Mayank (Director) 22 September 2014

Lease agreement in hyderabad for period less than 1 year

I have to take a residential property on rent in Banjara Hills, Hyderabad. The lease is of 11 months.Tthe agreement has already been drafted in consultation with the Owner and Lawyer. The monthlly rent payable is Rs 15000 and the deposit amount is Rs 30000.

I have below mentioned doubts about the Stamp duty and registration requirements for the same.

Q1. Is registration of Leases of Immovable property compulsory even for Lease period of less than one year?

Q2. How much stamp duty is applicable ?

Q3. What are the applicable charges(stamp duty, registration fees and user charges etc.) for Registration of Lease Agreement? if applicable for less than one year.

Q4. Where do I have pay to pay the stamp duty and what is the procedure for registration (if required)?

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4 Replies

Hardeep (Business) 22 September 2014

1) If the deed is to be shown as evidence in its totality at any time, its registration is essential, even though it is of less than a year. It is normally understood that lease of 11 months need not be registered. Indeed the Registration Act says so. But that then can only be shown as " collateral evidence " to prove only the fact of possession, not of the terms of the lease deed.

Hence it is better to get it registered for both sides. See for eg :

https://www.bangalore5.com/Admin/viewNew.php?id=115

Which is coming as a surprise to many people but seems to be the Court's present interpretation......

2) Each State has different Stamp Duties.

3) You and the Landlord need to go to the Registrar's Office in the Zone where the property lies along with ID Proofs etc. AFAIK, photos, signatures and hand prints on the lease deed will be taken there. Before that the Lease Deed can be prepared via any Broker who would also help you in registration matters, of course for a cost.

DISCLAIMER : General information and advice provided is without any warranties as to suitability for any use, correctness and application to any specific case. Please always take proper legal counsel . However, if it helped anyone even a little a " thanks" would be appreciated and would encourage me to keep on making efforts :-) . I am also always open to corrections and further learnings from more experienced Seniors here.

Mayank (Director) 22 September 2014

hi Hardeep,

Thanks for sharing the bangalore specific link.

It would be great if you can help me out with a link highlighting the applicable Stamp duty and Registration charges in Hyderabad. Are there any other charges also applicable in registering the Rental Agreement.