Rent agreement in India: what to check before you sign

A rent agreement decides what happens when the geyser breaks, the rent goes up or you want to leave early. Most people sign one in a hurry. Ten minutes with this checklist can save months of argument.

The basics

• Names and addresses of the owner and every tenant, matching ID proofs.
• The property described clearly: flat number, floor, building, and what is included (parking, furniture, appliances). Attach a list of fittings.
• Start date and length of the agreement.

Money

• Monthly rent and the date it is due, and how it is paid.
• Security deposit: how much, and exactly when and how it is returned. The agreement should say deductions are only for unpaid dues and damage beyond normal wear and tear.
• Rent increase: by how much and when (for example, 5% after 11 months).
• Maintenance, electricity, water and society charges: who pays which.

Lock-in and notice

• Lock-in period: a time during which neither side can end the agreement. If you might move, keep it short.
• Notice period: usually one or two months. Check it is the same for both sides.

Repairs and use

• Who pays for minor repairs (usually the tenant) and major repairs (usually the owner)?
• Are pets, guests or a change of use allowed?
• Can the owner visit, and with how much notice?

The 11-month question

Many agreements are made for 11 months. That is because, under the Registration Act, 1908, a lease of more than one year must be registered, which means paying registration fees and higher stamp duty. An 11-month agreement still needs proper stamp duty in most states, and it can be registered if both sides want stronger proof.

States that have adopted laws based on the Model Tenancy Act, 2021 may have their own rules, such as limits on the security deposit. Check what applies in your state.

Stamp duty and signing

Rent agreements need to be on stamp paper of the right value, or e-stamped, as per your state's stamp law. An agreement without proper stamp duty can be hard to use as evidence until the duty and a penalty are paid. Both sides should sign every page, with two witnesses where required.

Before you sign

Read the termination and deposit clauses twice, keep a signed copy, and take dated photos of the flat on the day you move in.

Not sure about a clause? Ask April in plain words, or upload the agreement and April will mark anything unusual.

This article is general information, not legal advice. Rules differ by state.