Rent Agreement New Rules: With the implementation of the new rules, not only will a registered rent agreement be made by spending less money, but the interests of the tenant and the landlord will be more secure than before.
UP Rent Agreement Act: The Uttar Pradesh government is now going to make a new rule to improve the security of property. Under this, now the registration of rent agreement will be promoted. This simply means that a legal document will be made for those who take a house on rent, which will protect their rights. This proposal will be placed before the government soon. The government wants more and more people to get the rent agreement registered, so it has been recommended to keep the stamp duty i.e. the cost of registration low.
Stamp duty of Rs 500 to Rs 20000 will have to be paid
For a one-year rent agreement, a stamp duty of Rs 500 to Rs 20,000 will be charged. This will make it easier for the people and will also reduce property related disputes. Stamp and Registration Minister Ravindra Jaiswal said that by registering the rent agreement, disputes between the landlord and the tenant will be reduced. Also, the property which has been given on rent will also be safe. Currently, stamp duty is charged according to the rent and for how long it has been given.
Interests of both the parties will be protected if the lease agreement is registered
If the lease agreement is registered, then the interests of both the parties will be protected. After registration, there will be legal recognition according to the terms written in the agreement. This means that if there is any dispute, then the decision will be according to the terms written in the agreement. Currently, most people do not get the rent agreement done, because the stamp duty i.e. the expense in getting the registration done is very high. People usually make the agreement on a stamp paper of Rs 100, which has no legal meaning.
Only 86000 people got their rent agreement registered
The data of the last one year shows that only 86000 people have got their rent agreement registered, whereas lakhs of people rent out their homes and properties every year. This means that most people are taking or giving houses on rent without any legal protection. According to the new rule, an online portal will be created to make rent agreements. There will be a fixed format on this portal. You can download and print that form or save it in your computer. It will get legal recognition by affixing a stamp on the relevant form.
After this, that agreement will be considered legally correct. After that both the landlord and the tenant can present their claims according to the things written in that agreement. That is, if there is any dispute, that agreement can be used as evidence. Under the proposed new Agreement Act, 2% stamp duty will be charged on the rent agreement for up to one year. Along with this, a list of stamp duty for different rent amounts is also being prepared.
A stamp duty of Rs 500 will be levied on annual rent up to Rs 2 lakh. A stamp duty of Rs 5000 will be levied on annual rent up to Rs 5 lakh and a stamp duty of Rs 20000 will be levied on annual rent up to Rs 1 crore. This simply means that now if you are taking a house on less rent, then you will have to pay less stamp duty. This will make it easier for people to get a rent agreement and their rights will be legally protected.
What is the rule now?
Under the current rule, if you register a rent agreement in the state, then you have to pay stamp duty according to the average annual rent. Stamp duty of 2 percent is levied in rural areas and 4 percent in urban areas. That is, if the rent of your house is two lakhs, then currently the stamp duty is up to Rs 8000. But according to the new rules, only Rs 500 stamp duty will have to be paid on it. Due to the high stamp duty in the current rules, in most cases the tenant and the landlord do not register the agreement. Last year, only 21,939 rent agreements with a period of one to 10 years were registered in the state.
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