Making a rent agreement: what to put in it, and why you never needed a notary

What a rent agreement is, in law

You are letting a flat or a house, or you are about to move into one. Someone has told you to "make an agreement", and someone else has told you to get it notarised. This guide sorts out what the law actually asks for.

In law, renting out a home is a lease. Section 105 of the Transfer of Property Act, 1882 defines it as a transfer of the right to enjoy a property for a period, in return for rent. The owner is the lessor (the landlord); the person who moves in is the lessee (the tenant). A rent agreement is the written record of that lease: who, which property, for how long, for how much, and on what terms.

Three laws decide whether your agreement holds up:

1. The Registration Act, 1908 decides whether it has to be registered at the Sub-Registrar's office.
2. The stamp law of your state decides how much stamp duty it must carry.
3. The Transfer of Property Act fills in the rules on anything your agreement does not cover.

Why 11 months

Section 17(1)(d) of the Registration Act makes registration compulsory for three kinds of lease: a lease from year to year, a lease for a term exceeding one year, and a lease reserving a yearly rent. Section 107 of the Transfer of Property Act says the same: those leases can be made only by a registered document.

Every other lease can be made without registration. An agreement for 11 months, with rent fixed per month, is outside all three. It may be registered if you want (Section 18 makes that optional), but it does not have to be.

That is the whole reason for the "11-month agreement". Strictly, 12 months does not "exceed one year" either; 11 months is the common choice because it stays clearly under the line.

Maharashtra is the exception. There, the state's rent control law requires every leave and licence agreement (Maharashtra's name for a rent agreement) to be registered, whatever its term. If your property is in Maharashtra, plan for registration from the start.

A lease that had to be registered but was not cannot affect the property and cannot be received as evidence of the lease (Section 49 of the Registration Act). This is why a three-year agreement on plain stamp paper is a weak document.

Stamp duty: the one thing you cannot skip

A rent agreement is an "instrument" that attracts stamp duty, and the duty must be paid before or at the time of signing (Section 17 of the Indian Stamp Act, 1899). Stamp duty is a state tax, so each state sets its own amount. In some states it is a fixed sum for a short agreement; in others it is a percentage worked out from the rent and the deposit. Our state-by-state guide explains the methods, and the calculator shows the figure for your state.

What happens if you skip it: under Section 35, an agreement that is not duly stamped cannot be admitted in evidence or acted on. If you later need it, for example to prove the deposit you paid, you will have to pay the missing duty plus a penalty that can be as high as ten times the duty.

Who pays? Section 29 says the tenant, unless you agree otherwise. Write down what you agree.

Why you never needed a notary

Notarising a rent agreement is a habit, not a rule. No law requires it.

Under Section 8 of the Notaries Act, 1952, a notary may attest that a document was signed. That is all a notary's stamp on a rent agreement says: that these people signed in front of the notary. It does not:

• register the agreement (only a Sub-Registrar can do that);
• pay the stamp duty (only the stamp paper or e-stamp does that);
• make the terms any more binding than the signatures already do.

What makes your agreement valid is simple: the right stamp duty, and the signatures of the landlord and the tenant. Two witnesses signing as well is good practice, because they can later confirm who signed.

You do not need to be in the same room either. Section 5 of the Information Technology Act, 2000 says that where a law requires a signature, an electronic signature affixed in the prescribed way satisfies it. Aadhaar e-sign, where each person confirms with a one-time password on their own phone, is such a signature.

What to put in it

At a minimum:

• The parties: full names, parents' names, ages and addresses of the landlord and the tenant.
• The property: full address, floor, and what comes with it (parking, furniture, fittings).
• The term: start date and length, for example 11 months from 1 November.
• The rent: the monthly amount, the date it is due, and how it is paid.
• The security deposit: the amount, and when and how it is returned, including what can be deducted.
• Bills and charges: who pays electricity, water, gas, maintenance and society charges.
• Use: residential only, who may live there, whether sub-letting is allowed.
• Repairs: who handles day-to-day repairs and who handles major ones.
• Lock-in and notice: any minimum period, and how much written notice either side must give to leave.
• Renewal and increase: whether the agreement can be renewed, and by how much the rent may rise.

If you leave something out, the law fills the gap. Section 108 of the Transfer of Property Act sets default duties: the landlord must disclose serious hidden defects, the tenant must pay rent on time and hand the property back in the condition received, apart from normal wear and tear. Section 106 says a house let for living in, with no agreed term, runs month to month and can be ended by 15 days' written notice. It is better to agree these things than to rely on the defaults. The clause-by-clause guide shows the wording.

What to do, step by step

1. Agree the terms first. Rent, deposit, start date, term, notice period, lock-in, who pays which bills. Settle them before anything is drafted.

2. Collect the details. Full names and addresses of both parties, the property address, and the names and numbers of two witnesses. For an online agreement, both parties need an Aadhaar-linked mobile number.

3. Draft it and read it together. Both of you should read the whole agreement before anyone signs. Check the amounts and dates twice.

4. Pay the stamp duty before signing. Buy stamp paper or an e-stamp for your state, for the right amount. The date on the stamp must not be later than the date you sign.

5. Sign. Landlord and tenant sign, and the two witnesses sign. On paper, sign every page. Online, everyone e-signs from their own phone.

6. Hand over money with a record. Pay the deposit and the first rent by bank transfer, or get a signed receipt. Each of you keeps a full copy of the signed agreement.

7. Note the end date. A month before the term ends, decide whether to renew. A renewal is a new agreement with new stamp duty.

In Maharashtra, add one step after signing: registration at the Sub-Registrar's office for the area where the property is.

Timeline and costs

When	What	Cost
Before signing	Stamp duty	Set by your state; the price card and calculator show it before you pay
At signing	Drafting, e-stamp, e-sign	₹599 with eMunshi, all-inclusive: drafted from your answers with a free preview, government e-stamp issued in your name, Aadhaar e-sign for landlord, tenant and two witnesses, signed PDF on WhatsApp and email, two revisions. Stamp duty is passed through at cost.
At signing	Notary	Not needed
Within four months of signing	Registration, only for a lease over one year or in Maharashtra	Registration fee set by your state
A month before the end	Renewal	A new agreement and new stamp duty

Documents to keep handy

• The signed, stamped agreement (both of you keep a full copy).
• The stamp paper or e-stamp certificate.
• Proof of the deposit and every rent payment: bank statements or signed receipts.
• Photos or a list of the condition of the property and its fittings on the day you move in.
• ID and address proof of both parties.

Mistakes that sink people

• Signing before buying the stamp. The duty must be paid before or at signing.
• Using a stamp paper of the wrong amount, or one bought for another state.
• Writing a term longer than one year without registering. Outside Maharashtra, keep it to 11 months, or register it.
• Paying the deposit in cash with no receipt. It is the first thing disputed when the tenant leaves. If a landlord will not return it, see what to do.
• Leaving out the notice period and lock-in. Then the law's default applies, which may not be what either of you wanted.
• Paying a notary and thinking the job is done. A notary's seal does not replace stamp duty or registration.

When an 11-month agreement is not enough

For a longer lease, a commercial premises, or a property in Maharashtra, the agreement must be registered. Under the Registration Act it goes to the Sub-Registrar for the area where the property is, within four months of signing, and the people who signed it (or agents they have authorised) must appear there. If a tenancy has already gone wrong (unpaid rent, a tenant who will not leave), an advocate can tell you where you stand; a 30-minute call starts at ₹999.