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Create Rent Agreement NowRent agreements legally bind the landlord and the tenant to abide by the conditions mentioned in the contract. The general practice in Delhi is to make a rent agreement for up to 11 months. The Registration Act, 1908, mandates registration of a lease agreement, if the occupancy tenure mentioned in the agreement is more than 12 months. So, to avoid stamp duty and registration fees, people prefer to enter into a leave and license agreement (rent agreement) for 11 months. On the expiry of the 11 months’ period, if the parties agree, they draw a new agreement for the next 11 months.
The Delhi Rent Control Act, 1995, mandates a written rent agreement and its registration. If the document is not registered, the consequence under the Registration Act, 1908, becomes applicable.
Registration of rent agreements is not mandatory in Delhi if the rental period is less than 12 months. However, it is still advisable to get it registered, to create a legally enforceable right. Only a registered rent agreement can be produced as legal evidence by the parties to it, for resolving any legal dispute amicably. Since oral agreements cannot be registered, they have no legal sanction.