Notarized Agreement | Merits | Why To Make | Online Steps | Registered Agreement | Content | Benefits | Documentation | FAQ
A lot of Indians try to build a steady source of income by renting out their property. This helps them generate a great deal of passive income. But, if you are choosing to rent a property, you need to take a lot of care and exercise the right caution as well. This will help you avoid unwanted legal hassles that may otherwise arise.
So, you need to make the right rent agreement in order to ensure you have the terms listed. The rent agreement will pack in a lot of details and this will include the terms and conditions, the financial details, payment terms, and so on.
A notarized agreement is a rent agreement that has been printed on stamp paper. This, in turn, is signed by a public notary. Any lawyers and advocates usually categorize as public notaries.
So, in such cases, the notary needs to verify the identity of both the parties and the documents that are submitted. By signing the document, the notary is endorsing the document. It is important for both parties to be present when the document is notarized.
When you are notarizing the document, the process is simpler as compared to the process of registering the document. When it comes to notarized documents, you don’t need to pay any stamp duty and registration fee. All you need to pay is the fee for the notary. This is going to range from Rs. 200 to Rs. 500 and this will depend on the locality.
However, if you need to produce a document in court, the notarized agreement is not admissible in a court of law. It is not validated because it is not legally binding. A rental agreement, on the other hand, is legally binding and is considered admissible in a court of law.
Merits Of The Notarized Agreement
Here are some of the obvious advantages of using a notarized agreement
- You don’t need to pay any stamp duty charges on notarized documents. All you will need to pay is a notary fee.
- You don’t have a long list of formalities and therefore this agreement is very easy to execute. Simply visiting the lawyer’s office will serve your need.
- This document minimizes the chances of fraud and theft
- A notarized document acts like a witness document in most cases
Why Should You Make A Notarized Rent Agreement?
If you are wondering about the need to make a notarized rent agreement when it is not admissible in a court of law, here are some of the conditions when it is best suited.
- If you need an agreement in a short time period and on an immediate basis
- When the rental agreement term is less than 11 months
- The document mainly helps in authenticating the identity of both the buyer and the seller and to establish the right mutual understanding
The Documents To Be Notarized
Here is a list of documents that are always notarized in most cases
- Power of attorney
- General will
- Partnership deed
Steps To Create A Notarized Rent Agreement Online
Here are the key steps you need to follow when you have to create a notarized rent agreement online
- Take a pre-approved template which contains the required information
- Make sure to attach the necessary documents with it
- Pay the service charge along with the notary fee
You should receive a soft copy of the agreement in your email in a few days’ time and this will complete the process of notarizing the document
So now that we have dealt with the notarized agreement, let us shift our focus to the concept of registered agreement
What Is A Registered Agreement?
A registered rent agreement is printed on stamp paper and it then needs to be registered with the sub-registrar of the area. This is a legally binding document and is admissible in a court of law.
You can carry out the registration process in either an online or offline manner, based on what you deem fit. However, the end step has to be executed in person as you need to visit the sub-registrar’s office.
The Rent Controls Act of the Central Government are applicable to the registered documents. It is compulsory by law to register the rental agreement if the period is more than 11 months.
When you choose to register a rental agreement, you will need to pay both the stamp duty and the registration charges. These charges are based on the rental amount that is to be paid. This amount needs to be mentioned in the document. It is important to know that the charges can differ from one state to the other and some states also have a rebate for women.
For instance, the stamp charges in Maharashtra are going to be different from what Andhra Pradesh charges.
The Details Of The Rent Agreement
As we all know, the rental agreement is a very pivotal document and one that holds a lot of value. This is why you need to pay heed to the specifics and make sure that all the detail are stored handily in it.
Here are some of the basic details that are going to be a part of the rental agreement.
- The details of the tenant which includes the name, contact details, the address
- The details of the landlord which includes the name, contact details, and the address
- Security deposit amount
- Monthly rent and the maintenance charges to be paid if any
- Address and description of the property in question
- Contract terms
- The annual increase in rent amount, if applicable
- Lock in period
- Clauses for termination of the contract if the need arises
So, these are some of the key things that must be included in the rental agreement. As this is a legally binding document, the important terms should all be listed here. This is important because, in the unforeseen circumstances that the two of you run into a dispute, you will be able to produce this document and help the court come to the right judgment.
The Benefits Of A Registered Rent Agreement
Here are some of the advantages that a registered rent agreement has to offer.
- It is admissible in a court of law. This, therefore, provides the right sense of security to both the seller and the buyer.
- This agreement is duly verified by the registrar or the sub-registrar and is therefore legally binding
- You can carry out the process either online or offline manner as per your convenience. However, you will need to be physically present at the sub-registrar’s office during the signing process.
When you are looking to register a rent agreement, here are the key documents that you need to have
- 2 Photographs of each of both the parties involved
- The evidence of ownership or the title of the property
- Address proof for both the parties and the witnesses as well
- Original evidence of property ownership
- The route map of the property
- Property tax receipt
So, make sure that you have all of these handy and this will ensure a quicker registration process.
The Documents To Be Registered
Here is a list of documents that should always be registered in most cases
- The sale deed
- Rent agreement
- Most the real estate documents
Steps To Create A Registered Rent Agreement Online
- Take a pre-approved legal template and add the right particulars as needed
- Attach the necessary documents along with it as stated
- Make the online payment and this should cover the stamp duty charges, registration fee, and service charge as well
- You will receive the agreement after the document check is done. However, you need to visit the sub-registrar’s office before he signs the document to complete the process.
What is easy to execute – the notarized agreement or the registered agreement?
The notarized agreement is easy to execute as it has far fewer formalities and doesn’t need your physical presence.
What is admissible in a court of law?
The notarized agreement cannot be produced in a court of law. The registered agreement is however admissible in a court of law and is considered to be a legally binding document.
Is it compulsory to register a document?
Yes, if your rental agreement is for a duration that exceeds 11 months, it is compulsory to have it registered. If you fail to do so, it is considered to be a punishable offence. Some states have made registration compulsory even for tenure less than 11 months as well.
Who is a public notary?
Any attorney is likely to be categorized as a public notary and can sign the notarized agreement
Can you make a notarized agreement online?
Yes, you can easily make a notarized agreement online as you don’t need to go anywhere. This has been made for enhanced comfort and ease of use.