Param (Manager) 05 September 2010

Rent Agreement

Hi All,

I own a property in Indirapuram (Ghaziabad). I rented it for last 11 months and the agreement was made on Rs. 50/- stamp paper. We are planning to renew the contract.

I would like to know, is it fine to renew on 50/- Non Judicial Stamp Paper or should I purchase for higher value this time? and is it safe for any legal action against property disputes?

I have also heard about registered agreement in court, any highlights will be appreciated. Should I opt for this?

Please advise.

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1 Replies

Bobby Mani T (Lawyer) 19 September 2010

Rent agreements are lease agreements and are to be stamped according to the stamp Act, which says it is to be made on stamp paper equal to bottomry bond. the rate of bottomry bond stated in the Act is 2.5 % of the amount the lease is for. In short the stamp paper of value of 2.5 % of the total rental value is to be used, else you may have to face penal consequences when you try to use the document for evidence in court.