Rent Agreement on Stamp Paper
Virtual Office in Delhi specifies every word of stamp paper rent agreement used by our clients in the below page. Neither the owner nor the tenant can deny any clause from the written agreement. The rent agreement is valuable evidence is that there has been an agreement between the owner and the tenant.
Sign by the owner of the property & the Tenant – stamp paper
It is essential that the owner of the property and the tenant must put their signature on the stamp paper / e-stamp paper. It is not essential that both must sign at the same time and the same place. This is the only evidence that the owner has given the said property or office or shop to the tenant on rental basis.
Sign by the owner of the property & the Tenant – on rent agreement
Every stamp paper is valid only if it carries a written agreement signed by the owner and the tenant. Signature on the stamp paper and the rent agreement on a piece of paper must be the same. These must be signed by the same person even if it is a Company or Firm or their Authorized Representative. The rent agreement will become invalid if the signature or the name of the party or designation of the party differs.
Some important facts about Rent Agreement
While signing the rent agreement both the landlord and the tenant should take into account some of the essential things such as the landlord should have complete information related to the tenant and the tenant should pay attention that the landlord is not fraud. Also, tenant should know about how long the property is being rented, who will pay the electricity bill, water and house tax, whether it is included in the rent or not.
The Rent is a payment made tenant to a landlord. This is for the use of Office space. Payment for the services rendered by servant to master are also called rent. Rent word is also used in return for the use of machinery, equipment and services.
The Rent Agreement
A rent agreement bunch of terms agreed by owner and tenant. The agreement identifies the name parties, the address of property, the term of the rental and the amount of rent.
The Stamp Paper
Stamp duty for Non-Judicial Stamp Paper is paid under The Indian Stamp Act, 1899. On the other hand, judicial stamp paper, commonly known as ‘court fee stamp paper‘, is used for a legal purpose or for court cases. The judicial stamp papers are used for payment of court fee in the court to avoid cash transactions.
Validity of stamp paper in India
Validity and expiry of old stamp paper: As per Section 54 of the Indian Stamp Act, 1899; if you do not have any immediate use of a stamp paper, then you can deposit it back to the collector within six months from the date of purchase and take back your money as a refund after deduction of 10 paise per rupee.
Duty stamped: Section 2(11) of the Indian Stamp Act, 1899 defines says that “as applied to an instrument, means that the instrument bears an adhesive or impressed stamp of not less than the proper amount and that such stamp has been affixed or used in accordance with law for the time in force in India”.
Agreement relating to several distinct matters
Section 5 of the Indian Stamp Act, 1899 Instrument relating to several distinct matters: states that “Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instruments, each comprising or relating to one of such matters, would be chargeable under this Act”.
In view of provisions contained in Section 5 of the Act, The Virtual Office in Delhi provides Rent Agreement from the Karta of RS SAHOTA HUF mentioning the rent and also the Registered Office services. These services are physically provided by representative of RS SAHOTA HUF at the virtual office premises.
Execution time of rent agreement on stamp paper
As per Section 17 of the Indian Stamp Act, 1899 the law specifies for Instruments executed in India—- All instrument chargeable with duty and executed by any person in India shall be stamped before or at the time of execution.
In view of this provision of Section 17, the Virtual Office in Delhi issues the NOC and Rent Agreement on purchase of Stamp Paper. If the Stamp Paper is purchased after wards, it shall become invalid in court of law, unless and until it is specified that the rent agreement commences from a certain date. Therefore, the Virtual Office specifically writes the date of commencement of the Rent Agreement. Secondly, the Stamp Paper should be purchased in the State of India in which the rental property is exists. Therefore, it is essential that the stamp paper should be purchased from Delhi NCR only.
Tenant has to purchase the stamp paper
In general cases, the owner of the property want to protect himself and therefore ensures to keep original copy of the Rent Agreement with him and photocopy or a copy of the Rent Agreement is given to the Tenant. The owner is interested to have the Rent Agreement on Stamp Paper and therefore, he always takes the initiative to purchase it from the Court.
It is a frequently asked question by the public as to who should purchase the stamp paper. The basic reason is that, the person who pays for the stamp paper will keep the original with him. As far as the Virtual Office is concerned, we give even the original to the tenant, if specifically required for verification by any Govt. authority.
Therefore, in normal cases the Virtual Office gives the scanned copy signed by the owner to the Tenant or send by E-Mail. Then, the Tenant signs that page and sends back the scanned copy to Virtual Office for records.
Section 29 of the Indian Stamp Act, 1899.
This section specifies that cost of stamp paper shall be borne by Tenant. In the case of conveyance of mortgaged property it to be borne by the grantee. In the case of a lease or agreement to lease, by the lessee or intended lessee. The parties can make a separate agreement to bear the stamp paper cost too.
Purchaser of property is called a grantee in legal term. You can also be a grantee without receiving a property deed. For example, a land contract features both a grantor and a grantee. The grantor is the owner, and the grantee is the buyer. The grantee acquires equitable interest in a property.
Registered Office management
Every company registered under the Companies Act, 2013 must adhere to the company law provisions specified in Section 12 of the Companies Act.
Period of Rent Agreement at Virtual Office
The property dealers to avoid problems make the rent agreement for 11 months. But it is the option of both the parties to determine the period of rent. It can be 11 months, 1 year, 2 year, 3 year or 10 year or 20 years as per choice of the parties. No law specify the period of rent agreement.
Frequency of payment of rent
Normally the tenants are able to afford the rent for taking a house on monthly basis. It is the convenience of both the parties to determine the frequency of rent payment. Both the parties can mutually determine the frequency of payment of rent. There is no law to limit any period. We at Virtual Office in Delhi charge the rent for the entire period chosen by the Tenant. The period vary from 1 month to 5 years.
Value of Stamp Paper / E-Stamp Paper
The value of the stamp paper has to be as per law of the State Government. In union territories, it shall as per Central law called The Indian Stamp Act, 1899. As per New Rates of Stamp Duty in Delhi the rent agreements are specified in Article 35(a). The value of stamp paper is specified and for the 1st and 2nd options applicable to our rent agreements on stamp paper. (i) Rent Agreement up to one year, the value has to be 2% of the average annual value. (ii) Rent Agreement from one year to five years shall be of 2% of average annual rental value. It is essential that while mentioning in the Stamp Paper, the purchaser has to be careful for the clause (i) and (ii).
Stamp Paper use in Virtual Office
The purchaser may purchase the Stamp Paper from any vendor of Govt of Delhi (NCR). The Stock Holding Corporation of India Limited sells the Stamp Paper through authorized vendors available in all the courts, all the registrars of properties and most of the Notary Public. You provide you link to the web site of the authorized sellers. As a concession or rebate the Virtual Office do not separately charge the Client a separate fee for the stamp paper, initially. Virtual Office purchases the stamp paper on behalf of the tenant. Later on we do not use the stamp paper. Reason is trust on each other. Those who do not trust can purchase the stamp paper themselves. We will certainly sign it. We confirm the receipt of money by email for the next period.
Law on registration of Rent Agreement
Registration of Our Rent Agreement
Our Virtual Office space falls in the area of Sub-Registrar-IX of Delhi – NCR. As per law Rent Agreement need to be registered only if it is of more than One (1) year. I is not essential to register for Rent Agreements which are up to One year or not Exceeding One year. If any of our Tenant want to register, we will give you SPOA for registration. This will certainly satisfy the Tenant. You may contact us in case of any doubt.