What is a Lease Deed?
A Lease Deed is a legally binding agreement between a landowner and a tenant that allows the tenant to use the landowner's property for commercial or residential purposes for a specified period. This agreement includes details about the property being leased and the terms and conditions under which it is being leased, such as the rent amount, the duration of the tenancy, and other relevant information. A lease deed is also popularly known as a rent agreement.
Process for Registering a Lease Deed in Delhi
STEP 1: Collect the following documents
- Original copy along with an extra copy of the lease deed
- Identity Proof of the landowner
- Identity Proof of the tenant
- Identity Proof of two witnesses
- Two passport-size photographs of the landowner, tenant, and the witnesses
- The stamp duty to be paid is
- 2% of annual rent for 1-5 years
- 5% of double the average annual rent for 5-10 years
- 5% of double the average annual for more than 10 years
STEP 2: Book an appointment for the tehsil that has jurisdiction over the area where the property being rented out is.
STEP 3: Visit the tehsil at the day and time slot as specified by the appointment, submit the documents, and pay the registration fee of ₹1,100.
FAQs
- When is registration of a rent agreement needed? If the term of the lease is for less than 11 months then registration is not mandatory however it is recommended. If the lease is for more than 11 months then registration is mandatory.
- Can a rent agreement be terminated before the end of the full term of tenancy? Yes, a rent agreement can be terminated and a clause for that is often mentioned in the agreement itself. Even if the agreement was registered, it can still be terminated.
- Can a lease agreement registered for a commercial property be used for residential purposes and visa versa? No, a lease agreement registered for a commercial property cannot be used for residential purposes and vice versa in Delhi, India. This is because commercial and residential properties are zoned and permitted for different uses under the Delhi Master Plan 2021 and the Building Byelaws. Using a property for a purpose other than its intended use is a violation of zoning regulations and can result in legal penalties.
- Can a lease deed be registered for leasehold property? Yes, lease deeds can be registered for leasehold properties in Delhi. In a leasehold arrangement, the land remains under the ownership of the lessor, usually a government authority or landowner, while the lessee holds the rights to use the property for a specified period.