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Category: Rental Agreement

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Rental Agreement

How can I verify that my rental agreement is fully registered, and what distinguishes a registered agreement from an estamp agreement?

It’s very easy to verify if a rental agreement is registered. A registered rental agreement consists of the following key information

  • Registration Number – A unique number assigned upon registration
  • The Registration receipt – Proof of registration issued by the sub-registrar
  • Stamp Duty description – Details of the Stamp Duty paid
  • Biometric Verification – Photographs and thumb impression of the parties involved, captured at the sub-registrar’s office
  • Sub-registrar’s seal & signature – Official verification to confirm the registration

Refer to the below visuals of the registered document:

Below is the image of the registration receipt:

TRACKING A REGISTERED RENTAL AGREEMENT:

Once registered, a rental agreement can be verified and tracked online. You can download:

  • Encumbrance Certificate (EC): Records all registered transactions related to the property
  • Certified Copy (CC): A verified copy of the registered agreement

These documents confirm the authenticity of the registered rental agreement.

Is eStamp paper a Registered Rental Agreement?

Few people assume that an estamp paper is a registered rental agreement, but this is incorrect.

  • What is an Estamp Paper?

An estamp paper is a digitally generated stamp paper used for rental agreements of up to one year.

Key Differences from a Registered Agreement:

  • No Physical Registration: unlike a registered rental agreement, an estamp agreement does not require a visit to the sub-registrar’s office.
  • Remote Signing: parties can sign the agreement remotely as their convenience.
  • Not stored in Registration Record: The details of an estamp agreement are not recorded in government registries like EC or CC.

An image of eStamp Paper:

CONCLUSION:

  • To verify if your rental agreement is registered, check for the registration number, receipt, stamp duty details, biometric verification, and sub-registrar’s seal & sign.
  • For official tracking, you can access documents like the Encumbrance Certificate (EC) and Certified Copy CC).
  • If your rental agreement is only on an estamp paper, it is not officially registered at the sub-registrar office.

For further assistance, contact us:

📞 Call or WhatsApp: +91-974247902

📧 Email: pgnproperties@gmail.com

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Rental Agreement

What are the stamp duty and registration charges for rental agreement registration in Karnataka?

Registration of rental agreement is mandatory for a rental period of more than 11 months

Below are the government charges for registration of rental agreement

  • Stamp Duty: 1%
  • Registration fee: 0.5%
  • Scanning fee: Rs. 500 (approx)

Formula to calculate stamp duty and registration fee: Average annual rent + GST at 18% + Security deposit

For example:

  • Monthly rent Rs. 25000
  • Security deposit Rs. 1,00,000
  • Duration: 12 Months
  • Average annual rent: 25000X12/12= 25000
  • GST at 18%: 25000*18% = 4500

Formula & Calculation : Average annual rent + GST at 18% + security deposit so 25000+4500+100000= 1,29,500/-

  • Stamp Duty at 1%: 1,29,500 X 1% = 1,295
  • Registration fee at 0.5%: 1,29,500 X 0.5% =647.5 (round off Rs. 648)
  • Scanning fee: Rs. 500 (approx)

Hence, the total government charge is Rs. 2443

Renter, rentee and two witnesses must present in sub-registrar office for registration of rental agreement.

Registration of rental agreement is option for a rental period of less or equal to 11 months

In Karnataka, most of the residential rental agreements are made for a period of 11 months. Post the 11 months, agreement would be renewed for another 11 months on the mutual consent of owner and tenant

11-month rental agreement made on Rs. 200 non-judicial E-Stamp paper. 11-month agreement looks like image below

 

We provide rental agreement services. Same-day express delivery is available.

To opt for our service, please email us at pgnproperties@gmail.com or WhatsApp us at + 9 1 97424 79020.

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Rental Agreement

How to sign rental agreement online?

We can sign rental agreements online by using the following tools

  1. Email
  2. Applications like docu sign, e-sign or any other signing application

If you have geographical, time or health constraints, follow the below options to execute & sign your rental agreement

 

Option 1: Joint owner

If more than one person owns the property, it is called joint ownership. A Joint owner can sign the rental agreement on behalf of another joint owner

For Example: A husband and wife jointly own a rental property. Wife can sign the rental agreement on behalf of husband in his physical absence,

Option 2: Power of Attorney (POA)

 Power of attorney (POA) is legal authorization for a designated person to make decisions about another person’s property

 Landlord can give power of attorney (POA), attorney holder can sign on behalf of landlord.

You may draft the POA limiting it to renting the property and not for selling or making monetary transactions. So, your attorney holder can only sign the rental agreement, and you can deal directly with the tenant for rental payments.

Make sure that your attorney is trustworthy. You may give POA to your family members, relatives, broker, colleague, or friend

Option 3: Local assistance

 Take help from local guide, local guide can be your family members, relatives, friends, colleagues or broker

  • Get the rental agreement done through your local guide (buy stamp paper + print)
  • Get your tenant’s signature on rental agreement
  • Notarize the agreement
  • Receive the soft copy of agreement by email
  • You take a printout
  • Sign the agreement at bottom of all pages
  • Send back the soft copy of signed agreement to tenant by email.

Option 4: Local assistance & Digital sign to save paper

  • Get the rental agreement done through your local guide (buy stamp paper + print)
  • Get your tenant’s signature on rental agreement
  • Notarize the rental agreement
  • Received the soft copy of agreement by email
  • Use applications like DocuSign, digisign, easy sign, camscanner, these are few e-signing platforms, I believe there are many such e-signing platforms available in the market, This helps you to sign a document without even taking a printout and avoid wasting paper.
  • E-mail back the signed document to tenant.

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We provide rental agreement service in Karnataka. Our service includes tenant screening, drafting, execution, facilitating digital signs with tenant & Witnesses, notary and home delivered.

To opt for our service, please write to us pgnproperties@gmail.com or Whatsapp to +91-97424 79020.

Thank you for reading…

Categories
Rental Agreement

How do I extend a rental agreement in India?

To extend a rental Agreement, we need to make few amendments to the existing terms & conditions.

Below is the list of amendments to be incorporated in renewal agreement or agreement extension.

  1. Add the word “renewal” or “extension” in the title of an agreement
  2. The agreement execution date changes to current date
  3. Owner and Tenant age might change by one year (This is applicable only if age details mentioned in agreement)
  4. Renewal agreement commencement and end date changes. Generally, renewal agreement commences from very next day of the current agreement end date.
  5. Rent might increase by around 5%
  6. Security deposit remains same
  7. Monthly maintenance of a flat in apartment society may have an impact if apartment society increases or decreases maintenance cost.
  8. Water, electricity, gas and parking charges may have an impact
  9. Consider removing lock-in period if mentioned in 1st-time agreement.
  10. Notice period remains same. However, we may modify notice period under the mutual acceptance of owner and tenant.
  11. Fixtures, fittings, and furniture details may change if there is any change at the time of agreement renewal.

Below we attached the image of mock renewal agreement. In the image, important changes are highlighted in yellow for your consideration.

The execution procedure of renewal agreement is same as your 1st agreement. Below is the procedure to execute a rental or renewal agreement

  1. Prepare the draft in Word format
  2. Buy Rs.500 non-judicial e-stamp paper from your nearest cooperative bank, court, or registrar’s office
  3. Print the draft on non-judicial e-stamp paper
  4. Meet the notary public near you with supporting documents. Owner , tenant, and witnesses have to sign the agreement
  5. The notary public attests and signs the Renewal Rental agreement.

This completes the execution procedure of Renewal Rental Agreement.

In Karnataka, we provide renewal agreement service. Our service includes drafting + agreement execution + notary + home delivery in 2 working days. Same-day express delivery available. To opt for our service, please write to us pgnproperties@gmail.com or  Whatsapp  +91-97424 79020.

Thank you for reading…