Rental Agreement- Visakhapatnam, Vijayawada And The Rest of AP
Having one of the longest coastlines of all states, Andhra Pradesh, the newly born state is home to the many wonders of Nizam architecture and the Hindu pilgrimage site Venkateshwara Tirupati Temple we all know of. Referred to as the ‘Spiritual Capital Of Andhra Pradesh’, it attracts a mind-numbing 200 million domestic tourists every year. While there is word circulating around that Tirupati will be the next smart city after the newly proposed capital Amaravati, there is little doubt that Andhra Pradesh will continue to have tourists flocking to its pristine shores and spiritual havens. Blessed with such abundance and more, Andhra Pradesh wills us to hold larger promises as both a tourist’s and people’s hub.
Before having to think about settling to make this hub your own, one should probably not miss the rather gruelling task of fixing a Rental Agreement. For that is why we are here for you, to make things easy as pie!
The Four-Number Rule To Preparing A Rental Agreement
- If you have a property in mind and have vaguely entered into a verbal agreement, know that it is never enough, unless you have a written consent. Once agreed to the terms and conditions of both the Landlord and the Tenant, it’s time to put it on paper.
- The clauses that go into the Rental Agreement can vary based on the requirements of the landlord and the tenant. Use our online form to create your own Rental Agreement with the usual clauses in place while you can also customize to include more.
- Download the pre-drafted template of the Rental Agreement once both the parties have agreed to the given clauses and print it on Stamp Paper. Have both the parties attest the same in the presence of two witnesses.
- Register your Rental Agreement at a Sub-Registrar or District Registrar Office. Though this final step is optional, we recommend you to register the agreement all the same as it is a safe bet for one can never tell if you have to face a legal dispute.
Do’s and Dont’s Prior To Entering Into A Rental Agreement
You have just a met a prospective Tenant or an Owner, but before showing any willingness, it is always prudent to make sure that the person you are entering an agreement with is the Owner or Tenant in question. There have been many instances where people actually are duped into paying the Security Deposit (commonly known as the Advance) and to disappear henceforth!
Keeping this in mind if the event arises where you have to pay the Token Advance, it is always advisable to not lend in cash as it has no accountability and therefore make the transaction through cheques.
Also before entering into an agreement, as a tenant it is wiser to remember inspecting the property for secure connections and cross-refer property papers for authenticity.
Obligations Of Landlord And Tenant
- After the Tenancy Agreement has been signed by both the Landlord and the Tenant, the Landlord must give one original signed and registered agreement to the Tenant within fifteen days of the agreement being signed by both the Landlord and Tenant in the manner prescribed.
- Every Tenant shall pay rent and other charges payable within the the stipulated period as in the Rental Agreement between the Landlord and the Tenant.
- Landlord may enter the premises in accordance with written notice given to the Tenant at least twenty four hours before the entry. (The circumstances under which the Landlord is entitled to visit the premises can also be agreed upon in the Rental Agreement)
- Notwithstanding any contract in writing, both the Tenant and the Landlord is expected to maintain the premises in good condition.
Types Of Rental Agreements Normally Used
- 11-Month Tenancy Agreement: It is one of the widely used rental agreements which also doesn’t necessarily entail the registration of the Rental Agreement owing to the short duration of time.
- Commercial Lease: Commercial Lease are agreed upon between businesses and between the Landlord and a business. It is quite customary to register an agreement such as these at the Sub-Registrar Offices.
- Long-Term Lease: Long Term Lease of a certain property is almost always done with private, residential properties. It too entails the registration of the rental agreement also, the stamp duties for these are usually high as the duration of the agreement is in years.
Make Your Rental Agreements Online
Given the amount of technology that pervades our universe today, we see a vast circulation of e-stamps all over India. However some states have fallen behind in implementing e-stamping and Stock Holding Corporation Of India Limited (SHCIL) is working towards bringing this to all the states. If not avoid the process of procuring Stamps, we certainly do avoid the occasional visit to a lawyer. Using our portal, you can draft your Rental Agreement online and make the required customisations from the comfort of your home.
To successfully customize your Draft Rental Agreement here is all you have to do.
- To start drafting your own Rental Agreement all you have to do is fill in the Owner’s and Tenant’s name and address in the respective gaps.
- Discuss the clauses that should go into the Rental Agreement before drafting it into the document.
- And once there has been a consensus among both the parties, add the same into the document.
- Download the Rental Agreement and print on a Stamp Paper of suitable denomination.
- Or you could also have the Rental Agreement printed on a suitable Stamp Paper and delivered to your address, for we also provide delivery services.
All You Need To Know About Stamp Papers
Andhra Pradesh is yet to introduce e-stamping, and hence one has to procure the Stamp Paper of the right denomination from the local Sub-Registrar and District Registrar Offices. Here, it is always important to remember that there are many fake Stamp Papers in circulation and to avoid invalidity of the same, one should procure the Stamp Paper from a Sub-registrar office to purchase them and avoid unknown sources. Generally, Stamp duty applicable to a certain Agreement is paid before or at the time of executing the document. Also Stamp Duty can be paid within three months from the date of receipt.
Stamp Duty Details In Andhra Pradesh
| Nature Of The Document | Stamp Duty Rates |
| Lease Deeds: | |
| (i) Less than one year | 0.4% on the whole amount payable |
| (ii) 1 year to 5 years | 0.4% on the total rent |
| (iii) 5 to 10 years | 0.4% on the whole rent |
| (iv) 10 to 20 years | 0.6% on the total rent |
| (v) 20 to 30 years | 0.8% on the total rent |
| (vi) 30 or more (perpetuity) |
5% on the value of the property under lease or 0.8% on the total rent payable |
Frequently Asked Questions (FAQs)
Some of the frequently queried doubts related to acquiring Stamp Papers are as follows:
1. Since there are two parties making an agreement, who is liable to pay the Stamp Duty?
In case of Mortgage by way of deposit of deed, it is done by the person drawing, making or executing such instrument. In case of lease, it is the lessee (tenant).
2. What are the consequences of non-payment of deed?
When Stamp Duty leviable on a document is not paid, it cannot be accepted or received in evidence. Also no transaction is valid if not duly stamped which is why penalty will be levied.
3. How to prevent use of fake stamps?
In Andhra Pradesh, sale of Non-Judicial Stamp Papers is restricted to denomination maximum of Rs. 100. Therefore, in a way, the government has restricted the circulation of fake stamps. Purchase the Stamps from only authorised/licensed Stamp vendors or from Government Offices. Remaining Stamp Duty can be paid through challans.
4. Can Stamp Paper purchased for one purpose be used for another transaction?
No. A Stamp Paper purchased for one purpose cannot be used for another transaction. For example: An Affidavit executed for a purpose cannot be executed for another purpose.
