Rental Agreement

Introduction

• Anyone who wants to stay in a house on rent or get a property on rent, should enter into a
rental agreement with the owner of the house/property.
• The rental agreement is an official contract entered between the tenant and owner of a
property. Tenant is the person who wishes to take temporary possession of the owner's
property by paying the rental amount. The tenant can stay/use the property of the owner
for the time mentioned in the rental agreement.
• A rental agreement, also called a rent deed and lease deed, contains basic details of the
residential property, the owner of the property, the renter (or tenant, as he is also called),
the term of the rental period, and the amount of the rent for the said term.

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 Contents of a rental agreement

The person responsible for the

The contents of a rental payment of any other amount
agreement varies from place Amount of rent and due dates such as property tax, TDS (if
Names of the landlord and Description (Address) of the
to place. However, the usual for payment, grace period, applicable), property repair
tenant and/or their agents. property.
contents of a rental agreement late charges. changes, society/flat
include: maintenance changes, water
bill, electricity bill, etc.

Methods to terminate the Utilities furnished by the Facilities in the premises which
Amount of security deposit
agreement prior to the landlord and, if the landlord the tenant is entitled to use
Mode of rent payment. and the account where it is
expiration date and charges if charges for such utilities, how such as swimming pool,
held.
any. the charge will be determined. security systems etc.

Identification of parking
Rules and regulations such as How tenant repair requests are
available, including
pet rules, noise rules and the handled and procedures for
designated parking spaces, if
penalty for violation. emergency requests.
provided.

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 Terms commonly included in a Rent agreement

Rent: The consideration amount or

Deposits: The amount of deposit required (if any), the Terms of use: The purpose for which the property is to
Duration: Period for which the rental agreement will payment made by the tenant to the purpose of each deposit, and conditions for return or be used and terms and conditions regarding the usage
be in effect. landlord in exchange for the property adjustment of deposit at the end of the rent period. of the property.
rented out.

Termination: The period when the rental agreement

ends. It may end due to notice by one party to the
other for ending the rental period or due to the end of
Insurance: Whether the tenant is required to insure Repairs and maintenance: Party responsible for
Utilities: Which utilities are included in the rent, and the duration of the contract. When the agreement
the property – this is most often used in commercial repairs and maintenance of the property – landlord or
which utilities the tenant is responsible for. ends or terminates, the rent period also ends, and the
rental agreements. tenant.
final settlement of dues between the parties regarding
the property, such as the return of advance amount,
payment for damages, etc., will be made.

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Why is a rental agreement usually executed only for 11 months?
The rental agreement need not be registered when it is for a period of 11 months. Just putting
the signatures of the landlord, tenant and witnesses on the rented agreement printed on the
stamp paper are sufficient to make it valid and binding on the parties. To avoid the formalities
of registration, rental agreements are made for 11 months and extended after the expiry of 11
months for another term of 11 months.

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Important Documents Needed for a Rental Agreement Registration & Stamp Duty

Original proof of ownership or title of the property. This could be a sale deed, lease deed, or any other document that shows that the
landlord is the legal owner of the property.

Property documents such as Index II or tax receipt of the property to be leased.

Two photographs of each of the parties and one of each of the witnesses.

Copy of the address proof of both the parties and witnesses. Any of the following documents can be submitted as the address
proof: passport, Aadhaar card, ration card, bank passbook or driving license.

Route map of the property leased out.

Stamp paper of the appropriate value. The stamp duty payable for a rental agreement varies from state to state. You can check
the stamp duty rates for your state on the website of the Ministry of Finance.

Registration fee. The registration fee is also payable to the sub-registrar’s office. The amount of the registration fee varies from state to
state.

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How Much Does a Rent Agreement Cost?
The cost of a basic rental agreement in India can vary depending on the state, the city, the
property type, and the duration of the agreement. However, in general, the cost of a rent
agreement is made up of two components:

This is a This is a fee that is

government tax charged by the
that is charged on government for
all legal registering a rent
documents, agreement. The
including rent registration
agreements. The charges also vary
stamp duty rate from state to state,
varies from state but they are
to state, but it is typically between
typically between Rs. 500 and Rs.
Stamp duty 0.5% and 2% of Registration charges 1000.
the annual rent.

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 RENT AGREEMENT
This Agreement of Rent is made at New Raipur, Chhattisgarh on Date………-……..-2024 [………… Day of ………….. Month, Two Thousand and Twenty Four] BETWEEN Sri / Smt.
……………… Son of / Daughter of / Wife of– ………, Present Address: …………., Post Office……….., Police Station……………., District: …………., PIN……….., Chhttisgarh,
herein after called the LESSOR [which expression shall unless be excluded by or repugnant to the context be deemed to mean and include his successors, administrators, legal
representatives and assigns] of the FIRST PART;

AND

“Sri / Smt. …………..”, Son of / Daughter of / Wife of– ……………, by occupation:………., Present Address: ……., Post Office…….., Police Station……., District:
……….,PIN……….., Chhttisgarh, herein after called the LESSEE [which expression shall unless be excluded by or repugnant to the context be deemed to mean and include his / her
heirs, executors, successors, administrators, legal heirs, legal representatives and assigns] of the SECOND PART;

NOW THIS AGREEMENT TO RENT / LEASE AGREEMENT WITNESSETH and the parties named above do hereby mutually agree on the following terms and conditions:
-

1. That the First Part [Lessor] shall let out on monthly rent the Shop / Office space morefully described in Schedule-A to this Rent Agreement to the Second Part [Lessee] from the date
of execution of this agreement or from the date of handing of possession of the Schedule-A Property [which ever is earlier] .
2. That the monthly rent of the Schedule Property shall be Rupees ………. only [Rs………../-] , the rent needs to be paid on the 15th day of each following English Calendar month to
the Lessor [First Part] and in addition to same the Lessee shall also pay service tax & income tax to the Appropriate Authority with respect to the let out Schedule-A Property. Further
the Lessee shall also be responsible to pay the electricity charges consumed by the lessee in the schedule rented portion for the period of his / her occupation and shall also pay the
applicable maintenance charge for the shop / office as shall be fixed by the Lessor.
3. That the Lessee agrees to take the Schedule-A Shop / Office on lease at the aforesaid rent payable in the manner herein before prescribed. The rent so fixed shall be enhanced by 10%
every one year.
4. That the Lessee shall use the premises exclusively for the purpose of carrying on his business of ……………………………………………. He / She shall neither sublet the premises
nor admit any other partner in his business without the written permission of the Lessor.

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• 5. That the Lessee shall be responsible for keeping the leased premises on good shape. He / she shall keep all the fixtures, electric fittings inside the shop / office and in the common
area, etc in good condition.
• 6. That the maintenance of the building premises shall be monthly collected by the Lessor or by the duly authorised person to be appointed by the Lessor and/ or it may be monthly
deposited in the specified Bank Account of the Lessor.
• 7. That the Lessee shall be entitled to raise the wooden fittings of temporary nature inside the leased shop / office, provided such constructions / fittings are necessary for carrying
business of Lessee. The Lessee shall remove the aforesaid temporary wooden construction / fittings at the time of vacating the premises at his own cost.
• 8. That on the termination of the this Lease Agreement by the either parties, the Second Part [Lessee] shall immediately hand over the peaceful vacant possession of the Schedule-A
Rented Shop / Office to the First Part [Lessor]. Lessee intending to vacate the premises of his own, shall give a advance notice of one month of his intention to the Lessor to vacate the
premises.
• 9. That the Second Part [Lessee] has deposited with the First Part [Lessor] the interest free Earnest Money of Rupees ……………………... only in advance and that has now been
converted into interest free Security Deposit and the First Part hereby acknowledges the same.
• 10. That if the Second Part causes any loss or damages to the First Part with respect to the Shop / Office / Property Premises in question than the said loss or damage shall be
compensated by the Second Part.
• 11. That the Second Part [lessee] shall pay the monthly electricity charges to Chhattisgarh State Power Distribution Company Limited for the electricity consumed by him / her
according to the meter reading installed for the said Schedule-A Shop / Office let out to the Second Part [Lessee]. He shall also be liable for payment of proportionate fixed and other
charges levied by the Chhattisgarh State Power Distribution Company Limited for the period of his stay on rent, failing which the First Part [Lessors] / Chhattisgarh State Power
Distribution Company Limited shall stop / disconnect the electric supply forthwith of the Schedule-A Property.
• 12. That the Second Part [Lessee / Tenant] shall pay the monthly applicable maintenance Charge, which at present is fixed at the rate of Rs……………..………/- to the First Part or to
his duly appointed & authorised person or deposit the same in specified bank account of the First Part and also pay the electricity charges per month to Chhattisgarh State Power
Distribution Company Limited apart from the said monthly rental @ Rs…………….. for the said Schedule-A Rented Shop / Office Premises.
• 13. That the Lessee paying monthly rent shall enjoy the peaceful possession of the Shop / Office Premises during the period of continuance of the Lease.
• 14. That the Second Part [Lessee] shall render all possible help, cooperation and assistance to the First Part [Lessor] in the matter of keeping the Schedule-A Rented Shop / Office
Premises and common areas of the property in clean and good habitable condition.
• 15. That the Second Part [Lessee] shall keep the Schedule-A Rented Shop / Office Premises in good repair and tenable condition and shall not make any permanent alteration and
addition in the same.

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• 16. That the Second Part [Lessee] shall not sub-let or assign his lease-hold right / rental right over the Schedule-A Rented Shop / Office Premises [more fully described in the
Schedule-A herein below] or in any part of it to any other person. The Second Part [Lessee] shall also not part away with its possession to any third party and against the
interest of the First Part [Lessee].
• 17. That the Second Part [Lessee] shall use the Schedule-A Rented Shop / Office Premises [more fully described in the Schedule-A herein below], only for the specified
purposes as stated above and shall not use the same for any other purpose without prior written permission of Second Part [Lessee].
• 18. That the Second Part [Lessee] shall allow / permit the First Part [Lessor] or his agent to enter into the let out premises more fully described in the ScheduleA herein below
at all reasonable times to view and examine that the premises is in good tenantable condition and it is being used for the aforementioned business purposes only.
• 19. That the Second Part [Lessee] shall not do or cause to be done any such act or things which may cause damage to the Schedule-A Rented Shop / Office Premises or
annoyances & disturbance to the other shop keepers / Office bearers & its occupants / other inhabitants & members of the Market.
• 20. That the First Part [Lessor] shall allow / permit the Second Part [Lessee] to hold, occupy and enjoy the Schedule-A Rented Shop / Office Premises for specified purpose
without any interruption by First Part, according to the terms incorporated in this Rent Agreement / Lease Agreement.
• 21. That the Second Part [Lessee] shall keep the schedule premises including installations, electrical fittings in the common bathrooms / latrines, staircase, common space of
the building premises at his own cost in good repairs as may be necessary.
• 22. That upon determination of this Lease Agreement, the lessee shall promptly and quickly surrender to the Lessor the said Schedule-A Shop Premises or Office Premises.
Provided always that if any part of the said Lease rent be in arrears and unpaid for the period of three [3] calendar months, whether the same have been lawfully detained or
not, or if there shall be breach of non observance of any of the covenants by the Lessee herein contained in this agreement, and if any such case, the Lessor may
notwithstanding the waiver of any right, expel the Lessee after giving a notice to remove the cause within 30 [thirty] days and this device shall absolutely determine and the
Lessee shall forfeit the right to remove or recover any compensation for the additions or alternation in the demised premises and the Lessee shall also be liable to pay interest
on the arrears of rent @ 12% per annum.
• 23. That if the lessee fails to deposit rent and / or maintenance charge continuously for three months, the agreement in question shall be liable to terminated and the security
deposit shall be forfeited.
• 24. That if the lessee quits of his own instance, his security deposit shall be returned without any interest. However, all dues towards monthly rent and monthly maintenance
must be cleared therefore and or otherwise the same shall be adjusted from the security deposit amount.
• 25. That if the lessee quits of his own instance, his security deposit shall be forfeited by [first part].
• 26. That no illegal occupation and trade shall be allowed.
• 27. That no sub leasing or sub- letting or parting with possession of the Schedule-A Property shall be allowed.

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• 28. That advertisement of Shop or Brand will be as per Rules stated in the CG Municipal Act.
• 29. That decoration or modification of the Shop can be done with prior permission but no permanent construction / fitting shall be allowed and in no manner the [Second Part] shall
change the exterior of the building.
• 30. That the lessee shall have to pay three months advance rent with applicable GST.
• 31. That all minor day-to-day inner repairs whatsoever in the Schedule-A Rented Shop / Office Premises shall be carried out by the Second Part [Lessee] himself at his own cost.
• 32. That the Second Part [Lessee] shall have supply of water at common taps drawing water from the common overhead water tank and the Electricity as it is supplied by the
Chhattisgarh State Power Distribution Company Limited through separate electrical meter fitted for the Schedule Shop / Office Property in common electric panel.
• 33. That the First Part shall not be held liable for theft / fire caused in the Schedule-A Property or in the Building Premises.
• 34. That the Schedule-A Rented Shop / Office Premises can be vacated by the Second Part [Lessee] by just giving notice as per Chhattisgarh Rent Control Act, 2011 to the First Part
[Lessor] at any point of time.
• 35. That this Rent Agreement / Lease Agreement shall be deemed terminated for contravention / violation of any of the terms and conditions contained in this present Rent Agreement /
Lease Agreement and the Second Part [Lessee] shall be liable to vacate the Schedule-A Rented Shop / Office Premises.
• 36. That all prevailing Land Laws of Tenancy / Transfer of Property Act / Chhattisgarh Rent Control Act, 2011 and the Rules of the Court are applicable to both the Parties of this Rent
Agreement / Lease Agreement and it is required to be registered at the cost of Lessee [Second Part].
• 37. That for all practical purposes the Authority under Chhattisgarh Rent Control Act, 2011 shall solely have jurisdiction to adjudicate any disputes arising in between the parties in
respect to Schedule-A Property.

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• IN WITNESSETH WHEREOF THE PARTIES after going through the contents of this Rent Agreement and on understanding the meaning of the same have put their respective
signatures on the day, month and year first above written, out of their free will and consent and without any sort of provocation from any corner.

SCHEDULE-A
• All piece and parcel of the Shop No………. / Office No………., Area: …………………..Square Feet, at ……….Market in Ward No…….., Kutchery Road, Police Station: Raipur
[Kotwali], Post Office: G.P.O., District of Raipur, within the State of Chhattisgarh without any Car Parking Space with common generator facility and common water supply facility at
Common Area from Overhead Water Tank only and the said Shop / Office together with all electrical points, fittings & fixtures and separate Electrical Meter fitted in common area in
ground floor / basement.

[SRI / SMT……………………………………………………..] Son of / Daughter of / Wife of: -………………]

SIGNATURE OF THE FIRST PART / LESSOR

[SRI / SMT……………………………………………………..] Son of / Daughter of / Wife of: -………………]

SIGNATURE OF THE SECOND PART /LESSEE

WITNESSES: -
(1) Sri Son of: Resident of:
(2) Sri Son of: Resident of:

Date of Drafting Agreement: ………..

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