Online rent agreement in Bangalore
Bangalore is not a city you visit to knock a specific sight or attraction off your travel bucket list. Don’t get us wrong — there’s a lot to see here, but in Bengaluru it’s more about eking out your place in the city, finding that bar or microbrewery. However, Bangalore is very famous for its IT and software companies. There are a lot of start-ups that take birth in the city, and the city already has well-established MNCs. This created opportunities for the people to get employed and later on migrate to the city.
Now migration involves a lot of headaches. Truly! There are a lot of times the company does not provide accommodation but some monetary benefits. So, it would help if you found a place to live in when you are migrating to Bangalore. So, renting a flat involves a lot of pointers. There are a few terms and conditions; the process needs to be followed. These holds so much importance as they are legally bounded. So, instead of confusing you with these random explanations, below we have a thorough guideline that involves the process and requirements while you sign a rental agreement in Bangalore:
Procedure to Make Bangalore rent agreement
- The first step involved in drafting the Bangalore rent agreement and later on printing it on a Stamp paper of due value as mentioned below
- Once the above step is done, the Rental Agreement signed by the owner and tenant in the presence of two witnesses
- The two witnesses should also sign and attest the document – this is a mandatory step you cannot skip it
- Now get the Documents registered at a nearest Sub-Registrar office after paying due registration charges
Rental agreement in Bangalore with stamp paper and Registration
To all those who do not know what stamp duty stands for: A Stamp Duty is the tax that is levied on legal documents as render for making them legally valid. When it comes to the state of Karnataka, a maximum Stamp Duty that can be charged on any rental agreement is INR 500/- However, it is typically calculated as follows:
- For a time from 0 to 10 years that stamp duty charges are 1% of annual rent + deposit
- For time above ten years, the stamp duty charges are 2% of yearly rent + deposit
The registration charges for e stamp for rental agreement in Bangalore
stand at 1% of the rent + deposit. There a lot of times commonly numerous people overlook the importance of paying proper stamp duty and registering the document. Now, these factors cannot be ignored. If appropriate stamp Duty is not paid, there will be a dispute raised, both the parties involved may have to pay ten times the original value as a penalty. So, it is better to pay a minimal amount, in the beginning, to avoid any headaches later.
Likewise, when it comes to the other side, not registering a document has harsh consequences. Unregistered documents will and can never be accepted as primary evidence; such form thought over as collateral in courts.
Is Notarization Required?
The most asked query once you get the drill of the Registration of rental agreement in Bangalore. For the leases with a term of 11 months or less, notarization is not necessary. When it comes to leasing that is created for a year or more, Registration (and not notarization) is recommended. This process instead steps is a fraud-deterrent precaution, which proves that the entities mentioned in the contract are the ones who signed it and that the Rental Agreement is not a forged or fake one.
The 11-month rental
In Karnataka, the term of renting is no different from the other states. It is usually 11 months. Just like in any state (mostly), it can be renewed at the end of the 11th month. This ultimately depends on the parties. The tenant must pay monthly rent. Additionally, amounts for the additional amenities like the electricity charges, and water charges are few things that are to be paid as per the tenant’s usage. For more clarification, it is always advised to check and discuss with the owner as to what is the rate.
Long Term Lease
Adding to the methods of renting is the long-term lease. In this, a pre-decided amount is paid as a one-time deposit which is decided rather locked for a certain period or term of lease like two years or three years. The tenant in this type of rental agreement does not have to bear any decided monthly rent. This might sound to be an easy-going process, but the deposit amount is usually hefty. So, not all of us can bear the amount. Mostly these are practiced in the commercial lease. This kind of agreement might still include certain charges namely, the maintenance, or the electricity, and water charges might need to be paid on a regular basis.
Requirements for Renting
The following points mentioned are the requirements that you need to keep in mind while you are thinking to rent a property in Karnataka or taking Property for rent:
- It should be made clear that renting is for either residential or commercial purposes.
- Both parties need to decide and discuss the points of the rent agreement. Then there will be a written and not verbal agreement between the owner of the property and the tenant.
- The agreement must be Printed on rental agreement e stamp Bangalore of a minimum value. This depends on the state, and for Karnataka it is Rs. 100 to 200.
- The stamp duty charged is 1% out of the total rent plus deposit, which is to be paid annually, or in some cases, the amount is Rs. 500/- out of the two whatever amount is lower. To be on the safer side, it is beneficial to agree on a Stamp paper that of the value which is prescribed by the government.
- The house or any property should be painted and given over to the tenant at the on time decided. This can be discussed by the tenant and the owner beforehand. When the tenant is vacating the property, owners make a reduction from the deposit amount and charge the tenant from the deposit, which depends on the agreement. As mentioned, this is an entirely mutual discussion.
- Owners at times request and have specific requirements as they ask for vegetarians as their tenants, and this should be discussed before agreeing.
- A Bangalore rental agreement should be registered at a Sub-Registrar office. And if the term of the deal is involved for more than 11 months, this should be practiced.
- A registered and duly Stamped rental agreement is never a waste and is a piece of valid evidence in Courts if any legal disputes arise.
- The registration charges are mostly 1% of annual rent and discussed deposit that also must be paid at the time of rental agreement registration in Bangalore.
Sample Rent Agreement PDF
Sample Rent Agreement Draft