If you are a landlord or a tenant in Delhi and are looking to register your rent agreement, you may be wondering about the associated costs. In this article, we will provide you with a comprehensive guide on the registered rent agreement cost in Delhi.

Firstly, it is important to note that a registered rent agreement is a legally binding document that outlines the terms and conditions of the tenancy agreement. It is mandatory in Delhi to register your rental agreement with the Rent Control Office within 2 months of the agreement being executed. Failure to do so can result in penalties and legal complications.

The total cost involved in the registration of the rent agreement includes two components: stamp duty and the registration fee.

Stamp Duty for Rent Agreement in Delhi

Stamp Duty is a state-imposed tax on the legal agreement that is paid to the government when the document is executed. It is calculated as a percentage of the rental value and is not fixed.

In Delhi, the stamp duty for a rental agreement is 2% of the annual rent value. The rent value is calculated by multiplying the monthly rent by 12. For example, if the monthly rent is Rs. 10,000, then the annual rent value is Rs. 1,20,000, and the stamp duty payable will be Rs. 2,400.

Registration Fee for Rent Agreement in Delhi

The registration fee is an additional charge for registering a rent agreement with the Rent Control Office. It is a fixed amount and varies according to the term of the agreement.

In Delhi, the registration fee for a rental agreement is Rs. 1,100, irrespective of the term. Therefore, whether the agreement is for 11 months or 3 years, the registration fee will be the same.

Conclusion

In summary, the registered rent agreement cost in Delhi includes both the stamp duty and registration fee. The stamp duty is 2% of the annual rent value, while the registration fee is a fixed amount of Rs. 1,100. It is important to note that these charges are subject to change, and you should always check the current rates before registering your rent agreement.

As a landlord or tenant, it is crucial to register your rental agreement to ensure that it is legally binding and enforceable in case of any disputes. By understanding the costs involved, you can plan your expenses accordingly and avoid any legal complications in the future.