party.