Rent Agreement in Maharashtra
A rent agreement in Maharashtra is a legal document that carries information about the lessor (owner of the property) and lessee (who is using that property for a temporary period). It is a contract between the owner and the tenant outlining the terms and conditions of the rental property. This agreement gives clarity and legal protection to both parties. Mostly this is a written agreement and under section 55 of The Maharashtra Rent Contract Act, 1999, it is mandatory for the lessor and the lessee to make an agreement in writing and register that. In different states, this is not mandatory to register the rent agreement, if the period of the rent is less than 12 months even so it is advisable to get it registered.
Normally a rent agreement contains the monthly rent amount, Payment-related conditions, tenancy period, security deposit, agreement renewal clauses, notice period, termination clauses, responsibilities for maintaining the property, maintenance and repair clauses types of information.
Why We Need a Rent Agreement?
We need a rent agreement to avoid disputes between the lessor and the lessee.
To establish clear expectations and responsibilities and provide proof of tenancy.
Types of Rent Agreements in Maharashtra
There are Four Types of Rent Agreement in Maharashtra are given below:
Leave and License Agreement: This is also a legal document that allows an individual to take possession of a property that the owner of the property owns for a temporary period. This type of agreement is suitable for short-term rentals (less than 12 months), Here the person who has ownership of the property is called the Licensor and the person who is using the property for a temporary period is called the License. This agreement defines the terms of use, security, and duration. This is also added to how the agreement can be terminated and the responsibilities of each party.
Commercial Rental Agreement: This type of agreement is signed for business and commercial purposes only. It is a legally binding contract between an owner and the business tenant. Their main purpose renting spaces like offices and shops for business purposes. And it protects the interest of both parties. In this type of rent agreement money is involved in a large amount. This contract is signed for a long period. Therefore, registration and proper stamp duty are rarely overlooked.
Long-Term Rental Agreement: This type of agreement is used for residential purposes and registration and proper stamp duty is mandatory in this type of rental agreement. Because there is a huge amount of money involved in this as an advance payment. It is a long-term agreement.
11-Month Rental Agreement: This is the most commonly used agreement in Maharashtra. The period of the agreement is only 11 months and after that, both parties have the right to renew or terminate the agreement. Registration is not compulsory when the period is less than a year. Thus, this type of agreement saves money payable towards stamp duty and registration fees.
How to make a Rent Agreement in Maharashtra?
Drafting: Prepare the rental agreement by discussing appropriate clauses with both parties means both parties have to decide mutually what clauses should be added and what should be removed from the agreement.
Here are some clauses that are mandatory to be included in the agreement:
1. A clause related to restrictions on occupancy.
2. A clause that includes the address of the rental.
The dates of tenancy need to be specified.
It is mandatory to mention the method of payment means when, how, and where the rent payments are made.
Security Deposits are always required to rent and pay attention to the state laws that limit the maximum amount a lessor can charge for a deposit or the types of activities a lessor can charge.
Outline lessee maintenance responsibilities in a rental agreement.
The lock-in period is compulsory to be included etc.
Stamp Duty is required because of the amount that the lessee pays to the government to make the documents legally valid. The is mandatory that the agreement must be printed on stamp paper of suitable value. In Maharashtra, the stamp duty is typically 0.25% of the total rent for the duration of the agreement.
Signature: This is mandatory to sign the agreement for both parties’ owner and the tenant with their two witnesses to make it legally binding.
Registration: After both parties successfully sign the agreement, the rental agreement needs to be registered with the local sub-registrar to verify its legal enforceability.
What are the Elements of a Rent Agreement in Maharashtra?
Both parties' details like: Name, address, and contact number.
Property details like: complete address and description of the rental property.
Rental terms like: rant amount and its duration.
Deposit: It's like what amount is deposited as a security deposit and refund.
Owner and tenant have equal responsibility for the maintenance of that rental property.
Documents for Rent Agreement in Maharashtra
Documents for Offline Registration
Proof of original ownership of the property
Address proof copy of lessor and the lessee and two witnesses (Aadhar card, Ration Card)
Two passport-size photographs of the lessor and lessee.
One passport-size photograph of each witness.
Documents for Online Registration:
Aadhar card copy of the lessee and the lessor along with 2 witnesses.
Property’s electricity bill or index 2.
POA – In case of registration through POA.
The Process to Register a Rent Agreement in Maharashtra Online
STEP 1: visit the official website of the Department of Registration and Stamps. https://efilingigr.maharashtra.gov.in/ereg/
STEP 2: Go to the New Entry and select the district where the is located.
STEP 3: Capture a thumb impression using a thumb scanner, and create a password, click next.
STEP 4: Enters the details of the property to be rented.
STEP 5: Click next to ‘Party Details’.
STEP 6: Enter details of the lessor of the property to be rented.
STEP 7: Enter details of the lessee of the property to be rented.
STEP 8: Enter details of both witnesses.
STEP 9: Enter rental details and any other terms and conditions.
STEP 10: Pay the fees of stamp duty and registration charges.
STEP 11: Read the documents generated and click on execute after verifying all details entered.
STEP 12: Capture photo and thumb impression of the parties and click on save.
STEP 13: Verifying the photo and thumb impression of both parties entered in the earlier steps and click on admission.
STEP 14: Enter the Aadhaar card details of both parties and click on verify KYC.
STEP 15: Click on the view PDF and the PDF version of the documents can be seen.
STEP 16: Verify all the details before submission.
STEP 17: After verifying submit apply for registration.
STEP 18: After submitting, a token key will be generated.
STEP 19: After generating the token key, an individual can download the agreement and the payment receipt by using that token key.
Conclusion
A Rent Agreement is a legal document and in Maharashtra, this is mandatory for avoiding the disputes between lessor and the lessee. This is a type of contract that contains information related to the owner and the tenant along with the property that is going to be rented like their address and both parties' details like name, residential proof, and identity proof. Registration is not mandatory if the period of the rent is less than 12 months. This written agreement and under section 55 of the Maharashtra Rent Contract Act, 1999, it is mandatory for the lessor and the lessee to make an agreement in writing and register that. You can register your rent agreement online by visiting their official website https://efilingigr.maharashtra.gov.in/ereg/
You just need ID Proof, Address Proof, and Property ownership documents to register your rent agreement. A rent agreement is a vital document that protects the interests of both parties in Maharashtra. By understanding the types, elements, and the registration process you can create a comprehensive and legally binding agreement.
eStartIndia will help you draft a Rent Agreement from the comfort of your home.
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